ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, June 12, 1996 TAG: 9606120065
SECTION: CURRENT PAGE: NRV-2 EDITION: NEW RIVER VALLEY
DATELINE: BLACKSBURG
SOURCE: LISA K. GARCIA STAFF WRITER
Former employees of Environmental Systems & Technologies Inc. told federal authorities that they were ordered by the company president to falsify time cards and inflate charges on government contracts, according to an affidavit filed in U.S. District Court in Roanoke.
David Paxton, attorney for Environmental Systems, said the company - a consultant and software developer for the ground water and air modeling industries - fully cooperated with investigators and turned over copies of all billing records. The records were dated from Jan. 1, 1992, until now, according to the search warrant.
"They are continuing to operate and once the investigation is complete the company is sure that [authorities] will find no wrongdoing on the part of the company," Paxton said.
Agents from the U.S. Environmental Protection Agency seized computer files and other materials last Thursday from Environmental Systems and the home of John C. Parker, company president. Parker refused to comment.
Special agent Lawrence Valett from the EPA, who executed the search warrants, directed inquiries to Assistant U.S. Attorney Rich Lloret in Abingdon. Lloret said no charges have been filed.
Paxton called the employees listed in the affidavit "disgruntled."
The affidavit said former employees alleged that Environmental Systems overcharged the EPA by falsifying employee time cards and using them to prepare false invoices for billing.
The investigation started in May 1995 after the EPA received a tip alleging that Environmental Systems submitted false bills that included "inflated hours, clients billed at higher than actual wage rates, student interns billed at higher professional wage categories and the billing of staff engineers towards projects they did not work," according to the affidavit.
The affidavit states that investigators found out later that the tip was given by Doug Garnett-Deakin, former Environmental Systems sales manager. Garnett-Deakin could not be reached for comment.
Eight employees and their statements are listed in the affidavit. In each case, the former employee recalled instances where the company president, Parker, told them to increase hours on time cards or bill for hours the employee did not work on a certain project. One employee said he was asked to do this "daily."
Authorities said the investigation is ongoing.
LENGTH: Short : 50 linesby CNB