(Reuters) - Herley Industries Inc. (HRLY.O: Quote, Profile, Research) on Tuesday said some of its operations have been suspended from receiving new contract awards from the U.S. Government, pending the outcome of legal proceedings.
The affected operations include facilities in Lancaster, Pennsylvania; Woburn, Massachusetts and Chicago besides Herley's subsidiary in Farmingdale, New York, the maker of microwave equipment for the defense and aerospace industries said in a statement
BACKGROUND ARTICLE:
U.S. charges Herley, chairman with fraud
LANCASTER COUNTY, PA - Federal prosecutors Tuesday slapped a Manheim Township defense subcontractor and its chairman with a 35-count indictment that alleges the company defrauded the U.S. Department of Defense.
U.S. Attorney Patrick L. Meehan said Herley Industries and its chairman, Lee N. Blatt, reaped profits of up to 300 percent on more than $3.9 million in sales of electronic components used by the Air Force and Navy.
Blatt, 78, is the founder and former chief executive of Herley, which develops and manufactures microwave technology for the defense, aerospace and medical industries.
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