Five Admit to Contract Fraud

An Oregon company, its owner, and four employees pled guilty to defense-contract fraud July 18, for their role in selling knock-off parts for Army Kiowa helicopters to the government while passing them off as genuine. Coos Bay, Ore.-based Kustom Products, Inc., and its owner, Harold Ray Bettencourt II, along with his sons Bo Bettencourt, Nicholas Ryan Bettencourt, and Peter Tracy Bettencourt, and the company’s officer manager, Margo Antoinette Densmore, are scheduled to be sentenced in a Portland federal court Dec. 10 and 11. According to court documents, the company and five individuals used a company that was not authorized to procure 750 fraudulent contracts in value of more than $10 million. Included were aviation locknuts for the Kiowa helicopters, which secure blades to the main rotor assembly. The criminal activity took place between 2006 and 2010. As part of their plea deal the guilty persons agreed to forfeit all money they made through fraudulent activities, including $365,500 in money that was sitting in 20 different bank accounts. They also forfeited numerous vehicles and recreational equipment that were purchased with illicitly acquired money.