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Mon May 16, 2011
Owners of auto parts company charged with fraud
CHESTERFIELD TOWNSHIP, Mich. (AP) - Two brothers whose Michigan company supplies parts to the auto industry have been charged with fraud in an investigation of the quality of plastic.
Orman and David Bernhardt of Davalor Mold are accused of using less expensive materials than required in seat belt assemblies and then covering it up through false reports.
The fraud charge was filed Monday. Their lawyer is Bob Sheehan, and he says a guilty plea is planned.
He says there's "absolutely no safety issue." Sheehan says the parts were tested by federal regulators.
Davalor Mold is in Macomb County's Chesterfield Township, about 30 miles northeast of Detroit. The company works for Tier I auto suppliers, which supply parts for automakers. The alleged scheme lasted for two years until spring 2010.