Robert A. Riddell, Kickback Scheme, Florida 2011

A former owner and operator of a Florida-based airline services company has been caught up in a high-stakes kickback scheme, authorities announced today.

Robert A. Riddell, the former owner and operator of an airline security and ground services company, pleaded guilty to felony charges filed on September 29, 2011 in U.S. District Court in Fort Lauderdale, Fla.

The charges against Riddell stem from a scheme in which he made kickback payments to Wayne E. Kepple, the former vice president of ground operations for Ryan International Airlines, while also splitting the proceeds of fraudulent invoices with him.

Ryan International Airlines, a charter airline company located in Rockford, Ill., provides air passenger and cargo services for corporations, private individuals, professional sports teams and the U.S. government, including the U.S. Department of Defense, the U.S. Department of Homeland Security and the U.S. Marshals Service.

The scheme, which began in March 2006 and continued through at least August 2009, involved Riddell paying Kepple more than $330,000 in kickbacks, including payments based on fabricated invoices submitted by Riddell’s company to Ryan International Airlines.

Riddell was charged with one count of conspiracy to commit wire fraud and honest services fraud, and one count of wire fraud, each carrying a maximum sentence of 20 years in prison and a $250,000 criminal fine for individuals.

The plea deal marks the third to arise out of the Antitrust Division’s ongoing investigation into fraud and anticompetitive conduct in the airline charter services industry.

The investigation is being conducted by the Antitrust Division’s Atlanta Field Office and the National Criminal Enforcement Section, with assistance from the U.S. Attorney’s Office for the Southern District of Florida.

Anyone with information concerning anticompetitive conduct in the airline charter services industry is urged to call the Antitrust Division’s Atlanta Field Office at 404-331-7100 or visit www.justice.gov/atr/contact/newcase.htm.

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