Long Island CEO Pleads Guilty in Remarked Parts Fraud

 - August 3, 2015, 6:01 PM

On July 28, Jeffrey Krantz, former CEO and owner of Harry Krantz, LLC, New York, N.Y., was charged with and pleaded guilty in U.S. District Court, Hartford, Conn., to wire fraud for his role in the sale of remarked aircraft parts. The investigation concerned sales from 2005 to 2008 and revealed that parts, sourced in China, were sold after Krantz had reason to suspect that they were remarked. The investigation determined that Krantz knowingly sold counterfeit microprocessors to a Rhode Island-based parts broker, who in turn sold the same counterfeit parts to a Connecticut based aerospace manufacturer, which used them in a Fadec unit for the Bell helicopter.

According to a Department of Justice, “The investigation revealed that many of the chips were used in the assembly of U.S. military and commercial helicopters. The chips have been examined and determined not to be the root cause of any mechanical problems experienced by the helicopters to date.” Krantz resigned from his position as CEO, he no longer has any relationship with the company and no charges were filed against the company.