russian businessman, former army colonel are focus of investigation into mi-17 helicopter work - storage battery

WASHINGTON-The relationship between a former Army colonel and a Russian entrepreneur is at the heart of a criminal investigation into a project to provide Russian helicopters to American allies.
Federal agents are investigating why a humble Department of Defense acquisition office managed by Col in Alabama.
Bert wilgez has repeatedly supported Yuri Borisov's company despite their poor record on the contract prior to the renovation of Mi
According to interviews and documents obtained by The Associated Press, 17 helicopters.
When Borisov insisted on paying millions extra for his company's late overhaul work, Vergez supported him.
When Borisov sought a new overhaul contract for millions of helicopters, it was Vergez's office that approved the deal.
When auditors at the Pentagon's inspector general's office found signs of illegal activity, Vergez proposed plans to install a new engine on Mi.
17 people traveling to Afghanistan
The agreement promises to generate millions of dollars in revenue for Borisov.
Borisov's AviaBaltika airlines and St. Petersburg Aircraft maintenance are still technically eligible for a federal contract.
The inspector general's audit recommended that the army take measures to ban or suspend these operations, but that they have not been taken more than a year later.
The investigation is the responsibility of the FBI and the Defense Criminal Investigation Bureau.
Delegates from both agencies declined to comment.
Both Vergez and Borisov, who retired from the Army in November 2012, did not call back to seek comment on the story.
The first time the two met was not clear.
Vergez, 48, wore a 25-year uniform before retiring.
In 2001 he was assigned to the Army Command in Huntsville, Alabama.
Manage the aviation budget for the service.
Born in 1956, Borisov served in the Soviet Army for 10 years and founded his airline in early 1990.
AviaBaltika is located in Kaunas, Lithuania.
Russian-based aircraft repair company St. Petersburg is known as the well-known SPARC.
In Lithuania, Borisov is known for its gorgeous lifestyle and scandal, which led to the impeachment of Lithuanian president roandas Pasi in 2004.
After Borisov was linked to the Russian mob, pacassas was removed. Borisov is the number one financial supporter of his campaign.
No charges were made against Borisov, but the United StatesS.
The embassy in Vilnius, the capital of Lithuania, closely watched him and his business.
Tom Kelly, then head of the embassy's deputy mission, called AviaBaltika "notorious" in a telegram published on the WikiLeaks website ".
Still, concerns about Borisov slipped through the cracks.
By 2008, AviaBaltika and SPARC were part of a large defense contract held by Northrop Grumman to support the United StatesS.
Anti-terrorism activities.
AviaBaltika and SPARC are responsible for rectifying the moon and the United States.
17 helicopters are part of the United States. S.
Strategy to beat al
Al-Qaida and other extremist organizations
The Pentagon has acquired dozens of new and used Mi-
Reaching out to Iraq, Afghanistan, Pakistan and other countries in the fight against terrorism.
But Borisov's company is in trouble.
$38 million work on a 10-mile renovation-
According to the Pentagon inspector general's audit, 17 helicopters expanded to more than $64 million, and the delivery date of the helicopter was seriously missed.
Government contract officers have been paying bills for what the auditor has said is undoubtedly and unnecessary.
AviaBaltika and SPARC receive helicopter spare parts with excessive interest rates.
For example, the price of a battery is slightly higher than $13,000, more than 500% higher than the price of other companies.
Jonas Bazaras, commercial director of AviaBaltika, said in an email that the audit results were "inconsistent with reality" but declined to comment further.
Quality control inspectors from the United StatesS.
The Russian government and Northrop Grumman have repeatedly been denied access to the company's facilities in Russia.
A senior executive of Northrop Grumman wrote in a memo dated February 2010, denying that "it is clear that AviaBaltika and SPARC are not at all suitable for being entrusted to represent the United StatesS. government.
"In early 2011, the United StatesS.
AviaBaltika and SPARC transferred the government management of the overhaul work to the Army procurement office in Huntsville, led by Vergez.
Although the auditor did not find any evidence that the required cost analysis had been completed, Vergez supported AviaBaltika and SPARC for additional compensation of $11 million.
The companies argued that the delay in helicopter maintenance was not their fault, but caused by the failure of another contractor to provide replacement parts.
The records show that, therefore, AviaBaltika and SPARC indicated that they had incurred expenses that should not be borne.
In the end, AviaBaltika and SPARC received $ months. 2 million.
According to a person familiar with the matter, the money stopped flowing after Pentagon officials in Washington instructed the Vergez office to stop paying, but was not entitled to be identified as a source of information.
Despite their past performance, AviaBaltika and SPARC won another contract in April 2011 and will overhaul Mi-five more times-
Records show 17 years old.
According to an Army budget document, although the helicopter overhaul has not yet been completed, the new contract has cost nearly $14 million.
Just a few months before Vergez retired, he came up with a plan through which the government contractor science and engineering services company in Huntsville will receive the new Ukranian-
Build engine for Mi17s the U. S.
Bought for Afghanistan.
AviaBaltika is an authorized distributor of the Motor Sich engine in the United States. S.
Made millions of dollars.
But the plan stalled after Vergez retired.
Only two engines have been obtained so far.
_ Associated Press writer Liudas Dapkus contributed to the report in Vilnius, Lithuania, Gary Peach Blossom Riga Latvia and Associated Press researcher Judith Ausuebel and Ronda Shafner New York.