Newswire:

Government Fraud, Unstable Grenades, And Strip Clubs

“A Georgia military contractor tricked law enforcement agencies into buying faulty stun grenades, ultimately leaving three FBI agents injured, federal prosecutors announced Monday.” [CNN]

Meet Pyrotechnic Specialties Inc, a military contractor located in Georgia. Pyrotechnic Specialties had a $15 million contract with the Department of Defense to provide them with “flash-bang” grenades.

What are “Flash-Bang” grenades? A supposedly non-lethal device that sets off a loud bang and flashing lights which confuses and startles targets. They’re used by the military, the FBI and local law enforcement. (The technical name is MK141 diversionary charges.)

So far so good, right? The problem is the MK141s made by Pyrotechnic Specialties contained a structural flaw that could cause them to randomly explode and really hurt people.

The Department of Defense found out about the flaw and ordered the company to fix it. Sure, the company said … but then they realized fixing the device would cost $3.72 per unit. Much cheaper and easier to simply print up new labels and pretend they’re fixed. Pyrotechnic Specialties kept selling them to the FBI for another $500,000.

On October 14, 2004, three FBI agents investigating a kidnapping in Philly were carrying the secretly faulty flash-bang grenades when one exploded in the agent’s vest pocket. All three were seriously injured.

Things we’d like to know more about:

• Slipped into the CNN story about the fraud was this line: “Last week’s indictment alleges that company officials bribed a federal official and paid for a visit to a strip club.” Wait, what?! Bribed him to do what? And a strip club?! We need more information, and stat.

• The feds also say it’s “unlikely” these dangerous, unstable grenades were shipped to our troops in Iraq and Afghanistan. Again, we need a little more here, guys.

The CEO and two other employees of the company are charged with conspiracy, money laundering and conspiracy to defraud the government. No word on the guy who got paid off with strippers.

--------

Comments