12/18/2012 1:51:00 AM
NEWS BRIEFS
Counterfeit Fastener Case Part of ‘Growing’ Military Supply Fraud
MEDIA SPOTLIGHT – A former Columbus, OH, man is charged with selling the U.S. military thousands of counterfeit nuts, bolts and screws in one of several military-parts cases before the U.S. District Court in Columbus, the Columbus Dispatch reports.
Martin Dale Geyer, owner of Georgia-based Wellworth Fastener Products, awaits arraignment after being indicted by a federal grand jury in late November on seven charges of fraud and false claims, the Dispatch reports.
“The problem is persistent and ongoing,” said Assistant U.S. Attorney J. Michael Marous, who’s prosecuting Geyer. “We have had a continuous flow of these cases for 15 years.”
“Geyer, 48, now of Wentworth, Ga., lived in Norwich Township in 2010 when federal agents searched his house as part of the bogus-parts investigation,” writes Kathy Lynn Gray of the Dispatch. “He ran the company out of that house in northwestern Franklin County.”
According to its website, Wellworth Fastener Products is listed as “an ISO-certified distributor of fasteners (industrial, commercial, military and specials).” The company address is listed as 117 Busch Lane, Rincon, GA. Web: wellworthfastener.com
Numerous counterfeit-parts cases are prosecuted in Columbus because contractors are paid through the Defense Finance and Accounting Service office here, Gray reports.
Penalties for contractors who supply bad parts range from probation to 20 years in prison. In addition, defendants often are charged with mail fraud because “they ship the parts, or with wire fraud because defense payments are wired to them.”
Some of the nonconforming parts Geyer is accused of providing were considered critical, according to the indictment against him.
The Defense Acquisition University, which provides training for defense workers in the acquisition field, concludes in a report that
“Counterfeit products are a pandemic crisis, growing annually,” according to the Defense Acquisition University. The training center report says that while the problem is difficult to contain, efforts to control it are increasing, both in the military and in industry.
About 200 cases a year are investigated for possible fraud, and about 10 a year are turned over for prosecution, according to Edward Hintz, chief counsel for the Defense Logistics Agency Land and Maritime. ©2012 GlobalFastenerNews.com
Editor’s Note: Articles in Media Spotlight are excerpts from publications or broadcasts, which show the industry what the public is reading or hearing about fasteners and fastener companies.
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