Louisa aviation company to pay nearly $4 million to resolve Department of Homeland Security overbilling accusations

LOUISA COUNTY, Va. (WRIC) -- An aviation company in Louisa County and its owners agreed to pay nearly $4 million to resolve accusations that they overcharged the U.S. government, specifically the Department of Homeland Security (DHS) -- violating the False Claims Act -- according to the Department of Justice (DOJ).

According to a Nov. 14 release from the DOJ, Zephyr Aviation LLC, located in Mineral, and its owners Frederick Credno Jr. and Frederick W. Credno III, agreed to pay $3.9 million following allegations by submitting inflated invoices for aviation contracts to the DHS.

This follows contracts with DHA under which Zephyr allegedly transported people in Customs and Border Protection (CBP) custody between 2022 and 2025.

Zephyr subcontracted with aircraft operations to actually fly the planes. The contractor submitted invoices to CBP supposedly based on the required flight times, per the DOJ. The U.S. government said Zephyr inflated those invoices by billing for more flight hours than were actually flown, resulting in the violation of the False Claims Act -- a law that penalizes people or companies for defrauding the government.

“Companies that do business with the government are expected to charge the United States accurately for the goods and services they provide,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department will continue to pursue those who knowingly overcharge the government at the expense of the American taxpayers.”

“This settlement showcases CBP OPR’s ongoing commitment to accountability and integrity,” said Acting Assistant Commissioner Robert B. Danley of the Customs and Border Protection (CBP) Office of Professional Responsibility. “Today’s settlement reaffirms our duty to protect taxpayers and hold accountable those who take advantage of our government programs.”