La Habra Defense Contractor Accused of Using Inferior Metals

A La Habra businessman who allegedly sold defective metal for use in commercial aviation, cruise missiles and military jets and helicopters was charged with mail fraud Wednesday.

Gary Phillip Mahan, 52, head of Pacific Alloys Co., faces a maximum of 20 years in prison and $1 million in fines if convicted of all four counts against him. In addition to mail fraud, he is charged with submitting false statements to government agencies. According to the U.S. attorney’s office in Los Angeles, the allegations cover a period through last Nov. 10.

The federal charges accuse Mahan, who had contracts to provide steel for use in several military projects, of 33 instances of selling inferior metals. According to federal prosecutors, Mahan created false invoices and submitted false certification to defense contractors and the government.

According to prosecutors, the inferior steel was used in the Apache A64 helicopter, the F14 jet fighter, the cruise missile, F18 Hornet, and F4 and F5 aircraft.