U.S. firm admits falsifying papers for arms sale to RI
U.S. firm admits falsifying papers for arms sale to RI
NEWARK, New Jersey (AP): A U.S. company, barred from Defense Department work for selling military parts to Iran, now admits it falsified papers to sell unapproved engine parts to the Indonesian air force.
U.S. companies are permitted to sell military equipment to Indonesia, but not to Iran.
The guilty plea entered on Wednesday on behalf of New Jersey- based International Helicopter Inc. is the latest in a series of negotiated settlements that began in March, when the company's past president and owner, Daniel A. Malloy, admitted shipping 100 Hawk missile batteries and other military aviation parts to Iran, using a colleague in Singapore as a middleman.
As part of his plea bargain, Malloy is barred from a role in the company. His wife, Ellen Malloy, is now president and sole owner of International Helicopter, which has filed for bankruptcy protection, said the company's lawyer, Gerald Krovatin.
As a result of the Iranian deal, International Helicopter is barred from any U.S. Defense Department work.
Daniel Malloy, 42, of Oradell, remains under house arrest pending sentencing Dec. 13. Federal prosecutors agreed he is eligible for a term of about 4 to 5 years and a $750,000 fine, but the decision lies with the judge.
Charges are still pending against Daniel Malloy's alleged cohort, Joseph T.B. Balakrisha Menon, who operated Heli-World Aviation Pte. Ltd. in Singapore.
Singaporean media recently reported he died, but prosecutors are awaiting "official confirmation," Assistant U.S. Attorney Noel L. Hillman said.
International Helicopter pleaded guilty to a single count of making false statements to the Federal Aviation Administration in 1997 to deceive an aircraft parts broker, KoolHaas Alphen BV.
KoolHaas, based in the Netherlands representing Indonesia, sought turbine blades from an FAA-approved source for the T-56 engine made by Allison Engine Co. The engine is commonly used on the C-130 Hercules cargo planes, Hillman said.
Unable to find Allison blades, Malloy found another manufacturer and doctored an Allison invoice to make it appear the parts were from Allison. Unlike Allison, the other maker did not have FAA certification for export airworthiness of the blades.
The blades represented $50,000 of a $500,000 shipment and Indonesia has not complained about the parts, Krovatin said after the court proceeding.
The shipments to Iran were made through Singapore between January 1996 and September 1997. They included spare parts for the Northrop F-5 fighter jet, a military jet engine used for the Grumman F-14A fighter jet, and 100 batteries for the surface-to- air Hawk missile, Malloy has admitted.