On August 25, 2016, six company officials from Explo Systems, Inc. (Explo) were indicted in U.S. District Court, Shreveport, Louisiana, for defrauding the Federal Government on a munitions demilitarization contract with the U.S. Army. Explo owner David Fincher, owner David Smith, vice president of operations William Wright, program manager Kenneth Lampkin, traffic and inventory control manager Lionel Koons, and director of engineering and environmental control Charles Callihan were charged with conspiracy, false statements, and wire fraud.
Explo operated a bomb demilitarization and explosives recycling facility within the Louisiana National Guard facility located at Camp Minden, Louisiana. The indictment alleged that the defendants caused the improper storage and subsequent transportation of reactive hazardous waste to unpermitted nonhazardous waste landfills in Louisiana and Arkansas to make room for storage of M6 propellant at Camp Minden, made false statements to the Army’s Joint Munitions Command (JMC) to procure and maintain the M6 demilitarization contract, caused the improper and unsafe storage of demilitarized M6 propellant and other explosive material at Explo’s Camp Minden facility, obstructed and impeded Government inspections and examinations of areas of the facility where the explosive materials were improperly stored, caused third parties to sign off on end user certificates (EUC) as purchasers when in fact no sales had occurred, caused false EUCs containing forged and fabricated signatures to be submitted to the JMC, and made false statements after the October 15, 2012, explosion to Government officials and others in order to conceal their illegal conduct and prevent discovery of the improperly stored M6.
DOT-OIG conducted this investigation jointly with the Environmental Protection Agency-Criminal Investigation Division (CID), U.S. Army Criminal Investigation, Department of Defense Criminal Investigative Service, Federal Bureau of Investigation (FBI), and LSP-Emergency Service Unit.
Note: Indictments, informations, and criminal complaints are only accusations by the Government. All defendants are presumed innocent unless and until proven guilty.