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Arrest made in international fraudulent aircraft engine parts investigation

Photo of CFM56-2 engine from CFM InternationalAn individual has been arrested in connection with the discovery of counterfeit aircraft parts worldwide and a new criminal investigation into fraud has been launched. The Serious Fraud Office raided the home of AOG Technics founder and director on Dec. 6, arresting him and announcing a large-scale investigation into the company's fraudulent activities. SFO investigators, with officers from the National Crime Agency, seized material from a site in the area and one individual was being questioned. The SFO is working closely with the UK Civil Aviation Authority and other regulators to examine whatever information is found to advance the criminal investigation into suspected fraud at AOG and determine the grounds, if any, for prosecution. Business Insider reported that the person in custody is AOG founder and director, Jose Alejandro Zamora Yrala.RELATED STORY:Counterfeit engine parts found in over 100 planes worldwide "This investigation deals with very serious allegations of fraud involving the supply of aircraft parts, the consequences of which are potentially far-reaching," SFO Director Nick Ephgrave QPM said. "The SFO is best placed to take this investigation forward vigorously and we are determined to establish the facts as swiftly as possible." Counterfeit parts were found in about 100 planes worldwide, including aircraft belonging to Southwest, United and American Airlines. Thousands of parts sold by London-based distributor AOG Technics had falsified paperwork. About 100 engines globally were identified as containing these counterfeit parts. The SFO reports that planes are grounded in the U.S. and UK as a result. These problems were found in CFM56 engines, which power some Airbus and Boeing models and is the world's best-selling engine. Jet engine maker CFM International, a joint venture between GE Aerospace and Safran Aircraft Engines, discovered the parts in engines it repaired and issued a suit against the company in the London High Court for access to documents for parts in engines made since 2015. On Aug. 4, the European Union Aviation Safety Agency published a Suspected Unapproved Parts notification, stating that several CFm56 engine parts distributed by AOG were supplied with falsified Authorized Release Certificates. In one confirmed example, the approved organization on the ARC said the form did not originate within the organization and the certificate was falsified. The SUP reported that AGO did not provide information as to the source of the parts and the falsified ARCs. The FAA published a notification on Sept. 21 to warn aircraft owners, operators, manufacturers, maintenance organizations, parts suppliers and distributors. The agency warned that GE bushing part number 1856M94P01 and associated FAA forms 8130-3 (EASA Form 1) were falsified. While only about one percent of the 23,000 existing CFM56 engines have been found to be affected, court filings indicate there is evidence to prove that thousands of jet engine parts sold by AOG to airlines are fitted with the affected engines. The majority of the counterfeit parts were discovered in CFM56 engines and some in CF6 engines, used to power cargo planes and manufactured by GE. The CFM56 engines are used to power the older generation of Boeing 737s and about half of the previous generation of Airbus A320s. Some aircraft were found to have suspect parts during routine maintenance. Other parts were passed off as new but had obvious signs of wear and tear. Without proper paperwork, there is no way to know the airworthiness of a component or the aircraft, making the affected parts unusable.Possible characteristics of falsified parts, from the FAA notice The goal of the lawsuit was to force AOG to release valid information about the true scale of deception and to help remove falsified parts from aircraft. About 100 aircraft were suspected of being impacted by the falsified parts, meaning these aircraft must be taken out of service while airlines arrange to have the parts removed and replaced. AOG has operated in the UK since 2015, supplying parts for passenger aircraft engines globally. Many of these parts were sold to overseas companies that install airline parts, as well as some UK airliners, maintenance providers and parts suppliers. Fraudulent parts can put safety at risk. The SFO will move forward with its investigation to determine more about the scale of the deception and the possibility of an eventual prosecution.
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