Kustom Targeted For Allegedly Bogus Helicopter Parts

Law360, New York (October 19, 2010, 3:31 PM EDT) -- The federal government is investigating whether an Oregon company that has been awarded more than $30 million in Department of Defense contracts since 2005 defrauded the U.S. by providing bogus lock nuts for Kiowa military helicopters.

Starting around September 2005, Coos Bay-based Kustom Products Inc. and Southern Oregon Sterling Parts and Service Inc. were part of a fraud scheme that involved furnishing "nonconforming substitute parts and supplies" to the DOD, according to an affidavit filed last month in the U.S. District Court for the District of...
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