EX-CEO OF DALLASTOWN-BASED DEFENSE CONTRACTOR
PLEADS GUILTY TO FRAUD CHARGES

Martin C. Carlson, Acting United States Attorney for the Middle District of Pennsylvania, announced today that Charles E. Atwood, II, 61, Pompano Beach, Florida, pleaded guilty to causing Gichner Shelter Systems, Inc., to file false cost and pricing certifications with the government in connection with U.S. Department of Defense contracts awarded to Gichner between 1997 and 2004. Gichner is headquartered in Dallastown, Pennsylvania, and supplies tactical shelters, containers, and subsystems to the U.S. Armed Forces. These products are primarily used as mobile operations centers for high-value communications and IT equipment. Atwood was President and CEO of Gichner until August 2004.

Atwood admitted today that he caused Gichner to file 10 false cost and pricing certifications with the government. As a DOD contractor, Gichner was required to certify that its costs were accurate, complete, and free of any conflicts of interests that could impact those costs. Atwood, however, failed to disclose a conflict of interest he had because of his part-ownership of B & B Engineering Group, Inc., a Maryland-based business that marketed Gichner's products and from which he received substantial benefits. Atwood's failure to reveal his financial relationship with B & B caused Gichner officials to file the false certifications which indicated there were no conflicts of interests.

“It is unfortunate that even during times when our military personnel are fighting overseas, a few individuals continue to attempt to defraud the Department of Defense at the expense of the U.S. taxpayer and our soldiers,” said Ed Bradley, Special Agent-in-Charge, Defense Criminal Investigative Service. “This plea is the result of the ongoing commitment of the DCIS to aggressively investigate these types of schemes to defraud and support their prosecution to the fullest.”

Atwood faces up to five years’ imprisonment and up to $250,000 in fines as a result of the guilty plea. The case was investigated by the Department of Defense, Office of Inspector General--Defense Criminal Investigative Service, and the Defense Contract Audit Agency, and is assigned to Assistant U.S. Attorney Bruce Brandler for prosecution.

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