Feds: Penn Yan man forged inspection reports for products used by SpaceX

Rochester, N.Y. – A Penn Yan man is facing federal charges after federal prosecutors said he forged inspections on space equipment.

His actions, they say, led to the closure of a Rochester business.

Prosecutors say James Smalley of Penn Yan was employed at PMI Industries in Rochester since March 2017 as a quality assurance engineer. PMI was an aerospace precision machining service that specialized in high-tolerance machining for aerospace parts.

These parts were used in spacecrafts built by SpaceX.

Prosecutors say an independent firm that was contracted to perform quality control assurance for SpaceX found multiple source inspection reports and certifications from PMI had been falsified. They reportedly impacted critical parts used on the Falcon spacecraft.

Additionally, it was determined that 76 individual parts that were never rejected during inspection were still shipped to SpaceX.

Prosecutors say 10 space missions were affected because of parts from PMI, including seven NASA flights, and two U.S. Air Force Missions.

Court papers allege Smalley admitted to forging signatures in order to ship more product. Investigators say he did so under his own direction.

SpaceX went on to terminate its work with PMI. The company, which averaged about $200,000 through its contract with SpaceX, was forced to close – causing 35 people to lose their jobs.

Prosecutors allege Smalley falsified 38 source inspection reports for space vehicles that were obtained by SpaceX for its Falcon spacecrafts.

Smalley is charged with fraud involving space vehicle parts.

“I note that the success of America’s reinvigorated space program depends not just on American ingenuity but also American integrity,” said U.S. Attorney James Kennedy.

“Such fraudulent conduct,” he added, “jeopardizes not only the success of the program but the lives of the brave men and women who rely on the integrity of not just the space vehicles themselves, but all those who build and design them.”

If convicted, Smalley could face a maximum sentence of 10 years in prison and a fine of $250,000.