President of Long Island Aviation Parts Company Sentenced to 26 Months’ Imprisonment for Fraud in Supplying Airplane Parts to Defense Department through Shell Companies
Defendant Entered into Millions of Dollars of Contracts with the U.S. During Debarment by Concealing His Involvement
Earlier today, Paul Skiscim, the President of Aerospec, Inc., a company located in Kings Park, New York, was sentenced before Judge Arthur D. Spatt in U.S. District Court in Central Islip, New York, to 26 months’ imprisonment, to be followed by three years of supervised release, for his fraud in continuing to provide airplane parts to the United States Department of Defense (DoD) despite the fact that he and his company had been debarred from entering into contracts with the DoD in 2013. Skiscim was also ordered to pay restitution of $420,000 and forfeit monies and properties to the government, with a total value of approximately $1 million.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York and Leigh-Alistair Barzey, Special Agent-in Charge of the Defense Criminal Investigative Service (DCIS), Northeast Field Office.
"The defendant’s scheme not only violated the law but showed a disregard for the safety of military personnel. We will continue to work collaboratively with our law enforcement partners to successfully interdict schemes like this one,” stated Acting United States Attorney Rohde.
“The defendant’s sentencing earlier today is the direct result of a joint effort by DCIS and the U.S. Attorney’s Office, Eastern District of New York, to identify, investigate and prosecute individuals who engage in fraudulent activity targeting the DoD and seek to profit at the expense of taxpayers,” stated Special Agent-in-Charge Barzey. “DCIS will continue to partner with the U.S. Department of Justice to protect the integrity of the DoD procurement system and protect members of the U.S. military.”
According to court documents, Aerospec, Inc. had been a supplier of airplane parts to the DoD from 2003 until 2013, when the company and Skiscim were debarred after supplying the government with defective airplane parts. As Skiscim admitted in pleading guilty on September 7, 2016, to Count One of an indictment which charged fraud involving aircraft parts, he nevertheless continued to bid, contract, and supply airplane parts to the federal government following this debarment through a series of shell companies using the names of relatives and fictitious people to mask his involvement from the DoD’s Defense Logistics Agency. Since 2013, the shell companies received over $2.8 million for the supply of airplane parts.
The government’s case was prosecuted by Assistant United States Attorneys Charles P. Kelly and Robert Schumacher.
Name: PAUL SKISCIM
Residence: East Northport, NY
E.D.N.Y. Docket No. CR-16-190 (ADS)