ML20136B390

Forwards Press Release from DOJ Re Guilty Plea by W Stokely in Case Involving Counterfeit Electronic Parts

ML20136B390
Person / Time
Issue date:	08/02/1991
From:	Taylor J NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:	Chilk S, Rogers K, The Chairman NRC COMMISSION (OCM)
Shared Package
ML20136A614	List: IA-96-475, Rept of 900706 Interview W/Ma Earl ML20136A610 ML20136A701 ML20136A837 ML20136A896 ML20136B050 ML20136B077 ML20136B195 ML20136B239 ML20136B290 ML20136B390 ML20136B403 ML20136B411
References
FOIA-96-475 NUDOCS 9703100257
Download: ML20136B390 (5)

Text

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AUC 0 21991 U.S. NfiC MEMORANDUM FOR: The Chairman

!SSI AUG -5 A.9 & 31 Commissioner Rogers Commissioner Curtiss =. ff E [f INVEST 6MAK Commissioner Remick liEA030ARTERS FROM:

James M. Taylor Exe Hve Di ector for Operations

SUBJECT:

OUNTERFEIT ARTS GUILTY PLEA Enclosed for your aformatiyn-is a press release from D0J regarding a guilty. plea by Wil i m Stokle

'h a case involving counterfeit electronic parts. NRC's Office f4 nvestigations originally alerted the Navy to this problem.

Original Signed E4 James M. Taylor James M. Taylor Executive Director for Operations

Enclosure:

As stated cc: SECY GPA OGC Distribution:

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PRESS RELEASE f

FOR IMMEDIATE RELEASE NORFOLK, VIRGINIA JULY 24, 1991 l

UNITED STATES ATTORNEY FOR THE EASTERN l

RENNETH E. MELSON, DISTRICT OF VIRGINIA, AND NEILL RDBINS, SPECIAL AGENT IN CHARGE,

'i MID-ATLANTIC REGIONAL FRAUD UNIT, NAVAL INVESTIGATIVE SERVICE, l

l NORFOLK, ANNOUNCED TODAY THE DISTRICT COURT ACCEPTED THE QUILTY FLEAS OF WILLIAM M.

870XLEY AND ST0XLEY ENTERPRISES IN A CASE INVOLVING COUNTERFEIT ELECTRONIC FARTS SOLD TO NAVY WARS

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1 COMMERCIAL NUCLEAR REACTOR 5.

l NILLIAM M. STOKLEY ENTERED A PLEA of GUILTY To COUNT ONE i

THE INDICTMENT CMARGING HIM NITH CONSPIRACY TO TRAFFIC IN i

j COUNTERFEIT 000DS. WILLIAM W. ST0XLEY IS A 39 YEAR-OLD NORFO 4

I RESIDENT.

sT0XLEY ENTERPRISES, THE CORPORATION, ENTERED A PLEA Or GUILTY j

I TO COUNTS ONE, WINE, AND THIRTEEN OF THE INDICTMENT. STOKLEY ENTERPRISES 18 IOCATED AT 880 AVENUE J., IN NORFOLK, VIRGINIA.

UNDER THE DIRECTION OF WILLIAM N.

8'T0KLEY, SOME STOKLEY ENTERPRISES EMPLOYEES BUILT, ASSEMBLED OR CHECKED PARTS FROM ABOUT AUGUST 1985, TO ABOUT SEPTEMBER 13, 1990. EMPI4YEEs, UNDER THE DIRECTION OF WILLIAM M.

STOELEY BUILT OR AssEMsLED s0ME OF THE PARTS WITH SURPLUS ELECTRICAL AND NEW OR USED PARTS, FAINTING AND

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l CLEANING SOME PRODUCTS TO MAKE THEM APPEAR NEW. AS EACH of THESE PARTS WAS COMPLETED, WILLIAM M. ST0XLEY WOULD DIRECT EMPI4YEES TO ATTACH COUNTERFEIT LASEL PLATES TO MAKE THE PARTS APPEAR To SE A PART FROM AN ESTABLISMED AND RECOGNIZED COMPANY SUCH AS GENERAL ELECTRIC

(")E"),

WESTINGTONHOUSE, JETFERSON

ELECTRIC, CUTLER-MAMMER, OR SPD TECHNCIOGIES (D/5/A ITE). GENERAL ELECTRIC, WESTINGNOUSE,

.7EFFERSON

ELECTRIC, CUTLER-HAMMER, AND SPD TECHNDI4GIES HAD ALL PROPERLY REGISTERID THEIR TRADEMARKS FOR THESE PRODUCTS ON THE PRINCIPAL REGISTER OF THE UNITED STATES PATENT AND TRADEMARK OFFICE IN WASHINGTON, D.C.

AND THE TRADEMARKS WEP.E IN USE.

