Investigations

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Colorado Flight Training Company Settles Over Contract Dispute Involving Falsely Supported Travel Claims

On Aug 1, the U.S. Attorney’s Office for the Western District of Oklahoma effected a final settlement with CAE Inc./Greyrock Flight Training (CAE/Greyrock) for $10,000 stemming from claims for unauthorized travel costs. In September 2002, FAA awarded a $218,950 contract to CAE/Greyrock, located in Westminster, CO, to provide flight training instructions using a flight simulator in Colorado. After losing their lease for the Colorado simulator, and selecting an alternate site in Florida, the CAE/Greyrock training center manager, Monty Thompson, and instructor, Zachary Paschal, submitted invoices for about $7,800 associated with travel to and from Florida, costs not allowable under the contract. The invoices were never paid by FAA, and the contract was terminated for default in September 2003. The negotiated settlement of $10,000 is to be offset from a remaining balance of $37,184 on the contract owed to CAE/Greyrock by FAA.