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Exec gets prison for Ryan International kickback scheme

By Palm Beach Business.com

WEST PALM BEACH — The owner of a Pasco County air service company who pleaded guilty to paying kickbacks to a Lake Worth resident who handled contracts for a major charter airline company will be heading to prison.

Robert A. Riddell of Wesley Chapel was sentenced to two years in prison and ordered to pay $131,540 in restitution in federal district court in West Palm Beach, the Justice Department announced Friday.

According to court records, Riddell operated an air services company in Pasco County.  In 2005, Wayne Kepple, a Lake Worth resident working as vice president of ground operations for Ryan International Air, approached Riddell about providing a variety of services for the charter airline, including security in Europe.

Ryan, based in Rockford, Ill., Ryan provides air passenger and cargo services for corporations, sports teams, and the United States government. In fact, a significant portion of Ryan’s business transporting personnel and cargo for the Department of Defense, Homeland Security, and the U.S. Marshals service.

Court records state that Riddell paid kickbacks to Kepple in exchange for the service contracts with Ryan. Riddell, in some cases, billed Ryan for work never done; Kepple would approve the invoices, and Riddell would split the proceeds with Kepple. In cases where Riddell’s firm actually did perform the work, the Wesley Chapel resident again would split the money with Kepple.

It’s unclear from court documents exactly how much money Riddell received from Ryan but the total includes $134,000 for work never done; Kepple, received $330,000 in kickbacks over the three years the scheme was in place.

Last fall, Riddell pleaded guilty to one count each of wire fraud and conspiracy to commit wire fraud in federal district court in West Palm Beach. He could have been sentenced to as much as 20 years in prison plus $250,000 in fines on each charge.

Kepple, the Lake Worth resident, pleaded guilty on Nov. 4 and awaits sentencing. Two other men, David A. Chaisson and James E. Murphy, have received prison sentences for making kickbacks to Kepple in return for contracts with Ryan.

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