THE COUNTERFEIT LABEL PLATES NHEN USED BY ST0KLEY ENTERPRISES, CONTAINED MARKS THAT WERE IDENTICAL WITH OR SUBSTANTIALLY

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l INDISTINGUISHABLE FROM THE CENUINE TRADEMARKS THAT MAD BEEN REGISTERED IN THE UNITED STATES PATENT AND TRADEMARX OFFICE.

l WILLIAM M.

STOKLEY, CPERATING THROUGH STOKLEY ENTERPRISES, MANUFACTURED A VARIETY OF COUNTERFEIT PARTS, SUCH A3 CIRCUIT BREAKERS, TRANSFORMERS, AND SHIP &OARD CONTROLLERS. THE8E PARTS WERE THEN SOLD TO VARIOUS CUSTOMERS, INCLUDING THE UNITED STATES NAVY AND SUBCONTRACTORS WORKING ON NAVY VESSELS. THE PARTS WERE DESTINE To SE USED IN IMPORTANT APPLICATION. FOR EXAMPLE, SOME OF THE PARTS l

WERE To BE USED IN THE OVERHAUL OF THE PONER CONTROL SYSTEM OF THE REACTOR COOLANT PUMPS AND THE PRESSURIEER FOR THE NUCLEAR-POWERED FAST ATTACK SUSMARINE USS BALTIMORE. ALSO A CIRCUIT BREAKER WAS INSTALLED IN SUPPORT OF A FIRE CONTROL RADAR ON THE AEGIS CIAss l

GUIDED MISSILE CRUISER U88 PRINCETON AND WAS IN USE IN THE VESSEL WHEN IT WAS DEPLOYED TO THE PERSIAN QULT DURING OPERATION DE8ERT i

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STORM. WILLIAM M. STOKLEY ALSO SENT 22 MOTOR-DRIVEN RELAY SHEARON MARRIS NUCLEAR PONER PLANT IN NEW NILL, WORTH CAROLINA.

WILLIAM M.

STOKLEY, AND STOELEY ENTERPRISES WOULD SUY f

COUNTERTEIT !ASEL P!.ATES FROM VIRGINIA ART METAL AND PLASTIC j

COMPANY TO INSTALL ON REWORKED PARTS. THE PHONEY IABEL PIAT ADDED To MAKE PRODUCTS APPEAR TO BE SRAND KNEN AND MANUF l

LEGITIMATE ELECTRONIC COMPANIES.

THESE LABEL PLATES LEAD TO CONFUSION, DECSPTION AND MISTAKE BY CUSTOMERS OF THE STOKLEYS.

AS A RESULT OF PLEADING GUILTY TO COUNT ONE OF THE INDICTMENT, WILLIAM STCXLEY FACES A MAXIMUM POSSIBLE PRISON TERMS OF 5 YEA AND $250,000 IN FINES. THE COMPANY FACES A MAXIMUM PENALTY OF IN FINES OR NOT MORE THAN TWICE THE GROSS GAIN OR TWICE

$2,500,000 THE GROS $ IAS$ AS A RESULT OF THE CORPORATION'S ACTIVITIES.

THE INVESTIGATION OF STOKLEY AND HIS COMPANY NAS CONDU THE NAVAL INVESTIGATIVE SERVICE AND BY THE NUCLEAR REGUIATORY COMMISSION, SAID MELSON.

MELSON PRAISED THE ELEVEN NONTH INVESTIGATION, CITINC IT AS AN EXAMPLE OF CIASE COOPERATION SENEEN DIFFERENT FEDERAL AGENCIES.

MELSON NOTED TRAT "THE GOVERNMENT WILL NOT TOLERATE DEC IN THE DELIVERY OF SERVICES TO THE GOVERNMENT, PARTICULARLY WHERE THE LIVES OF U.S. SERVICEMEN AND CITIZENS MAY BE PUT IN JEOPAR ME FURTHER STATES TMAT "THIS OFFICE, IN CONJUNCTION WITH THE PEDERAL INVESTIGATIVE

AGENCIES, WILL AGORESSIVELY PURSUE PROSECUTION STRATEGIES To IDENTITY, APPREHEND, AND CONVICT THOSE WHO TRY To SUSVERT THE INTEGRITY OF GOVERNMENT CONTRACTING PROCUREMENT."

SENTENCING IS SET FOR SEPTEMBER 25, 1991 AT 9:00 A.M.

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ASSISTANT UNITED STATES ATTORNEY PAUL G. CASSEL AND SPECIAL ASSISTANT UNITED STATES ATTORNEY KEVIN H. COMSTOCK HANDLED THE CASE

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10R NEL&oS*E OTTICE.

FURTHER QUESTIONS MAY BE DIRECTED To THE UNITED STATES 4

f ATTCRNEY'S OFFICE AT 804-441-6331.

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