Ex-Army command project manager pleads guilty in Ibis Tek scandal

A former civilian project manager at a U.S. Army command in Michigan admitted Thursday to receiving more than $1 million in illegal gratuities from the coowners of a Butler County company that had a contract with the Army for Humvee window kits.

Anthony Shaw, 55, of Rochester Hills, Mich., pleaded guilty in federal court in Pittsburgh to demanding and receiving the payments from Thomas Buckner, former co-owner of Ibis Tek LLC with his brother John.

Both brothers pleaded guilty Wednesday to defrauding the Army of some $6 million by inflating their company’s costs for making emergency window escape kits for Humvees. The brothers and their chief financial officer, Harry Kramer, created a dummy corporation to buy cheap window kits from a Chinese firm and then bill the U.S. military for more than triple the cost.

Mr. Kramer pleaded to his role in preparing fake invoices in support of the scheme.

All three pleaded to tax evasion, as well, as did Mr. Shaw for not reporting the gratuities he received on his income taxes.

Another member of the conspiracy, David Buckner, the owner of a motorcycle shop in Michigan, also pleaded guilty Thursday to impeding the IRS by acting as an intermediary in funneling the payments from the Buckner brothers to Mr. Shaw. David Buckner is not related to Thomas and John Buckner.

Mr. Shaw was the deputy project manager responsible for overseeing government contracts for combat vehicles at the U.S. Army TankAutomotive and Armaments Command in Michigan.

The U.S. Attorney’s office said he received the illegal gratuities from Thomas Buckner in the form of checks, cash and wire transfers paid through David Buckner’s cycle shop, D&B Cycle Parts and Accessories. The money was channeled through the shop to conceal its origin, prosecutors said.

Mr. Shaw also pleaded to tax evasion for 2009 and 2010 and to lying when he denied that he had socialized with the Buckners or traveled at their expense.

As part of their plea, the Buckners admitted that they took illegal business deductions for the payments they made to Mr. Shaw.

All of the defendants will be sentenced in October by U.S. District Judge Arthur Schwab.

The Defense Criminal Investigative Service, which investigated the case along with the IRS, said the prosecution represents the Defense Department’s commitment to the integrity of the procurement process.

“Fraudulent schemes, such as those identified in this successful investigation, endanger U.S. military forces, waste valuable resources and erode public confidence,” said Leigh-Alistair Barzey, special agent in charge, DCIS Northeast Field Office in Philadelphia. Torsten Ove: tove@postgazette.com.