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Lancaster Co. firm to pay $9.5M for obstruction

Herley Industries, of Manheim Township, Lancaster County, a supplier of radar system components to the Navy and Air Force, pleaded guilty to two counts of obstructing federal audits and agreed to pay $9.5 million in fines and civil claims to the government.

Herley Industries, of Manheim Township, Lancaster County, a supplier of radar system components to the Navy and Air Force, pleaded guilty to two counts of obstructing federal audits and agreed to pay $9.5 million in fines and civil claims to the government.

"When the government is misled into overpaying for any of its contracts, ultimately, it is the taxpayers who foot the bill. If we are to maintain integrity in the process, those who violate the rules must face consequences that deter them, and others, from such action in the future," U.S. Attorney Patrick L. Meehan said in a statement.

Lee Blatt, 80, former chairman of the firm, pleaded guilty to a criminal misdemeanor charge of failing to keep tax records required by the Internal Revenue Service, Meehan's announcement said.