The second conspirator in a fraudulent military parts scheme that defrauded a Connecticut company has been sentenced.
Jeffrey Warga, 62, of North Kingstown, R.I., was sentenced to three years of probation and ordered to pay a $10,000 fine by a federal court judge in Hartford Thursday.
According to federal prosecutors, Jeffrey Warga, 62, of North Kingstown, R.I., conspired with Jeffrey Krantz, the CEO and an owner of Harry Krantz LLC, a New York-based company that bought and sold, among other things, obsolete electronic parts for use by the U.S. Military and commercial buyers.
In December, Krantz was sentenced to three years’ probation and fined $100,000. He also was ordered to pay $402,650 in restitution. A restitution hearing for Warga is scheduled for March 4, 2016.
In 2005, Krantz entered into a business relationship with Warga, the president and owner of Rhode Island-based Bay Components LLC, to sell military microprocessor chips to Bay Components, which would in turn sell them to a Connecticut company, which wasn’t identified. Krantz and Warga, prosecutors said, knew that the Connecticut company wanted new and original chips, not falsely remarked chips.
An 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.
