NJ Defense Contractor Sold DoD $1.8 Million In Fake Parts: Feds

A South Jersey man has admitted to defrauding the U.S. Department of Defense (DoD) out of $1.8 million by providing the wrong military equipment parts, U.S. Attorney Craig Carpenito announced.

He also admitted to illegally accessing sensitive, technical information despite not being a United States citizen, according to authorities.

Oben Cabalceta, 53, of Atco, pleaded guilty to an information charging him with one count of wire fraud and one count of conspiracy to violate the Arms Export Control Act.

Cabalceta owned two manufacturing companies in West Berlin, according to documents filed in the case and statements made in court. Those companies were Owen’s Fasteners Inc. (Owen’s) and United Manufacturer LLC (United).

Cabalceta admitted that between August 2004 and March 2016, his companies obtained DoD contracts by telling them the parts he would provide would be the exact same as those authorized by manufacturers, even though he knew they wouldn’t be, according to authorities.

The DoD contracts specified that the military parts were critical application items for military equipment, including aircraft.

Contrary to the contract, Cabalceta either used his companies to contract with local manufactures to supply non-conforming parts or made cheap parts himself, according to authorities.

The non-conforming parts were shipped from New Jersey to various DoD locations around the country, according to authorities. DoD paid Owen’s and United $1,890,939 for those parts, authorities said.

In August 2005 and November 2010, he had his brother-in-law, Roger Sobrado, submit to the DoD a fraudulent application for access to export controlled drawings and technical data on behalf Owen’s, according to authorities.

In 2015, he had another accomplice submit to the DoD a fraudulent application for access to export controlled drawings and technical data on behalf Owen’s, authorities said.

Cabalceta also admitted that he was a native and citizen of the Republic of Costa Rica who overstayed his tourist visa in 2000 and was not lawfully in the Untied States, according to authorities.

Cabalceta acknowledged that access to the controlled drawings and technical data was limited to citizens of the United States and those lawfully in the United States, authorities said.

He admitted that on July 28, 2011, and at various times between January 2013 and November 2015, while unlawfully in the United States, he accessed or downloaded drawings that were sensitive in nature that required special access.

The count of wire fraud to which Cabalceta pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of conspiracy to violate the Arms Control Export Act to which he pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for Aug. 2.

Sobrado previously pleaded guilty to conspiracy to commit wire fraud, conspiracy to violate the Arms Export Control Act, and income tax evasion. His sentencing is pending.