OXNARD : Fraud Charges Against Company Are Dropped

U.S. attorney’s office prosecutors have decided to drop fraud charges against Del Manufacturing of Oxnard, saying the likelihood of collecting fines against the bankrupt company were slim.

However, on Monday those same federal prosecutors reiterated their vow to pursue 15 counts against three Del employees, saying they defrauded the U.S. Army of more than $3 million in a complicated double-billing scheme. The firm made practice bombs for the army.

Assistant U.S. Atty. Chuck Kreindler said he will proceed with the prosecutions of Richard Ceniseroz, 41, and Paul Delgado, 40, both of Oxnard and Teresa Delgado, 65, of Ojai.

Ceniseroz has been charged with three counts of theft of government property, two counts of money laundering, seven counts of false claims and one count of obstructing a federal audit. Paul Delgado has been charged with obstructing a federal audit and perjury while Teresa Delgado has been charged with perjury.

The case is set to go to trial in U.S. District Court March 29.

Although Kreindler said the decision to drop the fraud charges against Del were based on financial considerations, an attorney for the firm said he viewed the decision as a “complete vindication” for the company.

“Dismissal of the government’s criminal case now clears the way for Del to complete its reorganization under Chapter 11 and get back to business,” attorney William E. Winfield said.