Feds: Co. Sold Used Parts for Missiles
NEWARK, N.J. (AP) _ Federal prosecutors on Friday joined a lawsuit accusing a Canadian electronics company of selling improper parts to the Army for its Patriot missile system after the Gulf War.
The suit, originally filed by a former company manager, alleges CMC Electronics of Montreal sold used and surplus radio sets to the Army in the mid-1990s, but charged the government as if the equipment was new.
As a result, the government overpaid ``millions of dollars,″ Assistant U.S. Attorney James B. Clark III said.
Messages left Friday for the company’s lawyers were not returned.
The lawsuit, filed in January 2001 by Russell Hayes, was unsealed Friday by a federal judge.
Hayes, a program manager, claims he was fired in 1996 because he was ``increasingly insistent″ that the company stop cheating the U.S. government.
According to the suit, the government contracted in 1992 for 97 new radio sets. CMC concealed the use of used or surplus sets by destroying evidence, including removing original serial numbers, the suit alleges.
Clark said no injuries or defective missile systems have been linked to the radio sets.
On the Net:
U.S. Attorney’s Office in Newark: http://www.njusao.org/break.html