NJ Mother-Son Duo Plead Guilty in Scheme to Defraud DoD

Employees of Monmouth County Marine Equipment and Servicing Company Admit Roles in Scheme to Defraud U.S. Department of Defense.Photo byMorristown Minute

Scheme Involves Substitution of Military Equipment Parts in Violation of DoD Contracts

NEW JERSEY — Linda Mika, 73, of Jackson, New Jersey, and her son, Kenneth Mika, 53, of Ewing, New Jersey, have both entered guilty pleas in a federal court for their involvement in a fraudulent scheme targeting the U.S. Department of Defense (DoD). The scheme, which lasted from March 2016 to April 2020, involved the provision of non-authorized military equipment parts in violation of their contractual obligations.

The Mikas were key employees at Monmouth Marine Engines Inc., a Monmouth County-based maritime equipment and servicing company that had secured contracts with the DoD through the Defense Logistics Agency (DLA). The contracts required Monmouth Marine to supply specific military parts from authorized manufacturers. However, the Mikas admitted to engaging in a pattern of substituting these items with cheaper, non-conforming parts to increase profit margins and suppress competition.

This deception not only breached federal contracting regulations but also posed potential risks to military operations, given the critical nature of the parts involved. The fraudulent activities were uncovered through a series of investigations revealing that the substituted parts were shipped to the DLA and various military branches in misleading packaging to conceal their true nature.

Both Linda and Kenneth Mika pleaded guilty to conspiracy to commit wire fraud, a charge that carries a maximum penalty of 20 years in prison and a $250,000 fine. Their sentencing dates are pending.

This case highlights the significant implications of defrauding military procurement processes and underscores the federal government’s commitment to maintaining the integrity of its supply chains. U.S. Attorney Philip R. Sellinger emphasized the importance of upholding stringent standards for military suppliers to ensure the safety and effectiveness of equipment used by the nation’s armed forces.

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