A Georgia military contractor, Pyrotechnic Specialties Inc. or PSI, is accused of a conspiracy to defraud the government and to sell defective stun (or “flashbang”) grenades to the military and both state and federal law enforcement officials. Not only were three FBI agents injured, but PSI is accused to luring federal officials with gifts at stripper joints and other perks. Officials are now facing charges of conspiracy, money laundering, mail fraud and defrauding the government.
It is astonishing at this day and age that such a remarkably stupid series of actions would be taken by a company. PSI is accused of re-labeling and selling rejected grenades.
Three officials are named: CEO David J. Karlson, sales representative F. Brad Swann and production manager Daniel Ramone.
The problem with the grenade was that a plastic piece could crack and cause a seriously dangerous situation, including improper detonation. In one case, it exploded in a car with FBI agents.
Obviously, these guys are likely toast. They may, however, also face tort liability for a defective product. Here, both a design and manufacturing defect could be alleged. Indeed, grenade manufacturers have been sued in the past for product defects. One such case involving improper detonation was the McGonigal v. Gearhart case, here.
For the latest story, click here.
“PSI is accused to luring federal officials with gifts at stripper joints ….”
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“Flashbangs” — so that’s what they are calling it now. I have renewed sympathy for Eliot Spitzer, who was, quite obviously, worker under cover(s).
oops, meant “working under ….”
I see this as one more in a long list of disasters resulting from privatizing our military and civilian law enforcement. Contracts are so profitable to these mercenary companies. Owners are either well connected, long gone or both when the consequences hit (in this case literally). This is reprehensible.
Dina Rasor has written an excellent book on this topic called: Betraying Our Troops, the Destructive Results of Privatizing War.
Jill:
Once again you lefties demonstrate you are totally oblivious to the truth and facts. Nothing matters except big government that results in big government failures.
We PRIVITIZED much because of a revolt against GOVERNMENT wasting money, remember?????
Sure, lets go back to the days of big government and then we can wait for the stories of how Government is wasting billions and we need to privatize again.
The pendulum just keeps swingin cause liberals never learn.
Niblet:
I am with you, let’s move to the brave new world where the private sector wastes our taxpayer money. Viva Qui Tam!
Here, Nibs – these will keep you busy for a while…
http://www.despair.com/viewall.html
A much more interesting legal story may be in the dismissal of the indictment by the District Court two weeks before trial.