HARTFORD, CT -- A New York man has been sentenced to three years' probation and fined $100,000 for supplying customers with falsely remarked electronic components, many of which were used in US military and commercial helicopters.

US District Judge Michael P. Shea had previously found Jeffrey Kantz guilty of selling falsely marked parts to a Rhode Island distributor which in turn sold them to the US military. Many of the parts ended up in military and commercial helicopters, although none were determined to have been the root cause of any mechanical problems experienced by the helicopters to date.

"We are committed to prosecuting individuals who distribute unapproved microprocessor chips and other electronic components for use by the US military,” said US States Attorney Deirdre Daly. "This crime poses a potential threat to the safety of the men and women of our armed forces."

According to court documents and statements made in court, Krantz was the CEO and an owner of Harry Krantz, a New York-based company that bought and sold obsolete electronic parts for use by the US military and commercial buyers. In 2005, Krantz entered into a business relationship with Jeffrey Warga, the president and owner of Rhode Island-based Bay Components, to sell military microprocessor chips to Bay Components, which would in turn sell them to an undisclosed Connecticut company. Krantz knew that the Connecticut company wanted new and original chips, not falsely remarked chips.

The court found that, between 2005 and 2008, Krantz purchased and sold over 1,000 chips to Bay Components, which, in turn sold them to the Connecticut company. While the Connecticut company rejected some shipments because the chip contained the wrong die inside, Krantz continued to ship parts with falsified date codes and of dubious origins.

In July, Krantz pleaded guilty to one count of wire fraud and agreed to pay restitution in the amount of $402,650. He is prohibited from buying or selling electronic parts for two years, and gave up control of Harry Krantz LLC.

Warga pleaded guilty to one count of conspiracy to commit wire fraud in On Dec. 12, 2014, and awaits sentencing.

Craig W. Rupert, special agent in charge, Defense Criminal Investigative Service Northeast Field Office, added: “Distributors who opt for financial gain by introducing inferior products into mission critical equipment create an environment ripe for product failures. Such disregard puts the warfighter at an unnecessary risk, ultimately impacting the mission readiness of our military that the nation depends on." Inspector General. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.