CONCORD – In a stunning revelation, Enco Industries Inc., based in Plaistow, New Hampshire, has admitted to deceiving the U.S. Department of Defense’s Defense Logistics Agency (DLA) on a multi-million dollar contract. United States Attorney Scott W. Murray announced that the company pleaded guilty to making false statements.
The DLA procures vital operating supplies for the U.S. military through government contractors, including Enco Industries. The Department of Defense mandates strict specifications for these items, such as the oil sorbent mats acquired by Enco from the federal supply system. These mats are critical for absorbing flammable liquids and must dissipate electrical charges to the ground.
In 2011, the DLA issued a solicitation for approximately 96,000 units of hazardous material mats over five years. The solicitation specified that mats had to meet certain National Fire Protection Association standards. Enco, an approved contractor since 2004, submitted a bid stating it would purchase the mats from a Pennsylvania manufacturer at $29.15 per unit. This statement was proven false.
From June 2012 to October 2013, Enco delivered about 21,700 units and received payments totaling $683,513.55 for claims that were mostly fraudulent. An independent company found several mats did not meet specifications, prompting a potential contract termination notice from the DLA in October 2013.
In an email exchange in August 2013, Enco’s president falsely claimed the high cost of approved mats led to purchasing from a non-approved manufacturer, which was actually known to Enco. During interviews with NCIS and DCIS agents on February 21, 2014, the president further lied about receiving lower quotes from two approved manufacturers.
This fraudulent scheme was intended to defraud the Department of Defense at the expense of American taxpayers. The case underscores the importance of integrity in government contracting.
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Key Facts
- State: New Hampshire
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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