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.