Former Rhode Island Company Owner Ordered To Pay Over $400,000 in Restitution for Role in Unapproved Aircraft Parts Scheme in Connecticut
On March 18, 2016, Jeffrey Warga, owner of Rhode Island-based Bay Components, was ordered to pay $402,500 in restitution resulting from his guilty plea on December 12, 2014. The restitution order states that restitution is joint and several with co-defendant Jeffrey Krantz.
According to court documents and statements made in court, Jeffrey 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. 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 re-marked and not from the original manufacturer as represented by the markings on the chip.
DOT-OIG is conducting this investigation with the Defense Criminal Investigative Service.