Local company to pay feds $1.89 million

November 29, 1997


Staff Writer

A Hagerstown-area manufacturer of electronic parts will pay the United States government $1.89 million to resolve allegations that the company performed fraudulent quality tests on electronic resistors sold for military and other government use.

Angstrohm Precision Inc., located north of the city at 18400 Precision Place, has denied the allegations and admitted no wrongdoing in settling the civil matter, U.S. Attorney Lynne A. Battaglia said Friday.

Angstrohm was closed for business Friday, according to a message on the company's telephone-answering system. Efforts to reach company officials for comment were unsuccessful.


Angstrohm, an affiliate of the Malvern, Pa.,-based Vishay Intertechnology Inc., has sold resistors directly to the government through the Defense Electronics Supply Center in Columbus, Ohio, and also indirectly through private manufacturers, according to a news release from the office.

The company employs 44 people, according to the Hagerstown-Washington County Economic Development Commission's 1997 Business & Industry Directory.

In order to qualify for government sales, Angstrohm had to certify that its resistors passed rigorous testing set up by the Department of Defense, the release said.

An investigation conducted by the U.S. attorney's office that focused on Angstrohm's certifications between 1989 and 1992 uncovered that employees had improperly manipulated the testing of resistors in order to meet the government requirements, according to the release.

Specifically, employees would remove failed resistors from the "random" test batch, insert new resistors and retest, and Angstrohm would later fraudulently certify that the resistors met government requirements, according to the release.

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