United States v. Hydro Extrusion Portland, INC., f/k/a Sapa Profiles, Inc.
Court Docket No.: 1:19-cr-00123 (E.D. Virginia)
United States v. HYDRO EXTRUSION USA, LLC, f/k/a Sapa Extrusions, Inc.
Court Docket No.: 1:19-cr-00124 (E.D. Virginia)
Criminal Charges: On May 13, 2019, Hydro Extrusion Portland, Inc., formerly known as Sapa Profiles, Inc. (“SPI”), is expected to plead guilty to an April 2019 Information charging it with one count of mail fraud, and Hydro Extrusion USA, LLC, formerly known as Sapa Extrusions, LLC (“SEI”), is expected to enter into a 3 year Deferred Prosecution Agreement to resolve an April 2019 Information charging it with one count of mail fraud. The violations relate to a scheme to conceal the inconsistent quality of aluminum extrusions produced by SPI for its customers, including U.S. government prime contractors and subcontractors, by falsifying thousands of failing tensile test results on those extrusions; to increase SPI’s and SEI’s profits and productivity by preventing delays in production and the costly scrapping of metal; and to obtain bonuses for the employees involved, which were calculated in part based on a production metric.
The employees generally falsified the tests in one of two ways. First, from in or about 1996 through in or about 2006, an SPI plant manager led a scheme to make thousands of handwritten alterations to failing test results by changing failing numbers that fell below the minimum required test results to appear to be passing. Those numbers were then typed onto a certification and provided to customers. Second, from in or about 2002 through September 2015, Dennis Balius, the SPI testing lab supervisor, led a scheme to alter tests within SPI’s computerized systems and provide false certifications with the altered results to customers. Balius pleaded guilty in July 2017 and has been sentenced for his role in the scheme. As part of the guilty plea and DPA, Hydro Extrusion Portland, Inc. will pay $34.1 million in restitution and comply with a requirement to report annually regarding remediation and implementation of a compliance program. SPI has also agreed to forfeit $1.8 million in ill-gotten gains.
For more information about the SPI Plea Agreement and the SEI Deferred Prosecution Agreement, please see below:
Victim Impact Statement: If you would like to attend the plea hearing scheduled for May 13, 2019 and make a Victim Impact Statement in person, please contact the Victim Assistance Line at (888) 549-3945 or email us at VictimAssistance.email@example.com.
If you would like to submit a Victim Impact Statement (or a letter addressed to U.S. District Judge Liam O'Grady) you may do so by mailing the Victim Impact Statement below (or a letter to Judge O’Grady) to: Victim Witness Unit, U.S. Department of Justice, Criminal Division, Fraud Section, 10th & Constitution Avenue, NW, Bond Building, Room 4416, Washington, DC 20530. You also may submit the Victim Impact Statement via email at Victimassistance.firstname.lastname@example.org or by fax at: (202) 514-3708.
The information on this website will be updated as new developments arise in the case. If you have any questions, please call the Victim Assistance Line toll-free at (888) 549-3945 or email us at VictimAssistance.email@example.com.
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