Bogus Chinese Processors Used in Missile Systems

Tuesday, November 23, 2010



An administrator at VisionTech Components has pleaded guilty to charges she assisted the company in a conspiracy to sell sub-grade Chinese computer processors to Department of Defense contractors for use in U.S. military weapons systems.

Companies that bought the counterfeit components from their suppliers include Northrop Grumman, Raytheon Missile Systems, and BAE Systems.

The chips are said to have been used in the manufacture of critical missile systems for the U.S Navy, and some also found their way into non-military products like high-speed rail transportation equipment.

The company did over $15 million in contracts during the last three years. Workers would actually deface boxes the components were shipped in to disguise their origins, and clean up shoddy workmanship to pass off the counterfeit chips off as legitimate.

Stephanie McCloskey now faces up to five years in prison and a possible $250,000 fine for the one conspiracy charge she plead guilty to.

The DoD said that they do not have sufficient processes in place to detect counterfeit products within the defense contract supply chain, but were simultaneously confident that no U.S. military personnel were in danger from the compromised equipment.

Conspiracy charges should be the least of the problems companies and individuals face for committing such heinous acts, epsecially in light of the fact that our nation is at war.

Treason should be the charge, no plea deals should be accepted, and at the very least life imprisonment should be levied against the defendants.

Perhaps then the military will not have to worry about supply chain security incidents that put the lives of American service men and women in jeopardy, and weaken our overall national security.

Sources:  Special thanks to Greg George of GTI Advisors

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