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Home » Distributor Fraud Case Plays Out

Distributor Fraud Case Plays Out

MRO supplier to Lockheed Martin files Ch. 7 bankruptcy

By    Lindsay  Young 
December 25, 2005
More about:  Industrial Distribution,  Legal Issues in Wholesale Distribution

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.


Industrial distributor Tools and Metals Inc.'s former president and CEO Todd Loftis pleaded guilty this month to conspiracy to defraud the government. Under his leadership, TMI reaped at least $18 million in fraudulent profits from Lockheed Martin, by far its biggest customer. Lockheed ...

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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.


Industrial distributor Tools and Metals Inc.'s former president and CEO Todd Loftis pleaded guilty this month to conspiracy to defraud the government. Under his leadership, TMI reaped at least $18 million in fraudulent profits from Lockheed Martin, by far its biggest customer. Lockheed ...



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