Former ElectraStor Chief Executive Officer Pleads Guilty to Fraud Charges
On October 20, 2010, Michael Armitage, former CEO of EV Worldwide LLC (EVW), Pittsfield, Massachusetts, pled guilty to a series of frauds and attempts to avoid paying taxes, lying to financial institutions and federal authorities, including endeavoring to obstruct a DOT/OIG audit and making a false claim on a Federal Transit Administration (FTA) project.
EVW and its wholly-owned subsidiary ElectraStor LLC received funding from the FTA through the Pioneer Valley Transit Authority (PVTA) to develop a nickel-hydride battery to power a bus. EVW received approximately $4.2 million in FTA funds via Congressional earmarks through PVTA between 2000 and 2006. A 2006 DOT/OIG audit indicated that EVW had submitted fraudulent invoices for ineligible and questionable expenses totaling $703,000. Mr. Armitage lied to and attempted to obstruct auditors during the course of the DOT/OIG audit.
This investigation was conducted jointly with IRS-CID with assistance from the Defense Contract Audit Agency (DCAA). Sentencing is scheduled for April 7, 2011.
For more information, please click on the link above to view the press release from the USAO District of Massachusetts - DOJ Press Release.