Grand Jury Accuses 2 at Jet Parts Firm of Theft

An El Cajon jet parts manufacturer was indicted by a federal grand jury Thursday on 17 felony counts of conspiracy, making false statements and theft stemming from the company’s $250,000 contract to refurbish engine air seals on Air Force F-15 and F-16 jets.

It marks the second time in two years that George T. Straza, owner of Jet Air Inc., faces charges that he falsified documents in connection with a sensitive federal government contract.

The indictment alleges that Straza and Jet Air general manager Joao Jaime Costa ordered employees to cover up the company’s failure to complete required quality inspections of the engine seals. Though Jet Air delivered defective engines to the Air Force, no safety problems have been traced to the company, prosecutors said.

Accused of Stealing Gold

The company, Straza and Costa are also accused of stealing $25,000 worth of gold from the government by failing to return gold sludge removed from the engine seals as part of the refurbishment process.

James R. Mills, the former state Senate president pro tem who became Jet Air president last year, said Thursday that the company denied all allegations of wrongdoing.

Straza pleaded guilty in May, 1984, to making false statements to the National Aeronautics and Space Administration in connection with a $2.4-million contract to manufacture parts for the space shuttle. He served six months in prison and agreed to pay $690,000 to NASA under a plea bargain with federal prosecutors.