ML20134H334
| ML20134H334 | |
| Person / Time | |
|---|---|
| Issue date: | 08/15/1991 |
| From: | Vorse J NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION II) |
| To: | Mcknight S TENNESSEE, STATE OF |
| Shared Package | |
| ML20134F836 | List: |
| References | |
| FOIA-96-475 NUDOCS 9702110248 | |
| Download: ML20134H334 (7) | |
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l August. 15, 1991 l
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Steven G. 14cKnight : if ihyisigli[ !
Assistant U.S. Attorney .gr.ggniEin Eastern District of Tennessee ;
359 U.S. Post Office and Courthouse !
Chattanooga, Tennessee 37402
Dear Mr. McKnight:
This letter will confirm a conversation you had on August 7, 1991, with NRC !
Office of Investigations (01) Investigators Gary H. Claxton and Len Williamson.
At that time you indicated you were considering criminal prosecution of ,
Eugene P. (Pete) Tolbert. Tolbert, Vice President of Spectronics, Inc., {
allegedly supplied a fraudulent certificate of compliance in conjunction with ;
the sale of three motor driven relays to the Tennessee Valley Authority. This matter was investigated by OI under Case No. 2-90-014 entitled, "Stokley i Enterprises /Spectronics, Possible Counterfeit Relays Supplied by Vendor." '
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You were advised that 01 was in possession of two of the relays but that the third relay was in operation in a nonsafety-related system at the Sequoyah Nuclear Plant (SNP), Spring City, Tennessee. It is our understanding that SNP ;
personnel shoula be contacted in order to determine when the third relay can -
be removed from service. We will begin efforts to obtain this information ;
with the understanding that the relay will not actually be removed from i service unless and until a decision is made by your office to proceed with !
prosecution. :
If you should have any further questions regarding this matter, please contact Investigator Claxton, 01, Region II, telephone FTS 841-6502 or commercial (404) 331-6502.
^
Sincerely, i
James Y. Vorse, Director Office of Investigations i Field Office, Region II ;
cc: Mary C. Spearing, Chief j General Litigation & Legal Advice Section 1
- Criminal Division U.S. Department of Justice )
P.O. Box 887 i Ben Franklin Station Washington, DC 20044-0887 l
l i )\u ,m Yj 9702110248 970204 PDR FOIA LAMBERT 96-475 PDR
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MEMORANDUM TO CASE FILE 2-90-014 October 4, 1991 Telephone call from Special Agent David Compton, NIS
( 8 0 *. ' 144-4812 COMPTON called and provided the following information regarding the sentencing of William STOKLEY and the Stokley Corporation.
STOKLEY was ordered to serve 24 months in the federal penetentiary and pay $350,000 restitution as well as a $7,500 fine. The Stokley Corporation was ordered to pay $2,500,000 in restitution and a $30,000 fine. COMPTON said whatever restitution was personally paid by STOKLTV would reduce the amount owed by the corporation by a like amount.
COMPTON said he would provide a copy of the court order as soon as it became available to him.
Inv. Gary H. Claxton i Action required: Forward copy of court order to Kamal NAIDU, ,
f Vendor Branch, upon receipt from COMPTON ;
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moWey is going to prison an his othere who might be a thB W wt han to pay M.a ma- asme scovhias?' Com-lion hr selling esuntertrit to stock sakL He other ares sum, the Naq tur a nuclear panee are. kunsussaud te and other veneele. sel'ag soun parts to the mili; UA Distr 6ct Judge Nchard 3. . nut declined to elsberees. ..
KaDam en Fnday sentenced stokley had asked kr a prials to two years, with no partia, and term of naary four fears, taan (
ardared his Norfo!khand compary 81J mEoc to 88 usR!an and reselh>
to snans te restitutnam paymeet tien of mere than 35 anlDisst f.hs and to ser e Ane of en 0cc. Stehleye hevo a hint haak asasunt the Judas ordered the 88 year eid of $700,000 and Janet has e slakter to 'personaw soneribute esparnie esseunt et asso esen-saso.see nuet. Es alsotoward the uJ Aned stekiey sfAncionF sna.ck.aany.
