Former lab director of Navy steel supplier pleads guilty to major fraud on U.S.

TACOMA, Wash. — A former lab director at Bradken Inc., the U.S. Navy’s leading supplier of cast high-yield steel for naval submarines, has pled guilty to major fraud on the United States.

Elaine Thomas, the former Director of Metallurgy, pled guilty to defrauding the United States by falsifying test results that measure the strength and toughness of steel used in Navy submarines, according to U.S. Attorney General Nick Brown.

The Navy requires that the steel used in their submarines meets certain standards to ensure that it does not fail under certain circumstances, such as a collision.

Thomas falsified results for over 240 productions of steel that did not meet the Navy’s standards. This represents a substantial percentage of the castings Bradken produced for the U.S. Navy.

Thomas faces up to 10 years in prison and a $1 million fine when she is sentenced on Feb. 14.

Court filings indicate there is no evidence that Bradken’s management was aware of the fraud until May 2017 when a lab employee discovered altered test cards and discrepancies in the company’s records.

In June 2020, Bradken entered into a deferred prosecution agreement, accepting responsibility for the offense and agreeing to take remedial measures, according to a news release.

Bradken also entered into a civil settlement, paying more than $10.8 million to resolve allegations that the foundry produced and sold substandard steel components for installation on U.S. Navy submarines.

Measures to monitor the substandard parts will likely result in increased costs and maintenance. Nevertheless, the Navy has taken extensive steps to ensure the safe operation of the affected submarines.

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