SIMI VALLEY : 2 Workers, Firm Charged With Fraud

A Simi Valley man and another official of a Van Nuys company were charged in a scheme to defraud customers by selling military and commercial aircraft bearings different from those ordered, according to U. S. Atty. Lourdes G. Baird.

Baird said Alliance Bearing Industries routinely filled orders for bearings of certain specifications with different bearings, including some of inferior quality.

Charged along with the company were Robert Baker of Simi Valley, the firm’s head salesman, and Alliance Vice President Glenn Heller of Woodland Hills.

The company distributed bearings and bushings used in a variety of military and commercial aircraft. Prosecutors said none of the bearings have failed. They said they are trying to locate and test the substituted bearings and replace them if necessary.

Baird said Alliance and Heller were each charged with one felony count of mail fraud and three counts of making false statements to the Defense Department. Baker was charged with one count of making a false statement.

James Chalfont, an attorney for the company, said it and its employees plan to plead guilty to the charges Monday.

He said the firm substituted less than $50,000 worth of bearings and most were the same quality as those ordered.

Baird said Alliance faces a maximum $2-million fine. Heller faces a $1-million fine and 20 years in prison, while Baker faces a $250,000 fine and five years in prison.