Contractor Fined, Suspended For DOD Auto Parts Fraud

Law360, New York (June 21, 2011, 2:40 PM EDT) -- A New Jersey-based contractor whose owner faces criminal fraud charges was fined $500,000 on Monday and sentenced to two years' probation, during which it cannot apply for defense contracts, for selling substandard auto parts to the U.S. Department of Defense.

The contractor, New York Machinery LLC,  pled guilty in December before U.S. District Judge Susan Davis Wigenton to military contract procurement fraud involving the sale of replacement parts for use in military operations. According to the plea agreement, the company agreed to more than $163,000 in...
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