Jackson mother and son admit ripping off Defense Department through their family’s company

TRENTON - A Jackson woman and her son have admitted to a years-long scheme to defraud the U.S. Department of Defense by providing military equipment parts through their family-owned company that were not allowed under the terms of their contracts with the federal government, said U.S. Attorney Philip R. Sellinger.

Linda Mika, 73, pleaded guilty in federal court on Tuesday to one count of conspiracy to commit wire fraud, according to a statement from the U.S. Attorney’s Office for the District of New Jersey.

Her son, Kenneth Mika, 53, of Ewing, pleaded guilty to the same count of the indictment on June 25, the statement said.

They now face a maximum sentence of 20 years in federal prison and a fine of up to $250,000, as a result of their plea agreements with the federal government.

Technically, the Mikas were employees of Monmouth Marine Engines, Inc. (known simply as Monmouth Marine) of Brielle, a maritime equipment and servicing facility on the Manasquan River owned by co-defendant Paul Mika, the patriarch of the family; husband to Linda Mika and father of Kenneth Mika. A more than 50-year-old company, Monmouth Marine was an approved federal contractor, according to the indictment against the family.

From March 2016 through April 2020, the Mikas devised a scheme and “conspired with each other and others to defraud the (Defense Department) and one of its combat logistic support arms, the Defense Logistics Agency, by engaging in a pattern of unlawful product substitution,” the statement said.

More coverage: Brielle marine company ripped off Defense Department with cheap parts, prosecutor says

The Mikas, on behalf of Monmouth Marine, falsely claimed that the military parts they were contracted to provide would be from authorized manufacturers or suppliers. However, once awarded the contracts, the Mikas instead sourced non-conforming substitute parts at a significantly reduced cost, according to the U.S. Attorney’s Office.

The mother and son did this to maximize their profit margin, while also suppressing fair competition in the bidding process of federal contracts, the statement said.

“The goal of the conspiracy was for the defendants to enrich themselves financially by engaging in an unlawful product substitution scheme designed to deliver cheaper, substitute replacement parts without authorization from the (Defense Department) or notice to the purchasing military parties,” read the indictment.

The non-conforming parts were then shipped to the Defense Logistics Agency or to various military purchasers in packaging disguised to conceal what they had done, Sellinger said.

Assistant U.S. Attorney Eric A. Boden, attorney-in-charge of the Trenton Branch Office of the U.S. Attorney’s Office, prosecuted the case.

Linda Mika was represented by Cedar Grove-based defense attorney Dennis C. Carletta. Kenneth Mika was represented by Eric W. Moran of New York.

Special agents from the Defense Department’s Criminal Investigative Service and FBI investigated the crimes.

Contact Asbury Park Press reporter Erik Larsen at elarsen@gannettnj.com.

This article originally appeared on Asbury Park Press: Jackson mother and son admit ripping off Defense Department through their family’s company