u e sw.i.r win. .i; ap ala Am:stant U.s. Alamey Newpert Neve snigenmans piens-Kevia hL Comated said that sinos ed ty to one count of 4 ress the sold the Navy le . M2 stepasy snare tan W tr. rowert.ed to one sount of lav #,
used parts w!!b esunterdelt ruumer asunts of out]L coen 1panL' brand nobels in mest emen. 84chley As part et a pies - i j ,
represented the pane u seer, she the soarnrennt apsedTe drop.' ,
'g ett charges against Janet Rahley, The emerament said ti has bund tas compaars secretary
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powered attack sub Ra!timore and en ball until he voluntar$ nyests '
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The sucessahal tunis esw esurf Iar. P maident M. '1 thtak it sends a usammess to is gains to prison and his othere who rnigid be htk h wm hm to per m.s adn. amme acevides,*' com; hon hr selhag countertrit to stock said me sesr eres eerg-the Navy Air a atacteer psales are. luvusagneed te and emer vessels. semageeun partstotosith UA Distekt Judge Richard B. .tmat doctinet to elaborek. -
KaDent es Friday sentenced Staldey seek had asked br a prisbo:
to two years, with no parels, and term of meert fou_r Jews, Ames a(
enhred his Morfolk4ased ompary ItJ mEco lo $$ adWort and restite to make the rootstutism pyrnest tsaa of rners than as man The and to pay a Ane of see,000. Stehimys have a jotat henk secenan The)udas ordered the estearwed of steo,oes and Janet Ptakler has a Stalder to ' persona % contribube separate socount of 8000,000, Coen-5300,000 toward the NJ In1Rien stock said.
iment. He alan fined SteWay 87 Stahley, a lerneer electstetaa spada! Assistaat U.S. Attonny Newpat News SMid=daan plead.
Newts hL Commenck said that renes ad ty to one cause of somepinne?
toe 5 the sold the Navy to . His sempuy gultty toers tan SL5 b rewortsud '.o one asunt of ene See (
used parts with esunterbit name- couns of smutng coun pana. '
brand labels. In mest cases,8tahley As part of the plea - ?_
represented the parte as nee', the the sovemment apreedTo. drey
,potecutd said charges agahast Janet StaMay, The smununant said it has itnand the compaq's secretary ',
no cases in utdeh the counterfeit *reasurer.
parte inDed whee in tiest Defense attamey Wayne taash However said imuse aqped that ttw actual emeugt e.l-d dennreve amsta earned tran counierede soods was -*
destined for the reactor
- between $70,000 and $136,000.
coolant pumpe se the nuetaars WU11ern Stokley will remain free powened atLack sub Bahnare as.d on bau until he voluntarity reposts eevoettve matar4rtvan range des- ta petean oct. as. -;
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U.S. E! 0FFICE OF NUCLEAR REACTOR REGULATION WASHINGTON, D.C. 20555 q- ljllL Support-' -
n:r " t " November 27, 1991 Z roiA: __.
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- SUBSTANDARD,REFURB}NEffPOTTER-&'
NRCINFORMATIONNOTICE90-57 SUPPLEMENT BRUMFIELD 1: RELAYS REPRESENTED AS NEW '
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I Addressees All holders of operating licenses or construction permits for nuclear power f j reactors. '
4
! Purpose The U.S. Nuclear Regulatory Commission (NRC) is issuing this information notic d
i (IN) supplement to inform addressees of the final disposition of a case of i i wrongdoing that the NRC referred to the Naval Investigative Se I the Department of Justice.
sees and their suppliers, as well as their individual employees, that they can ,
be subject to criminal prosecution and penalties if they It isintentionally expected violate r a NRC regulatory requirements or other Federal criminal laws.
- ities and consider actions, as appropriate, to avoid similar problems. l However, suggestions contained in this information notice supplement are nl l-requirements; therefore, no specific action or written response is required. !
Description of Circumstances t 1
In NRC IN 90-57, the staff alerted addressees that Stokley Enterprises, Incorporated (Stokley Enterprises), of Norfolk, Virginia, modified and/or refurbished 22 rotary, non-latching MDR-type Potter & Brumfield P&B, Princeton, (P&B) relays ,
i and supplied them to the Shearon Harris Nuclear Power Plant.In addition, the NRC del i Indiana, originally manufactured these relays.that Stokley The Enterpris Defense (D0D) for use on nuclear powered submarines and notified the NIS. ;
NRC and the NIS conducted additional investigations of Mr. William M. Stokley) and Stokley Enterprises and provided the results to the U.S. Department of Justice for appropriate action.
