Timothy W. Foley, Wire Fraud and Money Laundering, Ohio 2023

A California man has pleaded guilty to supplying the military with faulty parts in a scheme that spanned nearly a decade.

Timothy W. Foley, 72, pleaded guilty to conspiring to commit wire fraud and to money laundering, each a federal crime punishable by up to 20 years in prison.

As part of his plea, Foley has agreed to pay more than $1.3 million in restitution, according to court documents.

Foley was the operator and co-owner of Parts Source International Inc. in Goleta, California, a Defense contractor who sold and supplied a variety of military parts to the US military for use on military weapons systems.

According to court documents, Foley conspired to supply non-conforming parts to the US military from 2012 through 2019, submitting 131 quotes for purchase orders that stated he would provide the exact product as required by the government.

However, testing and documents revealed that Foley provided unapproved substitutions in fraudulent packaging, rendering them unacceptable for use by the military.

Parts Source received a total of approximately $1.36 million in payments for the parts, which were invoiced to the Defense Finance and Accounting Service (DFAS) in Columbus, Ohio.

The guilty plea was announced on November 16, 2023, by Kenneth L. Parker, United States Attorney for the Southern District of Ohio; the Defense Criminal Investigative Service (DCIS); and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI).

Assistant United States Attorney Jessica W. Knight and Special Assistant United States Attorney J. Michael Marous are representing the United States in this case.

Foley’s sentencing has not been scheduled, but he faces up to 20 years in prison for each of the two federal crimes.

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