A New York City man was sentenced to three years’ probation and fined $100,000 for supplying a Connecticut company with mislabeled microchips, many of which found their way into civilian and military helicopters, federal authorities say.
Jeffrey Krantz, 50, also was ordered to pay $402,650 in restitution when he was sentenced in Hartford federal court Thursday, the Connecticut U.S. Attorney’s Office said.
According to investigators and court records, Krantz between 2005 and 2008 unloaded at least 900 chips on a Rhode Island distributor that was unaware many of the Chinese-made microprocessors were not from the manufacturer whose logo appeared on them.
The unidentified Connecticut company later rejected many of the chips for being the wrong part because their internal components were incorrect, investigators said.
However, others were eventually delivered and used in the assembly of U.S. military and civilian helicopters, said authorities, who did not identify which helicopter makers were victims.
As part of his guilty plea, Krantz agreed to a two-year ban on the purchase or sale of electronic parts. He also forfeits all direct or indirect control over his company, Harry Krantz LLC, authorities said.
Authorities said Krantz’s conviction is part of an ongoing effort to protect the integrity of the U.S. military’s supply chain.
