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June 6, 2014

Feds drop CTC probe

Johnstown company cleared of wrongdoing

JOHNSTOWN — The multiyear investigation into Johnstown-based Concurrent Technologies Corp. has ended, according to an official press release from the company.

The company was cleared of any wrongdoing, the release states, and David Hickton, U.S. attorney for the Western District of Pennsylvania, has closed the case.

“CTC fully cooperated with the government throughout this matter and produced substantial records for review,” stated President and CEO Ed Sheehan Jr. in the release.

“We are extremely pleased with the government’s decision and appreciate this matter has been brought to a close. CTC has always been and will continue to be a federally compliant contractor.”

Agents from the Department of Defense led the September raid, executing federal search warrants that have remained sealed since the investigation began. No further details as to the nature of the search were made available. However, the same agencies that shut CTC for a day last year have been looking into companies and individuals connected to the late U.S. Rep. John Murtha for years.

A similar raid happened in 2009 at the Windber-based offices of Kuchera Industries, Kuchera Defense Systems and the homes of William and Ronald Kuchera. The Kuchera brothers pleaded guilty to major fraud against the government and conspiracy. They were sentenced to 18 months of house arrest and five years of probation.

Both CTC and the Kuchera companies were closely linked to Murtha. In 2011, nonprofit watchdog group Citizens for Responsibility and Ethics in Washington, or CREW, called for the release of investigation records in which Murtha was involved. In 2008, the Justice Department subpoenaed CTC records.

The department later prosecuted former defense lobbyist Paul Magliocchetti for diverting more than $380,000 in campaign contributions to Murtha and other House members.

It was found that Magliocchetti’s firm was influencing politicians who earmarked government money for favored companies. He was sentenced in 2011 to 27 months in federal prison.

Throughout those investigations and last year’s raid, no CTC officials were ever criminally charged.

According to Friday’s CTC release, the company was named one of the world’s most ethical companies by Ethisphere Institute in 2012 and 2013.

“CTC is pleased to have this matter behind us,” Sheehan stated.

Justin Dennis is a multimedia reporter for The Tribune-Democrat. Follow him on Twitter at @JustinDennis.

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