Local News in Brief : La Habra : Businessman Admits Defrauding Government
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A local businessman has pleaded guilty to federal charges that he sold low-grade steel for use in commercial aviation, Cruise missiles and military jets and helicopters.
Gary Phillip Mahan, 52, who ran Pacific Alloys Co., pleaded guilty to one count of mail fraud and three counts of submitting false statements to government agencies.
He faces a maximum sentence of 20 years in prison and a $1-million fine. Sentencing has been set for March 14.
An FBI investigation found 33 instances in which inferior products had been substituted by Mahan’s company, according to the office of U.S. Atty. Robert C. Bonner.
Prosecutors have said the inferior steel was used in the Apache A-64 helicopter, the F-14 jet fighter, the cruise missile, the F-18 Hornet and the F-4 and F-5 aircraft.
Mahan allegedly created false invoices and submitted false certification to defense contractors and the government.
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