A former military contractor has been found guilty of major fraud charges in a high-stakes trial in Danville, Virginia.
William R. Whyte, 72, of Ontario, Canada, was found guilty yesterday evening in the United States District Court for the Western District of Virginia in Danville of all federal charges levied against him, Acting United States Attorney Rick A. Mountcastle announced.
The charges against Whyte include three counts of major fraud against the United States, three counts of wire fraud and three counts of false claims.
According to evidence presented at trial, Whyte was the owner and chief executive officer of Armet Armed Vehicles, Inc. Armet entered into a $4.8 million contract in April 2006 to provide the Department of Defense with 24 armored vehicles for use in Iraq. In June 2006, Armet entered into a second contract, valued at $1.6 million, to deliver an additional eight armored vehicles.
The contracts included specific requirements for the armoring of the vehicles, including that each vehicle be reinforced to a standard at which an armor-piercing bullet could not penetrate the passenger compartment and ceiling. In addition, the contracts required the undercarriage of each armored truck have mine plating protection that could withstand explosions underneath the vehicles. Finally, the contracts required the armored vehicles to have run-flat tires, so they could continue to operate should their tires be shot out or otherwise damaged.
Despite the requirement in the contract that the first 24 armored gun trucks be delivered in 2006, Armet failed to meet the deadline, delivering only 12 vehicles by the end of the year. The remaining 12 vehicles were not delivered until 2007, and were found to be substandard and defective.
The investigation into Whyte’s company was led by the Defense Criminal Investigative Service, with assistance from the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Western District of Virginia.
Key Facts
- State: Virginia
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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