Back in January, agents from the FBI, the IRS and the Defense Criminal Investigative Service searched the office of Kuchera Industries and Kuchera Defense Systems, as well as the homes of the firms’ founders. These companies reportedly received over $100 million in earmarks, thanks to Murtha’s efforts.
While it was unclear whether Murtha was a target of the investigations, the heightened scrutiny of some of his closest donors including Kuchera and PMA allies signals that the Feds may be inching closer to the 35-year-member of Congress, who is a constant nominee for the Congressional Porker of the Year.
Eventually the former chief executive of Kuchera and buddy of John Murtha, was charged by federal prosecutors with taking about $200,000 in kickbacks from a subcontractor. Kuchera, which has given ten of thousands of dollars to Murtha’s campaign and political action committee.
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Because of the kickback allegations Kuchera has been suspended from receiving Navy Contracts.
Kuchera Defense Systems Inc., of Windber, was suspended Dec. 22 for allegedly paying off Richard Ianieri. Ianieri is awaiting sentencing Feb. 23 in U.S. District Court in Pensacola, Fla. after pleading guilty in July to fraud stemming from a research contract at Eglin Air Force Base in Florida.
Kuchera’s attorney, Dennis McGlynn, said Kuchera is fighting the suspension and that it is based on information the Navy had in August — when the Navy previously took Kuchera off the Excluded Parties List System, a black book of contractors suspended from government work.
Kuchera was first suspended in April for overcharging the Navy and other ethical violations, but McGlynn said the company resolved those problems to the Navy’s satisfaction.
Navy spokesman Lt. Cmdr. Victor Chen confirmed that, but said the new suspension is based on separate circumstances: kickbacks Kuchera paid to Coherent Systems International, a company co-founded by Ianieri.
Kuchera Defense Systems and Coherent have been awarded over $50 million apiece in defense work in this decade, according to http://www.fedspending.org, a Web site on federal contracting.
In July, Ianieri testified about getting the kickbacks to steer $650,000 worth of work to Kuchera from an $8.2 million congressional earmark. Ianieri testified “there was political and earmark pressure” to shift the money — though he didn’t say who applied such pressure.
Ianieri’s firm had gotten the earmark after hiring a lobbying firm that employed Murtha’s brother. The Pennsylvania Democrat’s office refuses to say whether the congressman sponsored the earmark.
The criminal charges against Ianieri were first filed in Pittsburgh, where the U.S. Attorney’s Office has acknowledged an investigation stemming from a January raid of Kuchera’s offices.
Spokeswoman Margaret Philbin said Thursday that federal prosecutors in Pittsburgh have no comment on that investigation or the latest suspension.
A spokesman for Murtha also declined to comment.
“This is an issue between Kuchera Defense and the U.S. Navy. It does not involve our office,” Murtha spokesman Matthew Mazonkey said.