DENVER, Colo. -- The U.S. Air Force Office of Special Investigations was among the agencies that uncovered an alleged scheme involving two Denver-area companies and three executives selling Chinese-made forklifts to federal agencies under the false label of “Made in America,” according to a Justice Department release.
A federal grand jury in Denver returned an indictment on Aug. 21, charging Endless Sales Inc., Octane Forklifts Inc., executives Brian Firkins and Jeffrey Blasdel, and former executive J.R. Antczak, prosecutors said.
According to the DOJ, the defendants worked with a Chinese manufacturer and an unnamed Chinese national to falsify invoices, disguise the products’ origins and avoid more than $1 million in tariffs and duties. Then, the forklifts were marketed to agencies including the Department of War and FEMA as U.S.-made products, despite being imported from China, the DOJ said, adding that companies falsely certified compliance with the Buy America Act to secure federal contracts.
According to the release, AFOSI Special Agents worked with the Justice Department’s Antitrust Division, the Defense Criminal Investigative Service, the Army Criminal Investigation Division and several federal inspectors general to build the case.
“This indictment reflects the commitment of the Department of the Air Force to uphold integrity in public contracting and protect taxpayer dollars,” said Jason T. Hein, Director of AFOSI’s Office of Procurement Fraud Investigations. “Procurement fraud undermines trust in government and diverts resources from maintaining our national security and missions they’re meant to serve.”
The indictment also charges the companies and executives with conspiracy to commit wire fraud, wire fraud and conspiring to enter goods into the United States through false statements.
Blasdel also faces a separate charge of making false statements to the government. Each wire fraud count carries a potential 20-year prison sentence for the individuals, while the companies face fines of up to $500,000 or twice the financial harm caused, according to the Justice Department. The case is being prosecuted by the DOJ Antitrust Division’s Chicago Office, with assistance from AFOSI and other law enforcement partners.
“Great work by the AFOSI PF team and our partners in the Procurement Collusion Strike Force,” Hein said. “This investigation shows what we can accomplish together to protect the integrity of government contracting.”