New York CEO Ordered To Pay Over $400,000 in Restitution for Role in Unapproved Aircraft Parts Scheme in Connecticut
On March 22, 2016, Jeffrey Krantz, CEO and owner of Harry Krantz, LLC, New York, NY, was ordered to pay $402,500 in restitution resulting from his guilty plea on December 10, 2015. The restitution order states that restitution is joint and several with co-defendant Jeffrey Warga.
According to court documents and statements made in court, Krantz was the CEO and an owner of Harry Krantz, LLC, a New York-based company that bought and sold, among other things, obsolete electronic parts for use by the U.S. Military and commercial buyers. In 2005, Krantz entered into a business relationship with Warga, the president and owner of the Rhode Island-based Bay Components, LLC. Krantz LLC sold military microprocessor chips to Bay Components who in turn sold them to a Connecticut company. Warga and Krantz knew that the chips originated from a parts supplier in China, and that there was a high probability they were falsely remarked and not from the original manufacturer as represented by the markings on the chip.
On July 28, 2015 Krantz was charged and pleaded guilty, and on December 12, 2014, Warga was charged and pleaded guilty in U.S. District Court, Hartford, CT, to wire fraud for their roles in the sale of unapproved aircraft parts.
DOT-OIG is conducting this investigation with the Defense Criminal Investigative Service.