DETROIT (AP) – Two Detroit-area brothers will be confined to their homes for three months in a fraud case that involved cutting corners in the making of auto parts.
David and Orman Bernhardt own Davalor Mold in Macomb County’s Chesterfield Township. They were accused of using less expensive materials than required in seat-belt assemblies and then covering it up through false reports.
They were sentenced Friday in federal court in Detroit, four months after pleading guilty to fraud. An investigation revealed no threat to vehicle safety.
The government wanted some type of confinement. Assistant U.S. Attorney Sheldon Light says there must be a penalty that deters others from committing corporate fraud.
The FBI got a tip in 2009 and conducted an undercover investigation that included secretly recorded conversations.
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