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John J. Palie Jr., 62 ,of Tiverton, R.I., and John J. Palie III, 42, of Plymouth, Mass., waived their right to be indicted and pleaded guilty on June 27 before U.S. District Judge Stefan R. Underhill in Bridgeport to fraud stemming from their having sold titanium to a Connecticut defense subcontractor, according to John H. Durham, United States Attorney for the District of Connecticut.
The U.S. government contends that the losses sustained by the multiple victim companies that purchased fraudulently misrepresented titanium total more than $1.3 million.
According to court documents and statements made in court, John Palie, Jr. is the owner and chief executive officer of A&P Alloys, Inc., a company in West Bridgewater, Mass., that acquired and sold specialty metals, including titanium.
His son, John Palie III, was a manager at A&P, having responsibilities for, among other things, the purchase and sale of titanium, and the preparation of titanium orders for shipment and delivery to customers.
In pleading guilty, Palie Jr., and Palie III admitted that they arranged two separate titanium sales to a Connecticut-based aircraft parts manufacturer that involved false representations about the source and quality of the titanium, according to Durham.
The aircraft parts manufacturer supplies titanium parts to a company that manufactures aircraft engines, including engines for U.S. Air Force fighter jets.
In April and May 2012, the father and son allegedly arranged a sale of 11 pieces of titanium to the Connecticut aircraft parts manufacturer, representing that the titanium had been certified as meeting an advanced aerospace quality standard when, in fact, it had never been certified as such.
In 2013, the pair arranged another sale of titanium to the Connecticut aircraft parts manufacturer with the engine manufacturer as the end buyer.
Palie Jr. and Palie III each pleaded guilty to two counts of mail fraud, an offense that carries a maximum term of imprisonment of 20 years on each count. Sentencing is scheduled for Sept. 19.
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