Investigations

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Guilty Pleas in Avionics Equipment Repair Kickback Case

Summary

Timothy Couch pleaded guilty in US District Court in Ft. Worth, TX, to wire fraud for involvement in a scheme to defraud Kollsman Inc., of New Hampshire. Couch, the Vice President of RTS Services, Inc. (RTS) located in Hurst, TX, and two co-defendants were previously charged by a Federal grand jury for engaging in a fraudulent scheme whereby RTS paid an authorized repair station for performing services on Kollsman avionics equipment but then overbill Kollsman. Couch would authorize these overcharges and receive half of the overpayment. Some of these inflated bills were associated with repairs of Coast Guard and FAA avionics equipment. Couch has subsequently been suspended from Federal contracting as a result of the charges, and his co-defendants are awaiting trial. OIG investigated this case with the FBI and the Defense Criminal Investigative Service.