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Federal agents raid University Loft headquarters

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Federal agents on Tuesday raided the headquarters of University Loft in Hancock County, spending hours at the contract-furniture maker seizing records.

Agencies involved included the Department of Defense, the Air Force, the Defense Criminal Investigative Service, and Immigration and Customs Enforcement.

The agents were executing a sealed search warrant, said Mary Bippus, spokeswoman for U.S. Attorney Tim Morrison. She would not disclose the contents of the warrant.

No arrests were made, Bippus said.

The company last year was awarded a multi-million-dollar contract to supply metal furniture for the Marine Corps’ Camp Lejeune base in North Carolina.

CEO James Jannetides was not immediately available for comment.

In a written statement issued Tuesday, University Loft said: “Our company was approached by federal agents with a search warrant seeking business records. The government did not reveal to us the object of their search, but we are cooperating with them in every way requested and will continue to do so. University Loft is confident it is in compliance with all applicable laws.”

Jannetides founded University Loft in 1986. Four years ago, it built a $22 million, 508,000-square-foot headquarters in the Hancock County town of Mount Comfort.

It’s not clear how many employees the company has in Mount Comfort. University Loft added 30 workers last year to fulfill the Marine contract.

This is not the first time University Loft has been investigated by the federal government. A year ago, the company agreed to pay $400,000 following an investigation by the U.S. Justice Department alleging the company violated trade agreements. The Justice Department said the settlement resolved allegations that the company knowingly sold Malaysian-made furniture to government agencies, which violated the Trade Agreements Act.

To strengthen government trade policy, the act sets requirements for the country of origin selling products to the United States. University Loft failed to comply with the rules under contracts it received from the General Services Administration that allowed it to sell to the military and other government entities, the Justice Department said.

University Loft issued a prepared statement at the time saying it "disputed the claims and concluded that it had at all times acted in good faith and engaged in no wrongdoing." However, the company said it "determined that it was more cost-effective to settle the case than litigate it."

The settlement followed a federal investigation of alleged false claims and contract fraud against University Loft brought in a lawsuit by California competitor Furniture by Thurston Inc. Furniture by Thurston received a $66,000 share of the recovery.

Under the False Claims Act, private citizens can bring a lawsuit on behalf of the United States and share in any recovery obtained by the government.

The case was investigated as part of the National Procurement Fraud Initiative. The government formed the National Procurement Fraud Task Force in 2006 to promote the early detection and prosecution of procurement fraud associated with the increase in government contracting activity, particularly for national security programs.

In its statement, University Loft said the primary issue in the case was whether it was permitted under the Trade Agreements Act to ship furniture directly from Malaysia to overseas U.S. military bases. The company said government contracting officials authorized and requested such shipments to save shipping costs. However, the Justice Departments said the practice violated the trade act even if it was requested by government officials.


 

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  • Tell us your Names
    We at loft would be happy to fix any problems you may have had in shipping. We do not control the trucks but understand damage can happen to be fair you should know that before you blame a company for fright dames a do a negatice post.
  • Over priced products
    We used this company a few times and received damaged products each time. Way over priced compared to other companies, a big hassle trying to get replacements. Very rude people when you call the office, have an I dont want to be bothered with you attitude.
    • quality beds
      I own 3 graduate series beds and this is by far the best quality furniture i own. Maybe i am mistaken, but this article seems to show the company was sued for saving the government money and shipping directly from Malaysia... Maybe trade agreements should be revised to prevent unnecessary spending. A tany rate my only complaint about this company is i bought my beds years ago with intentions to get the lindy loft kit later and now they don't sell the kit so i can make 2 beds into an L loft like they used to advertise. They still have it available for other bed series though,frustrating
    • Quality
      U Loft has the best equipment in the market, we have always been satisfied and pleased with our products.
    • Wonderful
      They have the absolute best product on the market, from what I have leaned this was bascially nothing.
    • ???
      is it safe to buy from this company?
    • ibj article
      did you see this?
    • Jim
      JIM

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    1. liek the rest of America

    2. These quaint,obsessed musings by the stalkers are certainly entertaining, but I'm trying to figure out what, if anything, all the yelping below has to do with Zak Brown.

