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Tuesday, July 22, 2014

Oregon Contractor Pleads Guilty to Defrauding US

OH-58 KiowaAn Oregon defense contractor has pleaded guilty to selling $10 million worth of phony parts for attack helicopters and military vehicles to the U.S. government, including a locknut that secures the rotor on the Kiowa attack helicopter.

According to court records, the company Kustom Products Inc., a longtime seller of truck and RV parts based in Coos Bay; owner Harold Ray Bettencourt II, and four employees pleaded guilty Friday in U.S. District Court in Portland to conspiracy to defraud the United States.

"These crooks took deliberate actions to supply defective equipment to our military, putting our service men and women in harm's way during a time of war," Kenneth Hines, special agent in charge of Internal Revenue Service Criminal Investigation, said in a statement. "Then, they spun a web of complex lies to cover it all up."

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