Company, 2 Employees Charged With Fraud

A Van Nuys company and two of its officials have been charged in a scheme to defraud customers by selling them military and commercial aircraft bearings different from those they orderedS. Atty. Lourdes G. Baird said.

Baird said Alliance Bearing Industries routinely filled orders for bearings of certain specifications with different bearings, including some of inferior quality.

Also charged were Alliance Vice President Glenn Heller of Woodland Hills and Robert Baker of Simi Valley, the firm’s head salesman.

The company distributed bearings and bushings used in a variety of military and commercial aircraft. Prosecutors said none of the bearings have failed. They said they are trying to locate and test the substituted bearings and replace them if necessary.

Baird said Alliance and Heller were each charged with one felony count of mail fraud and three counts of making false statements to the Defense Department. Baker was charged with one count of making a false statement.

James C. Chalfant, an attorney for the company, said it and its employees plan to plead guilty to the charges Monday.

He said the firm substituted less than $50,000 worth of bearings and that most were the same quality as those ordered.

Baird said Alliance faces a maximum $2-million fine. Heller faces a $1-million fine and 20 years in prison, and Baker faces a $250,000 fine and five years in prison.