Zephyr Aviation LLC, a company based in Mineral, Virginia, and its owners Frederick Credno Jr. and Frederick W. Credno III have agreed to pay $3,901,000 to resolve allegations that they violated the False Claims Act by submitting inflated invoices for aviation contracts with the Department of Homeland Security (DHS).
The Justice Department alleged that Zephyr and its owners overcharged DHS by requesting payment for flight hours that were greater than the actual times flown by subcontracted aircraft operators. These allegations relate to contracts between 2022 and 2025 under which Zephyr chartered flights to transport individuals in Customs and Border Protection (CBP) custody.
Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division stated: “Companies that do business with the government are expected to charge the United States accurately for the goods and services they provide. The Department will continue to pursue those who knowingly overcharge the government at the expense of the American taxpayers.”
Inspector General Joseph V. Cuffari of DHS Office of Inspector General commented: “With this settlement, we are sending a clear message that committing fraud in federal contracts will be met with significant sanctions against those defrauding the American taxpayer. I commend our law enforcement partners and the Department of Justice’s Civil Fraud Section for tirelessly pursuing this investigation to hold these individuals accountable.”
Acting Assistant Commissioner Robert B. Danley of CBP Office of Professional Responsibility said: “This settlement showcases CBP OPR’s ongoing commitment to accountability and integrity. Today’s settlement reaffirms our duty to protect taxpayers and hold accountable those who take advantage of our government programs.”
The resolution was achieved through coordinated work among several agencies including the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, U.S. Customs and Border Protection, and DHS Office of Inspector General. Trial Attorney Daniel W. Kastner handled this matter for the Fraud Section.
It was noted that these claims are only allegations; there has been no determination of liability.
