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Linda Mika, 73, of Jackson, pleaded guilty in federal court on Tuesday, July 23 to conspiracy to commit wire fraud, New Jersey's U.S. Attorney Philip Sellinger said in a news release. Her son, 53-year-old Kenneth Mika of Ewing, also pleaded guilty to the same charge on Tuesday, June 25.
According to court documents and testimony, Linda and Kenneth Mika defrauded the DoD and the Defense Logistics Agency (DLA) by illegally substituting products between March 2016 and April 2020.
The Mikas worked at Monmouth Marine Engines, a federal contractor in Brielle that entered into contracts with DLA to supply the DoD with replacement hardware. Linda's husband Paul Mika, a co-defendant in the case, owned the company.
Prosecutors said the Mikas got DoD contracts on Monmouth Marine's behalf by claiming they would provide products made by authorized manufacturers or suppliers.
"Once awarded the contracts, however, the Mikas sourced non-conforming substitute parts at a significantly reduced cost to fill the contracts," Sellinger said. "They did this to maximize their profit margin while also suppressing fair competition in the bidding of federal contracts."
The unauthorized parts were then shipped to DLA and other military purchasers in packaging that disguised the parts' identities.
The Mikas each face up to 20 years in prison and a $250,000 fine.
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