Investigations

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Pennsylvania Company Owner Found Guilty in Philadelphia Airport Concession Disadvantaged Business Enterprise (DBE) Fraud Scheme

On June 14, following a seven-week trial in Philadelphia, PA, Shamsud-din Ali, owner of Keystone Information and Financial Services (KIFS), was found guilty on multiple counts of racketeering and fraud related to a cellular phone tower concession contract at the Philadelphia International Airport. The five-year contract, (valued over $1 million and containing DBE requirements subject to FAA regulation) was awarded by the City of Philadelphia in August 2001 to AAT Communications Corp. (AAT). AAT subcontracted with KIFS, a DBE. Ali received $1,700 a month from Richard Meehan, a former AAT manager, even though Ali performed no services on the contract. Ali kicked back $500 of each payment to Meehan for his assistance in creating and maintaining the false appearance that KIFS was the minority-owned subcontractor, and with developing other subcontract opportunities for KIFS that permitted the firm to receive commissions without performing any work.

Meehan pled guilty in March 2005, admitting to receiving a total of $7,000 in kickbacks from Ali. Sentencing is set for July 1, 2005. Sentencing for Ali is scheduled for September 19, 2005. The investigation was conducted jointly with the FBI, the IRS, and the Department of Education.