Former Aircraft Parts Supplier Sentenced for Fraud Involving Aircraft Parts
On October 7, 2010, Mark Holiday, former owner of Sky Controls, Inc. (SCI), was sentenced in the Central District of California, to 8 months imprisonment, 3 years supervised release, a $5,000 fine and ordered to pay $1,602.50 in restitution, and a $100 special assessment for misrepresenting the condition of an aircraft part while on probation for similar conduct.
Mr. Holiday caused SCI to fraudulently sell used or mislabeled aircraft parts as new or new surplus parts to government and commercial customers. Mr. Holiday instructed SCI employees to repair or otherwise change the appearance of used aircraft parts so that the parts could be sold as new or new surplus to customers, knowing that the parts were not as SCI represented. In one instance, SCI allegedly sold an aircraft motor with an SCI issued Certificate of Conformance falsely certifying that the motor was in new surplus condition, when it was not. The motor was subsequently tested by the manufacturer, who determined that the motor contained characteristics that were inconsistent with an authentic motor manufactured by them. This investigation was conducted jointly with the Federal Bureau of Investigation, Defense Criminal Investigative Service, NASA-OIG, and U.S. Army-CID.