Aircraft Cable Manufacturer Fined $1.6 Million For False Certification
May 30, 2001
Strandflex Company, a division of Maryland Specialty Wire, Inc., was ordered by an U.S. District Court judge in Syracuse, NY to pay a criminal fine of $500,000 and $100,000 in restitution. The company was also placed on 3 years' probation under the terms of a plea agreement, by which Strandflex admitted to making false claims to the United States. Strandflex also agreed to pay $1 million to settle a civil complaint filed under the False Claims Act. The company admitted manufacturing aircraft cable and falsely certifying that it met the manufacture and quality assurance testing requirements of U.S. Military Specification. Relying on these certifications, Strandflex customers sold the cable to Government agencies and the civilian aviation industry regulated by FAA. During the investigation, the U.S. Attorney's Office notified all military, domestic, and international airline end users that had purchased Strandflex cable to advise them it may not have met the manufacturing and testing requirements as required by military specifications. OIGs from DCIS, NASA and DOT investigated the case.