PHILADELPHIA —The federal government alleges a New York supply company substituted items in surplus condition instead of shipping brand-new ones.
The United States of America filed a complaint on June 20 in the U.S. District Court for the Eastern District of Pennsylvania against Liberty Air Parts Inc., U.S. Supply Corp., George Onorato and Ellen Onorato alleging violation of the False Claims Act.
According to the complaint, Liberty Air Parts agreed to supply bolts, rings, knobs and rivets to the Defense Logistics Agency Troop Support-Philadelphia (DLA) in a brand-new condition. The suit states that Ellen Onorato is owner and president of both Liberty and U.S. Supply and George Onorato submitted invoices. DLA awards and administers products on behalf of departments with the Department of Defense, the suit states.
The plaintiff alleges that Liberty Air Parts supplied leftover parts without informing anyone. The plaintiff alleges DLA overpaid for surplus parts.
The plaintiff alleges Liberty Air Parts hid the scheme by falsifying records and hiding behind a sham corporation.
The plaintiff is seeking to treble the damages it sustained, civil penalties of between $10,781 and $21,563 for each false claim, attorney fees and court costs. The plaintiff is represented by U.S. attorneys William M. McSwain, Gregory B. David, Michael S. Macko and Charlene Keller Fullmer in Philadelphia.
U.S. District Court for the Eastern District of Pennsylvania case number 2:19-CV-02681