Add yet another contractor to the list of victims of the investigative prowess of the City of Philadelphia’s Office of the Inspector General (OIG).
On May 19, 2014, as a result of an OIG investigation, the U.S. Attorney’s Office charged Airmatic, Inc., a woman-owned, Malvern-based firm doing business with the City of Philadelphia, with defrauding the City of approximately $556,633.03. It is alleged that Airmatic supplied “unapproved, off-contract products” to various City departments in violation of its contracts with the City. If convicted, Airmatic faces a maximum possible sentence of five years of probation, a $500,000 fine, or twice the pecuniary gain/loss, a $400 special assessment, and restitution to the City of Philadelphia.
The takeaway on this latest prosecution against a City contractor? If you are thinking of pulling a fast one by the City, don’t. You will get caught, and you will be punished.
The FBI press release on the charges against Airmatic can be found here. The Information against Airmatic can be found here. The Philly.com article on the charges against Airmatic can be found here.
Christopher I. McCabe, Esq.
