Media, PA Man Sentenced for Stealing $1.2 Million from US Defense Contracts
A Media, PA man has been sentenced to 37 months in prison for committing major fraud against the United States, obstructing a federal audit, and making false claims to the government, in connection with defense contracts to manufacture components for military helicopters.
Kenneth Narzikul, 60, of Media, PA, was sentenced today to 37 months in prison for his crimes. U.S. District Court Judge L. Felipe Restrepo also ordered restitution in the amount of $1.2 million, a fine of $7,500, and three years of supervised release to follow the prison term.
Narzikul was the President and 85% owner of NP Precision, Inc. (NP), a machine tool business located in Folcroft, PA, which is now defunct. NP contracted with Department of Defense component agencies to produce critical hardware components used in military helicopters and other aircraft.
At his guilty plea hearing on August 25, 2014, Narzikul admitted that he schemed to fraudulently divert and steal approximately $1.2 million in progress payments that the United States paid NP under two contracts to produce drive shaft couplings for a U.S. Army helicopter Model CH-47, commonly known as the Chinook helicopter. Narzikul further admitted that he made false claims to the government so that NP could continue to receive progress payments on those contracts, when he knew that NP had not earned the progress payments.
Narzikul tried to cover up his fraud by lying to government auditors and submitting false documents to them, and directing employees at NP to do the same. He used the diverted progress payments to pay outstanding obligations on other contracts and pay other personal and business expenses for himself and his family.
The case was investigated by the Major Procurement Fraud Unit (MPFU) of the United States Army Criminal Investigative Command (Army CID), the Defense Criminal Investigative Service (DCIS), and the United States Air Force Office of Special Inspection (Air Force OSI). It was prosecuted by Assistant United States Attorney Mary E. Crawley.
Mandatory Facts: Defendant/Respondent: Kenneth Narzikul, Exact Criminal Charges: major fraud against the United States, obstructing a federal audit, and making false claims to the government, City and State: Philadelphia, PA, Exact Date: August 25, 2014, Sentence: 37 months in prison, restitution in the amount of $1.2 million, a fine of $7,500, and three years of supervised release, Dollar Amount: $1.2 million, $7,500.
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Key Facts
- State: Pennsylvania
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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