Military Contractor and Board Chair Indicted

(AP) - An electronic-components manufacturer and its chairman were indicted yesterday on charges alleging they schemed to defraud the U.S. military of millions of dollars.

Herley Industries Inc. and Lee N. Blatt, the Lancaster-based company's founder and board chairman, allegedly reaped profits of up to 300 percent on more than $3.9 million in sales of electronic components for which it was the only supplier, according to the grand jury indictment.

The company sold an oscillator used in F-16 fighter jet radar systems and a component that prevents power-surge damage on E-2C Hawkeye aircraft.

The 29-count indictment includes charges of wire fraud, lying to the government, obstruction, aiding and abetting, and major fraud against the United States.

If convicted, Blatt, 78, of Vero Beach, Fla., could face jail time and both he and the company could be fined more than $13 million. The company also could be forced to forfeit more than $2.8 million paid under the contracts.

Herley designs and makes microwave equipment for defense, aerospace and medical use.