Man Charged With Falsifying Inspection Reports for Space Parts Supplied to SpaceX, DOD

Crowd gathers to watch as NASA and SpaceX make history by launching the first commercially-built and operated American crew spacecraft and rocket to the International Space Station. The SpaceX Crew Dragon spacecraft lifted off at 2:49 a.m. EST Saturday on the company’s Falcon 9 rocket at NASA’s Kennedy Space Center in Florida. (Credits: NASA)

BUFFALO, N.Y. (Justice Department PR) — U.S. Attorney James P. Kennedy, Jr. announced today that James Smalley, 41, of Penn Yan, NY, was arrested and charged by criminal complaint with falsifying inspection reports for space parts. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.

Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the complaint, the defendant was a Quality Assurance Engineer at PMI Industries, LLC, a Rochester aerospace precision machining service, specializing in high-tolerance machining for flight critical aerospace parts used to build space flight vehicles by SpaceX and other Department of Defense aerospace contractors.

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Company Blamed for Failed $704 Million NASA Missions Pays $46 Million in Fines

Glory satellite (Credit: NASA)

by Douglas Messier
Managing Editor

An Oregon manufacturer whose defective products NASA alleges caused the launch failures of two climate missions worth $704 million has agreed to pay more than $46 million to the space agency, the Department of Defense (DOD) and others it defrauded.

The Justice Department announced a plea bargain agreement of fraud charges against Hydro Extrusion Portland, Inc., formerly known as Sapa Profiles Inc. (SPI), and its corporate parent, Hydro Extrusion USA, LLC, formerly known as Sapa Extrusions Inc. (SEI).

The companies admitted to altering the results of tensile tests “designed to ensure the consistency and reliability of aluminum products it provided to U.S. government contractors and other customers,” the Justice Department said in a press release.

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