U.S. Attorney closes probe of defense contractor CTC without charges

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The U.S. attorney's office said Friday that it has closed an investigation of a Johnstown-area defense contractor raided last year by the Department of Defense and the IRS, and will not file any charges.

Prosecutors said Concurrent Technologies Corp., a nonprofit established by the late U.S. Rep. John Murtha, D-Johnstown, "fully cooperated" with the probe.

The U.S. attorney's office refused further comment.

Federal agents in September swept into CTC's Systems Technology building on CTC Drive and the Environmental Technology facility on Industrial Park Road.

CTC, which has facilities in 12 states, has 568 employees in Johnstown. None of the other facilities was raided.

The agents wouldn't say why they were there, but they came from Defense Criminal Investigative Services, which handles fraud; the Air Force Office of Special Investigations; and the criminal investigation division of the IRS.

Prosecutors said at the time only that the searches were part of an ongoing investigation.

CTC said it had provided federal authorities with "substantial records for review" and was happy the investigation is over.

"We are extremely pleased with the government's decision and appreciate that this matter has been brought to a close," company president and chief executive Edward Sheehan said in a statement. "CTC has always been and will continue to be a federally compliant contractor."

Last year's raid had come as another blow to Johnstown and Murtha's legacy, which had been tarnished by federal investigations into his ties to defense contractors.

As the chairman of the powerful House Appropriations Subcommittee on Defense, he directed millions over the years to defense firms in his district.

Citizens for Responsibility and Ethics, a Washington watchdog group, has sued the Justice Department for information about Murtha and defense contractors with links to him, including CTC.

Murtha, who died in 2010, had set up CTC in 1987 as a nonprofit research center for metalworking and helped guide some $1 billion in defense earmarks to the enterprise.

Torsten Ove: tove@post-gazette.com or 412-263-1510. First Published June 6, 2014 2:26 PM

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