Wednesday, June 8, 2005

Aircraft Parts Manufacturer and Two Executives Charged with Providing Materials for Military Aircraft That Failed to Meet Product Specs

Anco-Tech, Inc., and two of its executives, Andrew Maliszewski, a quality manager and vice-president, and Alan Maliszewski, a sales manger and later a quality manager, were charged with mail fraud, aircraft parts fraud (18 U.S.C. Sec. 38), and conspiracy related to the sale to Boeing of titanium tubing that was used in the V-22 Osprey aircraft (indictment here). According to a press release issued by U.S. Attorney Patrick Meehan of the Eastern District of Pennsylvania (here):

“Tests were skipped, protocols were ignored, inspection procedures were not followed, documentation was either incomplete or falsified, and all of this was not only tolerated but sanctioned and condoned by the company,” said Meehan. “The certification process is a critical part of this country’s overall defense effort. The conduct of these defendants undermined that effort and created needless risk for the men and women of our armed forces.”

The indictment charges that from approximately 1995 through February 2002, Anco-Tech sold for use in V-22 Osprey aircraft and civilian aircraft titanium tubing without regard to whether it conformed to the applicable specifications, but nonetheless certified that the tubing complied with the specifications. The indictment further charges that defendants Andrew Maliszewski and Alan Maliszewski executed, or directed other Anco-Tech employees to execute, false certificates of conformance that represented that titanium tubing manufactured for use in the aerospace industry conformed to all applicable specifications, knowing that the tubing had not been manufactured, inspected, and/or tested in conformance with the specifications, or that the tubing did not conform to the applicable specifications regarding chemical composition, dimension, strength and/or other physical and mechanical properties. In this regard, the indictment charges that the Malizsewskis directed Anco-Tech employees to skip required tests and ignore certain testing protocols, or were aware of and approved this conduct. The indictment further alleges that applicable inspection procedures were not followed, and that required documentation was not being completed and/or was falsified, and that this conduct was directed and/or condoned by the Maliszewskis.

Barbara McCoy and Elaine Slomsky, who were Anco-Tech quality assurance supervisors, were charged in separate informations with making false statements under Sec. 1001 regarding compliance with testing requirements for the titanium tubing (press releases here and here).  The Osprey fleet was grounded once the problem in the titanium tubing was discovered by Boeing.  Although two Ospey's have crashed in 2000, those were not attributable to the product supplied by Anco-Tech. (ph)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/06/military_parts_.html

Fraud, Prosecutions | Permalink

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