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December 25, 2005
Distributor Fraud Case Plays Out
MRO supplier to Lockheed Martin files Ch. 7 bankruptcy
By Lindsay Young
In a sole-source contract gone bad, the former president and CEO of Texas-based industrial distributor Tools and Metals Inc. pleaded guilty this month to defrauding the government by overcharging Lockheed Martin Aerospace at least $18 million for MRO supplies it used in Department of Defense contracts at three plants. The charges began a downward spiral that culminated in Chapter 7 bankruptcy in September and a civil suit against Loftis and other former board members by TMI’s new owners.
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