NEW YORK — An airport ground handling company has reached a $12.3 million settlement with the state of New York to resolve charges the company made "kickback payments" in order to leverage contracts for JFK International Airport and other airports across the U.S.
According to the New York State Attorney General's Office, Ground Services International (GSI) received new contracts due to payments it made to executives at British Airways and Terminal One Group Association LP (TOGA). The Attorney General's Office said its investigation, "Operation Greased Runway," revealed that GSI President Jeff Kinsella gave an "ownership interest" in GSI to a British Airways executive and also made payments of more than $1.2 million to the same executive in order to get contracts. GSI also paid TOGA's executive director in order to get the ground services contract at JFK, according to the Attorney General's Office.
“New Yorkers deserve safe airports where businesses play by the rules," said New York State Attorney General Barbara Underwood in a statement. "Yet these brazen, longstanding pay-to-play tactics undermined the integrity of contracting at JFK — allowing greed to trump fairness. Our investigation continues, and we’re committed to rooting out corruption wherever it exists.”
“[This] announcement exposes a pay to play scheme that enabled Port Authority tenants and vendors to game the system and award business in exchange for payoffs and greed versus integrity and fairness," added New York and New Jersey Port Authority inspector general Michael Nestor.
The settlement also includes GSI establishing an "anti-bribery and corruption policy," and setting up an outside audit firm, the Attorney General's Office said.