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United States Attorney's Office News Release

 

February 1, 2007 - United States Attorney Patrick L. Meehan today announced the filing of a Superseding Indictment* against Lee Blatt and Herley Industries. Blatt was a founder and former chairman of the board of directors of Herley Industries. The Superseding Indictment charges that in 2000, 2001 and 2002, the defendants initiated and orchestrated a fraud scheme to price gouge the government of millions of dollars on contracts for electronic components: one sold to the Air Force, one to the Navy.

Herley Industries is a publicly traded company, whose corporate headquarters is in Lancaster, Pennsylvania. It designs microwave and electronic components for military and space applications.

In the 33-count Superseding Indictment, Blatt and Herley Industries are charged with 27 counts of wire fraud, in violation of 18 U.S.C. § 1343, two counts of obstruction of a federal audit, in violation of 18 U.S.C. §1516, three counts of false statements to the government, in violation of 18 U.S.C. § 1001, and one count of major fraud against the United States, in violation of 18 U.S.C. §1031, and aiding and abetting, in violation of 18 U.S.C. §2. The Superseding Indictment does not change the basis of the fraud charged in the Indictment, however, the wire fraud counts in the Superseding Indictment include four wire transfers not included in the original Indictment relating to the 2001 contract with the Air Force and reflect the fact that, on more than one occasion, the government consolidated multiple payments into a single wire transfer.


DEFENDANT


ADDRESS


AGE [Date of Birth]

LEE BLATT

VERO BEACH, FLORIDA

1928

HERLEY INDUSTRIES

LANCASTER, PA

If convicted, defendant Blatt faces a maximum possible sentence of 170 years in prison, 3 years supervised release, and $3,300 in special assessments. In addition, each defendant faces a maximum possible fine of $13,000,000, and the company faces $13,200 in special assessments. Forfeiture of the more than $3.9 million in payments received under these contracts may also be ordered, as well as full restitution to the government.

The case was investigated by the Defense Criminal Investigative Service and has been assigned to Assistant United States Attorneys Pamela Foa and Anthony Kyriakakis.


UNITED STATES ATTORNEY'S OFFICE
EASTERN DISTRICT, PENNSYLVANIA
Suite 1250, 615 Chestnut Street
Philadelphia, PA 19106

Contact:
RICH MANIERI
Media Contact
215.861.8525


*An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.

Benjamin Franklin Photo by B. Krist for the Greater Philadelphia Tourism Marketing Corporation