The Tribune Democrat, Johnstown, PA

Local News

September 11, 2013

Feds raid CTC sites

Details scarce in probe

JOHNSTOWN — Just six months after it was recognized as one of the 145 most ethical companies in the world, a Johnstown-based defense contractor was raided by federal agents Tuesday.

Concurrent Technology Corp. facilities in Richland Township remained under lockdown throughout the day Tuesday as federal investigators executed search warrants at the Johnstown Industrial Park buildings.

Operations will resume as normal today, with little information coming out on the probe.

“Our offices are now open and the company will continue its renowned service to our clients and partners,” spokeswoman Mary Bevan said just after 6:30 p.m. Tuesday in an emailed press release.

“We have no information that any of the company’s employees have violated the law, acted inappropriately, or done anything that would besmirch our position as one of the world’s most ethical companies,” she continued. “We will continue to cooperate with government investigators in any requests they may have of the company.”

The brief press release marked the end of a long day for CTC leaders, which began when employees were arriving for work.

“All I know is that employees showed up at work today and there were federal investigators at our offices,” Bevan said Tuesday morning.

“The investigators were turning employees away, saying these facilities are shut down for several hours.”

Department of Defense agents were leading the investigation, executing federal search warrants.

“We don’t know the nature of it,” Bevan said. “They are meeting with our security officers now.”

David J. Hickton, U.S. Attorney for the Western District of Pennsylvania, issued a statement today in response to media inquiries.

“Special agents from the Defense Criminal Investigative Services, Internal Revenue Service-Criminal Investigation and Air Force Office of Special Investigations executed search warrants at two locations in Johnstown, Pa., – 128 Industrial Park and 100 CTC Drive – as part of an ongoing federal investigation,” Hickton said.

The Industrial Park Road building is CTC’s Environmental Technology facility while the CTC Drive location is the company’s Systems Technology building.

Federal agents remained stationed through the day in cars at each entrance to the CTC facilities, with Richland Township police on duty.

Hickton’s office would not say when the investigation began or what was listed on the search warrants.

“The search warrants are sealed, and I can’t say anything beyond that,” spokeswoman Margaret Philbin said in an emailed response.

The Tribune-Democrat attempted to reach CTC President and CEO Edward J. Sheehan Jr. and several of its board members Tuesday.

“I can’t talk to you right now,” Sheehan said when reached by phone Tuesday morning.

Board member Conway B. Jones Jr. of Oakland, Calif., said he was aware of the investigation prior to Tuesday’s raid. He referred all other questions to Bevan.

“We have a public relations officer,” Jones said. “It has been our policy for matters like this that all communications are directed to her through the office.”

Messages left for CTC Chairman Howard M. Picking III and board members Mark Pasquerilla, E. Jeanne Gleason, Robert J. Eyer and founder Daniel R. DeVos were not returned.

In March, CTC was named one of the World’s Most Ethical Companies by Ethisphere Institute, a leading international think tank.

“The World’s Most Ethical Company recognition highlights companies that outperform industry peers when it comes to ethical behavior,” Ethisphere Institute said in a press release.

“These companies truly embrace ethical business practice and demonstrate industry leadership, forcing peers to follow suit or fall behind.”

CTC is incorporated as a nonprofit company with the primary purpose of doing research and development, primarily for the government, its website says.

The nonprofit status is appropriate because its research is in the public interest, the website says.

Randy Griffith covers the defense industry for The Tribune-Democrat. Follow him on Twitter at twitter.com/photogriffer57.

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