Media man pleads guilty to major fraud against the United States and obstruction of audit

  • Published
  • By OSI Public Affairs
Kenneth Narzikul, 59, of Media, Pa., pleaded guilty
today to charges of major fraud against the United States, obstruction of a
federal audit, and making false claims to the government, in connection with
operation of his business, NP Precision, Inc., a machine tool business
located in Folcroft, Pa. U.S. District Court Judge L. Felipe Restrepo
scheduled a sentencing hearing for November 25, 2014.

Narzikul was president and 85% owner of NP Precision, responsible for all
aspects of NP Precision's business, which included contracting with federal
agencies to produce critical hardware components used in military
helicopters and other aircraft. At the guilty plea hearing, Narzikul
admitted to misusing progress payments on contracts with the United States,
by failing to pay subcontractors and requesting progress payments under the
contracts for costs that NP Precision had not actually incurred, and without
the intention of using the progress payments for the costs and contracts at
issue, in violation of Federal Acquisition Regulations (FAR). Narzikul
admitted that he schemed to fraudulently divert and steal approximately $1.2
million in progress payments that the United States paid NP Precision under
two contracts to produce drive shaft couplings for the U.S. Army helicopter
Model CH-47, commonly known as a Chinook helicopter. Consequently, as
Narzikul admitted, the United States received a very belated and many times
incomplete product, far later than required under the delivery schedules.
In addition, Narzikul admitted that he made false statements and caused
others at NP Precision to make false statements to government auditors, and
made false claims to falsely reflect progress on numerous Army and Air Force
contracts and to continue to receive progress payments from the United
States. Narzikul admitted further that he used the diverted funds to pay
outstanding obligations on other contracts and other business and personal
expenses of the defendant and his family.

Narzikl faces a maximum possible sentence of 20 years in prison,
three years of supervised release, a $1.5 million fine, and a $300 special
assessment. Full restitution of as much as $1.2 million also may be

The case was investigated by the Major Procurement Fraud Unit (MPFU) of the
United States Army Criminal Investigative Command (Army CID), the Defense
Criminal Investigative Service (DCIS); and the United States Air Force
Office of Special Inspection (Air Force OSI). It is being prosecuted by
Assistant United States Attorney Mary E. Crawley.

615 Chestnut Street, Suite 1250
Philadelphia, Pa. 19106
Contact: Patty Hartman, Media contact, 215-861-8525