Report: Former Executive of Murtha-Tied Firm to Plead Guilty to Taking Kickbacks

Published December 24, 2015

The former chief executive of a defense contractor tied to Rep. John Murtha has agreed to plead guilty to charges of taking bribes from a subcontractor, according to The Washington Post.

Richard S. Ianieri was charged in a one-count criminal information filed Monday in Pittsburgh.

The Washington Post reported Wednesday that he has agreed to admit to accepting $200,000 in kickbacks from a subcontractor - a firm identified only as "K," but which resembles Kuchera Defense Systems -- while he was an officer of Coherent Systems International Corp.

Records reportedly show that Ianieri will cooperate in a federal probe of Pentagon contracting.

In an April 2006 news release, Murtha -- a powerful Pennsylvania Democrat -- announced that Coherent and Kuchera Defense Systems were working "virtually as one company" on 14 contracts worth $30 million to develop high-tech military gear. At the time, both companies had offices in Windber, near Murtha's home base of Johnstown.

Kuchera, which has given ten of thousands of dollars to Murtha's campaign and political action committee, has been under scrutiny in recent months.

The company, owned by brothers William and Ronald Kuchera, has received $14.7 million in Murtha earmarks in the past two years. It and another company, Kuchera Industries Inc., have received $53 million in federal contracts in this decade alone.

In January, FBI agents and Pentagon investigators raided Kuchera Defense Systems' offices. No criminal charges are known to have been filed as a result. U.S. Attorney Mary Beth Buchanan in Pittsburgh has confirmed the raids related to an investigation by her office, but refused to say whether Murtha was part of the inquiry.

Dennis McGlynn, the Johnstown attorney who represents the Kucheras, told The Associated Press on Tuesday that he didn't know anything about the charge filed against Ianieri. He said he has heard nothing about any continuing investigation into the Kuchera companies or Murtha since the January raid.

A spokesman at Murtha's office in Washington, D.C., declined to comment on the charge.

Ianieri was president and chief executive officer of Coherent until it was sold to Fairfax, Va.-based Argon ST in August 2007, according to filings with the Securities and Exchange Commission. Ianieri was a vice president at Argon until last year.

Argon's CEO, Terry Collins, said in a statement that the company cannot comment on the criminal allegations because the actions happened before Argon purchased most of the assets of Coherent in August 2007.

According to Murtha's 2006 news release, Coherent and Kuchera worked together on a "sophisticated electronic precision targeting and communications system" for the Air Force. The device was being used in Iraq. Murtha said Coherent had 35 employees and the Kuchera companies 325.

In April, the Navy suspended the Kucheras and their companies for "alleged fraud" including multiple instances of incorrect charges, along with allegations of defective pricing and ethical violations. Kuchera is appealing the suspension.

Click here to read the full story in The Washington Post.

The Associated Press contributed to this report.

URL

https://www.foxnews.com/politics/report-former-executive-of-murtha-tied-firm-to-plead-guilty-to-taking-kickbacks