A defense contractor is admitting that it lied about replacement parts sold to the military.

Staff Gasket is pleading guilty to procurement fraud.

Court documents say the firm sold replacement parts made outside of the U.S., even though its contracts with DoD required them to come from domestic manufacturers.

The company will need to pay back more than $750,000 in losses and a fine that could reach one and a half million dollars.

The firm’s president could face five years in prison, on top of his own fine.

This story is part of Federal News Radio’s daily DoD Report. For more defense news, click here.

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