Mr. Josef Kadlec was indicted for causing heavy losses ($ 4 million) to Aero Vodochody while running a business within business. He led a gang of employees involved in the illegal manufacturing for 15 years.

Czech police indicted VP Manufacturing at Aero Vodochody Mr. Josef Kadlec (P. Eng). They charged him with grand theft and fraud.

According to police dossier, Mr. Kadlec (25 years with the company) was a head of gang of employees involved in illegal manufacturing long before Penta Investments acquired Aero Vodochody in 2006 from Czech government. Members of the gang were Zdeněk Majtán, shop floor foreman, Jan Janovský (P. Eng) manager of programming of CNC milling machines and other lathe and milling machine operators.

According to testimony of Aero Vodochody president Ladislav Šimek, the gang was purchasing material and cutting tools on behalf of the company. Then, the company's CNC milling centres were used in order to produce large parts ordered by the "clients" of the gang. Among the "clients" were companies such as Škoda Auto and Wikov Gear.

In order to legalize the finished products, they were transported to nearby town of Odolena Voda, where Mr. Majtán was running his machine shop. There, the documents stating that the finished products were made in his shop were attached to them.