Danville software executives accused of attempting to defraud Tennessee Valley Authority | New

Senior executives at a Danville-based software company were accused this month by federal prosecutors of allegedly attempting to acquire more than $ 300,000 in fraudulent inducement payments from the Tennessee Valley Authority (VAT) linked to contract work for a school district outside of Nashville.

Anthony “Tony” Gigliotti, 74, CEO of Autonomic Software, Inc., is charged with conspiracy to commit wire fraud, three counts of mail fraud and three counts of wire fraud while the vice president of ‘Autonomic, Alexander Gigliotti, 36, is charged with conspiracy to commit wire fraud.

The two men were arrested by the US Marshals Service in Danville on September 10, according to the US Attorney’s Office for the Central District of Tennessee.

They were subsequently released and should be arrested by video this Wednesday morning, where they should plead in favor of the charges against them.

Defense lawyer Lawrence Arnkoff did not respond to a request for comment on the Gigliottis case on Tuesday evening.

According to prosecutors, the case arose as a result of contract work done by Autonomic in 2016 to install power management software for schools in Rutherford County, a school district based in Murfreesboro. , Tennessee, southeast of Nashville.

The work was related to TVA’s EnergyRight effort, “an incentive program designed to save energy and reduce costs through the installation of energy-saving software.” To be eligible for the energy saving funds, customers had to pay a portion of the software hardware costs, ”prosecutors said.

Investigators allege Autonomic staff falsely told the district that schools would not incur any costs associated with installing the software. But after installing the software, the company reportedly submitted 47 invoices worth $ 588,240 to Lockheed Martin – the contract administrator for EnergyRight – which were issued to schools in Rutherford County for costs incurred by each school. for self-employment.

Prosecutors allege that Alexander Gigliotti emailed Lockheed Martin with a breakdown of an invoice that claimed a school paid $ 22 per computer for software and $ 8 per computer for support.

“In fact, schools in Rutherford County have incurred no costs associated with an Autonomic bill, authorities said. “Lockheed Martin then sent incentive payments to Autonomic that matched each invoice.”

The indictment against the couple also alleges that Tony Gigliotti lied to TVA agents by falsely claiming that Alexander Gigliotti was not involved in any previous TVA or Rutherford County work.

To boot, “the Autonomic software did not perform as originally depicted and about a year after installation, Rutherford County Schools purchased energy saving software that could effectively quantify energy savings and which cost significantly less than the total supposed costs of Autonomic materials, “prosecutors allege.

Defendants face up to 20 years in prison if convicted of the allegation. The investigation was carried out by the Office of the Inspector General of TVA, and the case is being pursued by the assistant of the American lawyer Sara Beth Myers.

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