News and Press Releases

Medico Industries Agrees to Pay Government $225,000
To Resolve Allegations of Providing Non-conforming Goods to the Department of Defense

FOR IMMEDIATE RELEASE
June 5, 2012

     The United States Attorney’s Office for the Middle District of Pennsylvania announced that Medico Industries, Inc., headquartered in Wilkes-Barre, Pennsylvania, has agreed to pay the United States $225,000 to resolve allegations that it provided non-conforming goods to the Department of Defense.

     According to United States Attorney Peter J. Smith, Medico has agreed to pay $225,000 to resolve allegations that it improperly provided non-conforming Tail Fin Cone Assemblies for mortar illumination and smoke rounds under a Joint Munitions Command contract issued by the United States Army Field Support Command in Rock Island, Illinois.  

     Medico provided certificates of compliance that erroneously stated that all of the delivered items were treated in conformance with required contract specifications as they related to hardness and/or conductivity of the metal materials.  However, the Department of Defense identified several non-conforming items during a test of aluminum components supplied by Medico at the Army’s Pine Bluff Arsenal in Arkansas.

     While Medico did submit erroneous certificates of compliance, the United States Attorney’s Office is not aware of any instance in which the Tail Fin Cone Assemblies provided by Medico failed to perform as designed.  After the parties became aware of the issue the Joint Munitions Command contract was modified.  

     The case was investigated by the U.S. Department of Defense, Naval Criminal Investigative Service, Defense Criminal Investigative Service, and the U.S. Army’s Criminal Investigation Command.  The case was handled by D. Brian Simpson, of the United States Attorney’s Office, Civil Division.

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