Brielle Business Owners Charged With Defrauding U.S. Defense Dep.

BRIELLE, NJ – Three New Jersey residents have been charged for their alleged roles in a years-long scheme to provide unauthorized military equipment parts to the U.S. Department of Defense, U.S. Attorney Craig Carpenito said on Wednesday.

Linda and Paul Mika of Jackson, New Jersey, alongside Kenneth Mika, of Ewing, New Jersey, were arrested on July 29 and were scheduled to appear in Trenton federal court later that afternoon.

The Mikas own and operate Monmouth Marine Engines in Brielle, a year-round marine service facility, according to its website. Between at least March 2017 to February 2020, the Mikas allegedly conspired to defraud the Department of Defense and its support arm, the Defense Logistics Agency, by illegally substituting unauthorized products for authorized ones.

“Today's arrest of Linda Mika, Paul Mika and Kenneth Mika reflects the continuing impact federal and state partnerships have on combating those who defraud the Department of Defense,” Acting FBI Special Agent in Charge Joe Denahan said in a statement. “These contractors of Monmouth Marine Engines Inc. knowingly provided substituted parts for military equipment for their own personal gain. We will continue to investigate these types of schemes and hold those who endanger the U.S. military accountable.”

After obtaining contracts with the government, the family falsely claimed that the military parts they were to provide would be exact models produced by authorized manufacturers. However, according to the U.S. Attorney’s Office, the Mikas sold substitute parts at a significantly reduced rate to fill the contracts.

The parts were also shipped from Monmouth Marine to the Defense Logistics Agency in packaging that concealed the parts’ true identity.

“As described in the criminal complaint, these defendants sought to make a greater profit by substituting products that were not those they had contractually agreed to provide to the Department of Defense,” U.S. Attorney Carpenito said. “By doing so, they potentially risked the safety of our men and women in uniform. We will continue to work with our law enforcement partners to root out this kind of fraud.”

All three were charged with one count of conspiracy to commit wire fraud. Each charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.

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