Investigations

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California Aircraft Parts Brokerage Firm and its Manager Sentenced for Fraud and Conspiracy Involving Fraudulent Representation of Aircraft Parts

On February 12, Standby Parts, Inc., an El Segundo, California aircraft parts brokerage company, was fined $450,000 by a U.S. District Court judge in Los Angeles, California for misrepresenting the quality of aircraft parts. The company was placed on 2 years probation, and its manager, Henrick Johansen, was ordered to serve 11 months imprisonment. A federal jury convicted Standby and Johansen in June 2006 of felony charges of conspiracy and fraud involving aircraft parts. An OIG investigation found that Johansen obtained FAA airworthiness tags for aircraft engine bolts and a tail skid actuator indicating that the parts were either new or of a higher quality than Johansen knew them to be. None of the affected parts were deemed flight critical, but FAA issued a safety alert on some parts in April 2001.