Two Denver-area companies and three of their executives have been indicted by a federal grand jury for allegedly defrauding the U.S. government in connection with sales of forklifts and evading tariffs on imported equipment.
According to court documents, Endless Sales Inc. (Endless), Octane Forklifts, Inc. (Octane), current executives Brian Firkins and Jeffrey Blasdel, and former executive J.R. Antczak are accused of conspiring to import forklifts from China, concealing their origin, and selling them to federal agencies while falsely claiming they were made in the United States. The indictment also alleges that the defendants worked with an unnamed Chinese national and manufacturer to create false invoices undervaluing the forklifts’ cost, resulting in more than $1 million in lost tariffs, duties, and fees for the government.
Firkins, Blasdel, and Antczak face additional wire fraud charges, while Blasdel is also charged with making false statements to the government.
Attorney General Pamela Bondi stated: “Defrauding the United States to profit from goods made in adversarial nations like China undermines our economic and national security. The Justice Department is committed to protecting American taxpayer dollars, defending our national security against those who would undermine it, and holding accountable anyone who pursues illegal profits over our country.”
Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division said: “Defendants fraudulently hid the origins of the products they sold the government and conspired to avoid paying tariffs. The Antitrust Division’s Procurement Collusion Strike Force and its law enforcement partners will continue to prosecute and hold accountable those who seek to fraudulently obtain taxpayer funds.”
Acting Inspector General Steve Stebbins of the Department of Defense commented: “Today’s indictments are the result of the collaboration among the Defense Criminal Investigative Service (DCIS) and our law enforcement partners to hold accountable those who seek to violate America’s trade laws to enrich themselves. DCIS remains committed to safeguarding the integrity of the DoD contracting process.”
Deputy Inspector General Robert Erickson from the U.S. General Services Administration Office of Inspector General noted: “Federal contractors are expected to be honest in their dealings with the government. These indictments demonstrate our special agents’ commitment to pursue allegations of procurement fraud and protect the government’s supply chain.”
Inspector General Joseph V. Cuffari from DHS OIG added: “My office is committed to protecting taxpayer dollars and the integrity of federal procurement. Octane Forklifts, Endless Sales, and their executives allegedly engaged in a brazen scheme to sell rebranded Chinese made forklifts to FEMA and the Department of Defense , all while falsely certifying their compliance with the Buy America Act. It is especially reprehensible that this alleged fraud involved a FEMA contract using disaster funds. I commend our law enforcement partners, the U.S. Attorney’s Office for the District of Colorado, and DOJ’s Antitrust Division for their steadfast commitment to holding these individuals accountable.”
Director Jason T. Hein from USAF Office of Special Investigations said: “This indictment reflects the commitment of the Air Force to uphold integrity in public contracting and protect taxpayer dollars. Procurement fraud undermines trust in government and diverts resources from maintaining our national security and missions they’re meant to serve. We will continue to pursue accountability wherever public funds are at risk.”
Special Agent in Charge Derek Tilton from Army Criminal Investigation Division stated: “Intentionally violating the Buy America Act to defraud the US Government isn’t just a legal issue; it is a demonstration of complete disregard for US law and safety and security of our US military. The US Army will not tolerate contract fraud and will vigorously pursue all available legal recourse.”
Special Agent in Charge Anthony Heddell with VA OIG Western Field Office said: “This indictment demonstrates VA OIG’s commitment to protecting taxpayer funds and ensuring companies who do business with government are held accountable. The VA OIG will continue working with law enforcement partners for program integrity.”
The charges include conspiracy under 18 U.S.C § 1349 as well as individual counts under 18 U.S.C § 1343 for wire fraud; each count carries up to 20 years imprisonment plus fines up $250,000 per individual or $500,000 per corporation if convicted on wire fraud counts; other counts related specifically carry maximum penalties including prison time or higher fines depending on corporate gain or loss calculations.
Sentencing would be determined by a federal district court judge considering statutory factors.
The case is being prosecuted by attorneys from DOJ's Chicago Antitrust Division office following investigations involving multiple agencies such as Army CID; DCIS; Air Force OSI; GSA OIG; DHS OIG; VA OIG; DCAA—with support from Westminster Police Department.
In November 2019, DOJ established its Procurement Collusion Strike Force (PCSF) as a joint effort across agencies aimed at combating antitrust crimes affecting governmental contracts at all levels—federal through local—and offers reporting channels via www.justice.gov/procurement-collusion-strike-force.
All defendants are presumed innocent until proven guilty beyond reasonable doubt.
