The Associated Press
Saturday, Oct. 21, 2000
PHILADELPHIA –– An airport security company was fined more than $1.5 million
for allowing untrained employees, some with criminal backgrounds, operate
checkpoints at Philadelphia International Airport.
Philadelphia employees of Argenbright Holdings Ltd. had backgrounds that
included drug dealing, kidnapping, aggravated assault and theft.
The company pleaded guilty Friday to two counts of making false statements to
the FAA. U.S. District Judge Marvin Katz on Friday fined Argenbright $1 million
– the maximum possible under federal law.
The company had agreed in April to pay $1.2 million in fines and costs for
falsifying training and background checks.
Argenbright also must pay $350,000 to 38 airlines and will be on probation for
three years, during which inspectors will conduct audits of its hiring and
training, and $200,000 to reimburse the U.S. Attorney's Office costs to
investigate and prosecute the case.
"Argenbright is deeply embarrassed by this situation," said Edward S.G. Dennis
Jr., the company's attorney. "This does not represent the way they do
business."
Argenbright's 25,000 employees work at all major U.S. airports, but company
officials said the fraud occurred only in Philadelphia. Prosecutors said there
was no evidence that the scheme, which ran from 1995 through 1998, harmed
passengers, equipment or facilities.>
Three former Argenbright employees have also pleaded guilty to conspiracy and
fraud-related charges.
Sandra H. Lawrence, 61, the firm's former administrative manager in
Philadelphia, was sentenced to five years' probation and fined $15,000.
Steven E. Saffer, 50, Argenbright's former district manager, and Helen Fields,
56, the company's local personnel recruiter, will be sentenced next week.
Prosecutors said Saffer devised the scheme to increase the Philadelphia office's
profit margin and his bonus.
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