Morris County Contractor Falsified Machine Gun Parts Tests: PD

WHARTON, NJ - The former chief operating officer of a Morris County custom manufacturing firm admitted that he provided inferior machine gun components to the U.S. Army and falsified tests the parts he delivered, according to U.S. Attorney Craig Carpenito.

Mark Colello, 54, of Hackettstown, pleaded guilty before U.S. District Judge William Martini in Newark federal court to two counts of making false statements and representations.

According to documents filed in this case and statements made in court:

• In April 2015, Colello’s company, Applied Resources Corporation in Wharton, was awarded government contracts by the U.S. Army, Department of Defense, to manufacture bipod assemblies for the M249 light machine gun that required the use of a specific grade of steel.
• Colello falsified test results for the hardness of steel used to construct the bipod assemblies and for the magnetic particle inspection of the head and collar joints for the bipods.
• The weaker grade steel and the faulty head and collar joints caused the legs of the bipods to fail when soldiers attempted to use them to support their machine guns.

The count of making false statements carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 28.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; and U.S. Army Criminal Investigations Command, Major Procurement Fraud Unit, under the direction of Special Agent in Charge L. Scott Moreland, for the investigation leading to today’s guilty plea.

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