Man gets two years in defense fraud case

The president of an aerospace company admits to selling used parts as new.

By KEVIN GRAHAM, Times Staff Writer
Published October 13, 2007

TAMPA - A man who ran a St. Petersburg aerospace company will spend two years in prison for passing off used parts as new to the Department of Defense, a federal judge ordered Friday.

Jerry Scott Smith, 34, pleaded guilty in June to wire fraud. Federal prosecutors say the government paid him $202,510 for 91 fraudulent contracts. U.S. District Judge Richard A. Lazzara ordered him to repay that much in restitution. Smith told the judge that he received only about $65,000 in profit after costs and splitting the money with a business partner.

Court documents show that Smith was president of Triton Aerospace between July 2004 and October 2005 when he coordinated the Defense Department contracts. Smith said the government quoted the prices for the business he received. Prosecutors say that Smith fraudulently supplied parts for Navy and Air Force planes, including the B-52 bomber.

He would shop around for surplus or overhauled parts, which he bought at a discount, then sell them as new to the Department of Defense, prosecutors said.

"This past year and a half has been a nightmare," Smith told the judge. "I apologize for wasting the court's time. It's an embarrassment to my family."

Before imposing a sentence, Lazzara talked about Smith's criminal history. Smith received probation for pleading guilty to writing two worthless checks, one to Publix and one to Hungry Howie's for $15, the judge said.

Smith said he had the money when he wrote the checks but had recently changed bank accounts. He told the judge he pleaded guilty to pay the fine and bring resolution to the case.

When Lazzara asked Smith about a charge for driving with an invalid license, Smith said his insurance had lapsed, and he didn't have money at the time to renew it.

Lazzara will allow Smith to remain out of prison until at least Dec. 14.

"I don't condone what he did," Lazzara said. "But I don't view him as a danger to society."

Kevin Graham can be reached at 813 226-3433 or kgraham@sptimes.com.

[Last modified October 13, 2007, 00:11:40]