Million dollar fine imposed on company that avoided cargo screening laws

2012-02-10 08:43 AM
By: Mark Rockwell

In what federal authorities say is the largest penalty ever assessed by the TSA against a cargo company for intentional security violations, an air freight company will pay a $1 million civil fine and three employees face conspiracy charges.

OHL Solutions, Inc., formerly called ActivAir, Inc., agreed to the $1 million civil fine and other remedial steps for shirking its responsibility to screen cargo for explosives that were destined for passenger aircraft prior to December 2010, said U.S. Attorney for the Southern District of Indiana, Joseph Hogsett on Feb. 8. The charges follow a lengthy investigation by TSA, he said.

“When it comes to national security, there is no room for error, and we have no tolerance for shortcuts,” Hogsett said. “This record-setting fine, and the important corrective actions taken by the company, underscore our dedication to ensuring the safety of all those who travel through America’s airports.”

The U.S. Attorney’s Office alleged that before December 2010, employees working for the New York-based company’s Indianapolis facility engaged in a systemic pattern of record-keeping violations by failing to properly screen for explosives 100% of air cargo as required by their security program. Employees are alleged to have continued to certify that air cargo had been screened and later shipped on passenger aircraft.

As a result of the TSA investigation, three Indianapolis residents, Andrew Barnes, 32, Brian Vanhandel, 31, and Mitchell Totty, 26, have each agreed to plead guilty to charges of conspiracy to commit federal reporting and recordkeeping violations, said Hogsett.

The charges and fines against ActivAir are based on the federal Implementing Recommendations of the 9/11 Commission Act that 100% of all cargo transported on passenger aircraft be screened for explosives as of August 1, 2010. In order to achieve this 100% requirement, TSA developed the Certified Cargo Screening Program (CCSP) which enables freight forwarders and shippers to pre-screen cargo prior to arrival at the airport.

The location of this pre-screening is normally at a Certified Cargo Screening Facility (CCSF). ActivAir was certified by TSA to screen and ship cargo as a CCSF on or about March 19, 2009, said Hogsett.

TSA has over 500 inspectors throughout the country to ensure compliance with air cargo laws and regulations. The inspectors regularly, continually, and rigorously audit facilities to ensure compliance with screening regulations. If any violations are found, TSA takes immediate action, which can include both civil and criminal penalties, he said.

“Air cargo is more secure today than it has ever been with mandatory screening in place for passenger aircraft,” said TSA Assistant Administrator for Transportation Sector Network Management John Sammon. “Ensuring that all parties are complying with screening requirements is a top priority for TSA. Those found to be violating air cargo screening regulations face severe civil and criminal penalties.”

“ActivAir has acknowledged the serious nature of the misconduct that occurred in its Indianapolis branch office, offered its complete cooperation in connection with the TSA investigation, and accepted full responsibility for the actions of its employees, said Frank Eichler, vice president and general counsel for OHL Solutions, Inc. “ActivAir’s management recognizes the importance of TSA security measures and has taken decisive action to prevent the recurrence of the compliance failures discovered at its Indianapolis branch office. ActivAir remains committed to a policy of strict compliance with all security regulations going forward.”

According to Assistant U.S. Attorney Cynthia Ridgeway, who is prosecuting the case for the government, Barnes, Vanhandel and Totty each face a maximum of 5 years in prison and $250,000.00 fine. An initial hearing hasn’t been scheduled.

Million dollar fine imposed on company that avoided cargo screening laws | Government Security News