    3. It's evident that Moffett was pushing the right buttons and corporate America is now trying to squash him. He just wanted to withdraw the free pilot services provided to the company by the pilots to try and put some pressure on a company that has not been interested in negotiating a contract in over 5 years. The company does not provide a contract because not having one has saved them a bundle of money. Shame on any Republic pilots not standing behind their union leader just because things are getting tough, can you not see such strategic moves by the company as putting the last union president in a corporate position and into THEIR pocket. Do you really believe the last union president is so appalled at the attempts by Moffett, do you not remember his oppositions to the company? We stood behind him. It has been proven over and over again for thousands of years without fail, a man cannot serve two masters. Anyone that believes people vote contrary to their paycheck and livelihood deserve to be taken advantage of, the recent statements by the former union president are laughable as he denounces the current union president from his new corporate position. Have you ever seen a drafted sports player score points for his previous team, it cannot be done, he is not on the pilots side anymore, he gets his money a different way now than you and I do, and he should not be allowed to remain on the seniority list. A drafted player brings strength, credibility, tactical knowledge, and a strategic advantage to his NEW team, he would not be drafted or paid were it otherwise. We are all forced to choose only one side to play for and support, not doing so has many references in life such as insider trading and shaving points, all illegal for good reason. This basic fact is why corporate moguls, scientist, and engineers all sign non-discloser agreements and non-compete clauses, as protection in case they are lured into switching sides as our former union president has done. No NFL coach ever drafted a player so that both teams could benefit and better understand each other, they are recruited to win the game against that former team, period. Likewise the company does not recruit the former union president by accident or mutual understanding, its strategy. Don't confuse playing the game with good sportsman-like conduct in support of common business and prosperity goals, with the requirement to only play for one side. Good men we all love and favor fall subject to this manipulation, often without their knowledge, and it is not a betrayal of their friendship to oppose them when they switch sides. If we did not love and trust them, they would not have been chosen and lured to the other side in the first place. The deception by the drafted player is not made at a conscious level, it's just human nature and it's all about money and power which corrupts our ability to be objective and loyal to two masters. This is why our court system created the defense attorney, and why our military created counter intelligence. Its strategy and its propaganda, and it works, and that's why the "powers to be" manipulate the chess pieces by sometimes changing their colors. Some players know they are being manipulated when their color is changed, but it brings them more money and power so they do not care. The rest have good intentions but do not even realize they are being manipulated. This tactic is also known by another name, Divide and Conquer. In battle sending an imperfect message with an imperfect team is obviously not ideal, but it's still being sent by YOUR team, your union leader, a leader that has common goals and common rewards with you, they are the best, because we have elected them to do a job for us. If you are not backing Moffett but believing the spin by those that have recently switched sides, you are taking food out of your own mouth. Showing unity and backing an imperfect situation still results in taking just as much ground, it's about unity and bargaining power. It's not necessary to wait around for that perfect attack because it will never come, the company will spin and attempt to destroy anyone that gets in their way. Ultimately it's not about any specific attack anyway, ASAP or whatever it makes no difference, it is and always has been only about power. If this company cared about safety it would not build pairings with 8 hour overnights, come on, are you that naive? Besides, do you really think Hoffa cares, no, he got a call from corporate America and was squeezed into denouncing Moffett. If he didn't they would spin the safety card against him and the Teamsters National with implication for truckers, future contracts, insurance rates etc...saying something like the Teamsters use safety as a bargaining chip, blah blah blah... Do you really think any pilot is going to do something unsafe for the contract, absolutely not, the only ones threatening safety here is the company with reduced rest, fatigue, and poverty. Do you not find it odd that Hoffa and the Teamsters are opposing a Teamster president publicly? Would the Teamsters National not normally support and work with one of their own? Why did they not sit down and help him strategize, correct any mistakes, and charge ahead? Would the Teamsters National not normally support and leverage a contract for all those pilots that have been paying Teamster dues, isn't that why we have all been paying Teamster dues in the first place? I sure haven't been paying dues so that the Teamsters National could come along and write this kind of an article undercutting our union leader and our unity. Whose side is the Teamsters National really on, it's obviously not the Republic pilots side.

    4. No matter what Moffatt does the company is going to spin it like he is the terrorist and brainwash people like you into believing it, wake up, back your players that are trying to change things for you and your livelihood. Where has Hoffa been for the last 6 years, except collecting our dues. Seriously, do you really think an FO going for upgrade, signed off by a checkairman ready for the upgrade, who then fails, is not even capable of returning as a First Officer.

    5. whoa!

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