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East Northport businessman set up shell companies, feds say

Paul Skiscim, 62, of East Northport leaves federal

Paul Skiscim, 62, of East Northport leaves federal court with his wife in Central Islip on Monday, Feb. 29, 2016. The president of a Kings Park airplane parts supply company, Skiscim was arrested Monday, accused of supplying $2.8 million worth of parts through shell companies, officials said. Credit: Ed Betz

The president of a Kings Park airplane parts supply company, who had been disqualified by the government for providing defective parts, was charged Monday with continuing to supply $2.8 million worth of parts through shell companies, according to court papers.

Paul Skiscim, 62, of East Northport, the operator of Aerospec Inc., had supplied fasteners, such as rivets, under government contracts between 2003 and 2013, but he and the company were disqualified for supplying defective parts, Assistant U.S. Attorney for the Eastern District Charles Kelly said in court papers.

After he was barred, however, Skiscim set up a series of shell companies, using the names of relatives or fictitious people, and continued to bid on and win contracts, and supply parts, according to an investigation by the Pentagon’s Defense Criminal Investigative Service.

An unspecified number of the parts provided after Skiscim was declared ineligible were defective or did not meet specifications, the papers said.

The fasteners are used to ensure the structural integrity of aircraft.

The parts were intended for use on a number of military aircraft, including the B-52 bomber and the C-5 military transport, sources said.

The defective parts failed to meet the required strength and composition specifications, officials said. There is no indication in the court papers that any parts failed in use or caused accidents.

Sources said the investigation is continuing.

Although Skiscim’s shell companies had different bank accounts to accept government payments, Skiscim actually secretly controlled them, the papers said. Among the shell companies Skiscim set up were Sun Tech Air Parts, Aerocon Corp. and Specialty Components, the court papers said.

“It is critical that federal aircraft, including military aircraft, be built with the best parts available,” U.S. Attorney for the Eastern District Robert Capers said in a statement. “The defendant’s alleged scheme . . . not only violated the law but showed a callous disregard for the safety of federal employees and our military.”

At arraignment, Skiscim was not required to enter a plea.

If convicted on a charge of fraudulently selling defective airplane parts, Skiscim faces up to 10 years in prison. His attorney could not be immediately reached for comment.

Skiscim was released on a $1 million bail by U.S. Magistrate Anne Shields.

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