Long Island CEO Pleads Guilty to Wire Fraud Involving Unapproved Aircraft Parts
On July 28, 2015, Jeffrey Krantz, CEO and owner of Harry Krantz, LLC, New York, New York, was charged and pleaded guilty in U.S. District Court, Hartford, Connecticut, to wire fraud for his role in the sale of unapproved aircraft parts. Harry Krantz, LLC, bought and sold, among other things, obsolete electronic parts for ultimate use by commercial buyers and the U.S. Military.
The investigation determined that Krantz knowingly sold unapproved microprocessors to a Rhode Island based parts broker, who in turn sold the same unapproved parts to a Connecticut based aerospace manufacturer which were utilized in Bell produced helicopters. These unapproved circuits were ultimately installed on a Full Authority Digital Engine Control (FADEC) unit that automatically controls all aspects of engine and hydraulic controls for the Bell helicopter. The Intel Corporation has confirmed that the circuit chip bearing the markings "Intel" that was found installed within the FADEC unit was not manufactured by Intel.
We are conducting this investigation with the Defense Criminal Investigative Service.