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Goleta-based defense contractor sentenced to prison for selling fraudulent parts to military

Department of Justice U. S. Attorney's Office for the Southern District of Ohio

GOLETA, Calif. – Timothy W. Foley, operator and co-owner of Parts Source International Inc. based in Goleta, was sentenced to three months in prison on Tuesday, Aug. 1 for crimes related to fulfilling U. S. Department of Defense contracts with faulty parts.

Foley was also ordered to pay restitution of more than $1.3 million by the U. S. District Court in Columbus, Ohio.

According to court documents, Foley admitted that from 2012 to 2019 he conspired to supply non-conforming parts to the Department of Defense (DoD) for use on military weapons systems and invoiced the Defense Finance and Accounting Service in Columbus, Ohio.

Instead of fulfilling those orders with the exact equipment specifications provided by the DoD, Foley instead submitted unapproved substitutions in fraudulent packaging for 131 quotes detail testing and court documents.

Parts Source International, Inc. received a total of approximately $1.36 million in payments for those parts relayed a press release from U. S. Attorney's Office for the Southern District of Ohio.

Foley pleaded guilty in November of 2022 to conspiring to commit wire fraud and to money laundering.

“Protecting the integrity of the U.S. Department of Defense (DoD) supply chain is a priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DoD Office of Inspector General,” said Patrick J. Hegarty, Special Agent in Charge of the DCIS Northeast Field Office. “The introduction of defective parts into the DoD supply chain endangers the lives of American service members and threatens our military readiness. The DCIS is committed to working with the U.S. Attorney's Office, Southern District of Ohio, the Defense Logistics Agency, and our law enforcement partners to ensure that individuals who engage in fraudulent activity, at the expense of the U.S. military, are investigated and prosecuted.”

Jimmy Daryl Thomas of White House, Tennessee was listed as Foley's co-defendant. According to court documents, Thomas assisted Foley in procuring cheaper, non-conforming parts on at least 29 contracts as well as providing false packaging and invoices used to defraud the DoD.

Thomas was sentenced in May of 2023 to two months in prison, three years of supervised release for participating in the wire fraud conspiracy, and was ordered to pay more than $219,000 in restitution.

“Behavior such as this, from individuals putting profit over the safety of the dedicated men and women in our military, will not be tolerated,” said U.S. Attorney Kenneth L. Parker. “When we find individuals supplying fraudulent items to the U.S. military, we will address these illegal acts as the serious crimes they are.”

U. S. Attorney Parker and Special Agent in Charge Hegarty were joined by the Defense Finance and Accounting Service and Special Agent in Charge with the Internal Revenue Service Criminal Investigation, Bryant Jackson in announcing the sentences imposed on Tuesday by U. S. District Judge Sarah D. Morrison.

Article Topic Follows: Santa Barbara - South County
crime and convictions
money laundering
Parts Source International Inc.
Santa Barbara
U. S. Attorney's Office for the Southern District of Ohio
U. S. Department of Defense
U. S. District Court
wire fraud

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