Malvern firm accused of bilking Phila. out of $500,000

Posted: May 21, 2014

A Chester County company was charged Monday with defrauding Philadelphia of more than $500,000 through inflated billings for unapproved products, federal prosecutors said.

Airmatic Inc. of Malvern, which had contracts with the city to supply industrial products and repair parts, is charged with one count of mail fraud.

The company was charged in an information, which generally indicates a defendant is expected to plead guilty. Airmatic faces a maximum sentence of five years' probation, court-ordered restitution, a fine of $500,000 or twice the company's alleged illegal profit, and a $400 special assessment.

From January 2007 until August 2012, the company allegedly submitted fraudulent billings and made an inflated profit of $556,633.03, prosecutors said.

In an example provided in the information, the company was contracted to provide one bearing assembly.

The company instead provided 12 asphalt rakes, for which it was not contracted, and billed the city $1,104 and claimed it had supplied the bearing assembly, prosecutors said.

Airmatic's own cost for each rake was $46.99, about half the price it charged the city, prosecutors said.

The company had no comment, according to a woman answering the phone at Airmatic.



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