News
May 24, 2008
Ex-NGK manager charged with fraud
Platinum extracted in stolen-parts scheme

A former manager for NGK Sparkplugs USA Inc. has been charged in federal court with fraud as part of scheme to extract platinum from scrap parts stolen from the plant.

Samuel Olivio, a onetime senior manager of materials and quality at the Sissonville plant, shipped stolen parts to companies that extracted the precious metal, according to documents filed this week in federal court. The companies then paid Olivio for providing the platinum.

Olivio was charged via an information, which generally means a defendant is cooperating with authorities. An information cannot be filed without a defendant's permission.

Between 2001 and May 2006, Olivio earned roughly $390,000 in proceeds from the scheme, the information maintains.

According to the information, Olivio devised a way to extract platinum from the scrap parts, then set up an arrangement with companies that did the extracting.

The information alleges that another NGK employee who worked in the shipping department was in on the scheme, and was paid roughly $53,000. Although that person's identity is known to the U.S. Attorney's Office, it is not revealed in the information.

The information also does not identify the companies that carried out the extractions.

Olivio is also charged with using the U.S. mail as part of the scheme. He allegedly deposited a check for $19,690.80 that had been mailed to him in exchange for scrap parts into his bank account on April 25, 2006.

Ellen Maxwell Hoffman, an attorney who represents NGK, confirmed Friday that Olivio no longer works for the company.

The information was filed on Tuesday, the day after NGK celebrated the opening of a new 85,000-square-foot addition to its Sissonville facility.

Last month, a federal grand jury indicted a California man on charges of mail and wire fraud for allegedly bilking NGK Sparkplugs USA Inc. out of almost $1 million by submitting fraudulent invoices for goods and services that the companies he worked for - Magnetics of North America Inc. and Right Hand Manufacturing Inc. - had not provided.

There is no indication that the two cases are related.

To contact staff writer Andrew Clevenger, use e-mail or call 348-1723.

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