- The U.S. Attorney for the t' astern District of Virginia i President of Stokley Enterprises, with sellingThe counterfeit indictmentelectronic charged that, parts to J i
D0D and the Shearon Harris Nuclear Power Plant.under the direction of from about August 1985 to September 13, 1990, l Mr. William M. Stokley, employees of Stokley Enterprises built or assembled l some of the parts with surplus electrical or used components, Mr. Stokley directed painting his and l l
cleaning some products to make them appear new. employees l
4 144210087-. Q D
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IN 30-57, Supplement 1 '
November 27, 1991
- Page 2 of 2 make the parts appear to be from established and recognized companies such as Cutler and Haniner, General Electric Company, or the > estinghouse Electric Company. All the established companies, except Potter & Brumfield, had properly registered their trademarks for these products on the principal register of the U.S. Patent and Trademark Office in Washington, D.C. The counterfeit nameplates used by Stokley Enterprises contained marks that were '
identical with or substantially indistinguishable from the genuine trademarks that had been registered in the U.S. Patent and Trademark Office.
On July 24, 1991, William Stokley pied guilty to one count of conspiracy to traffic in counterfeit goods and Stokley Enterprises, Inc. pled guilty to one ,
count of conspiracy to traffic in counterfeit goods, and two counts of traf-ficking in counterfeit goods.
By a judgement dated October 4,1991, Mr. Stokley was sentenced to two years in prison, and upon release from prison, he is to be on supervised release for a-term of three years. Mr. Stokley was sentenced to pay a fine of $7,500 and ordered to make restitution to the U.S. Government in the sum of $350,000.
His company, Stokley Enterprises Incorporated, was sentenced to pay a fine of '
$30,000 ($10,000 for each count),and ordered to pay restitution in the sum of *
$2,501,000, less the sum of restitution contributed by Mr. Stokley himself.
Discussion All persons involved in NRC-regulated activities (including suppliers and vendors) have a responsibility to comply with applicable NRC regulatory requirements and Federal law. The NRC expects and demands compliance and will seek criminal prosecution of wronadoing in cases of intentional or willful
~ violations of these requirements._ As evidenced by the case oescriDeo in this - .,
information notice supplement, criminal sanctions may include a fine and/or imprisonment.
Addressees may wish to distribute copies of this information notice supplement to their employees and suppliers. ;
This information notice supplement requires no specific action or written response. If you have any questions about the information in this supplement, please contact the technical contact listed below or the appropriate Office !
of Nuclear Reactor Regulation (NRR) project manager.
L ar es . Rossi, Directo Division of Operational Events Assessment Office of Nuclear Reactor Regulation Technical contact: Kamal R. Naidu, NRR (301) 492-0980
Attachment:
List of Recently Issued NRC Information Notices j
c Attachment IN 90-57, Supplement 1
[ November 27, 1991 Page 1 of 1 LIST OF RECENTLY ISSUED NRC INFORMATION NOTICES Date of Information Issuance Issued to Notice No. Subject 11/26/91 All holders of OLs or cps 91-77 Shift Staffing at for nuclear power reactors.
Nuclear Power Plants 11/26/91 All holders of Ots or cps 91-76 10 CFR Parts 21 and and vendors for nuclear 50.55(e)FinalRules power reactors.
11/25/91 All holders of OLs or cps 91-75 Static Head Corrections for nuclear power reacto s.
Mistakenly not included in Pressure Transmitter Calibration Procedures 11/25/91 All holders of OLs or cps 91-74 Changes in Pressurizer for nuclear power reactors.
Safety Valve Setpoints Before Installation 11/21/91 All holders of OLs or cps 91-73 Loss of Sbutdown Cooling for nuclear power reactors.
During Disassembly of High Pressure Safety injection System Check Valve 11/19/91 All holders of OLs or cps 91-72 Issuance of a Revision to for nuclear power reactors.
the EPA Manual of Protec-tive Action Guides and Protective Actions for Nuclear Incidents 11/12/91 All NRC medical licensees.
91-71 Training and Supervision of Individuals Supervised by an Authorized User 11/4/91 All holders of OLs or cps ,
91-70 Improper installation of for nuclear power reactors, l I
Instrumentation Modules '
11/1/91 All holders of Ols or cps 91-69 Errors in Main Steam Line for pressurized-water reactors, Break Analyses for Deter-mining Containment Parameters OL = Operating License CP = Construction Permit
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9 UNITED STATES #
,,,,, e .. 2,t NUCLEAR CEEULATORY COMMISSION *tAtt o 'Et* Paio 5 WASHINGTON, D.C. 20555 *****
N MM he G47 OFFICIAL DUSINESS L PENALTY FOR PRIVATE USE, $300 i
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120555078986 4 US NRC-Of 0FFICE DIRECTOR W/F 3-E-4 DC 20555 i WASHINGTON i b
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