By Mark Scott
Buffalo, NY – Federal authorities in Buffalo say they've uncovered a scheme involving substandard magnesium powder from China imported into the United States. They say the powder was sold for making flares used by military aircraft to divert heat-seeking missiles.
US Attorney William Hochul says conspiracy and wire fraud charges were filed against six people and three companies Friday.
Investigators say the magnesium powder was mixed with aluminum nuggets and mislabeled to avoid a steep import tariff. The importing company then sold it to a business that removed the aluminum and resold the powder as American-made. Only magnesium made in the US or Canada can be used for military flares.
Federal agents say the non-conforming flares could have put military personnel at risk of injury.
"The critical aspect of this case is that the defendants stand accused of intentionally evading Department of Defense regulations, jeopardizing military service men and women and a critical American industry, and defrauding the government out of millions of dollars of tariffs and duties," Hochul said.
Among the companies charged is International Technology Group in Orchard Park.