US Government Accuses Oregon Aircraft Contractor Of Fraud

December 19, 2011

A Coos Bay, Ore. company and its owner accused of defrauding the U.S. government by supplying defective and counterfeit aircraft parts have been indicted on fraud and money laundering charges.

A grand jury named Kustom Products Inc. owner Harold Bettencourt, several members of his family and the company itself in an indictment in U.S. District Court in Eugene last week, the Coos Bay World reports.

The indictment alleges that Kustom Products supplied defective and counterfeit parts to the U.S. Department of Defense in at least 392 separate contracts, valued at $7.5 million total.

The indictment alleges that the practice began with Kustom Products’ predecessor company, Southern Oregon Sterling Parts and Service.

The defendants were scheduled to appear before U.S. District Court Judge Michael Hogan on Monday.

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