Second Texas men pleads guilty in case involving faulty military parts

Date: September 1, 2023

Contact: newsroom@ci.irs.gov

Columbus, OH — Two Texas men are convicted of crimes related to providing faulty parts to the U.S. military.

Philip R. Huddleston of Ft. Worth, Texas, pleaded guilty in U.S. District Court here today.

Since 2013, Huddleston was a civilian employed as a quality assurance specialist at the Defense Contract Management Agency. Since 2018, Huddleston also co-owned WM Industries, a DoD contractor in Beaumont, Texas, who sold and supplied a variety of military parts to the DoD.

Huddleston co-owned the DoD parts business with Gregory Gotreaux of Beaumont, Texas, who is also convicted in this scheme.

According to court documents, Huddleston and Gotreaux conspired to supply the United States with unapproved and substituted parts on 41 orders totaling at least $704,000.

Specifically, from November 2019 through September 2021, Huddleston and Gotreaux provided nonconforming parts used in various U.S. military defense and weapons systems. The defendants were paid by the Defense Finance and Accounting Service (DFAS) located in Columbus.

The two men pleaded guilty to wire fraud and engaging in monetary transactions in criminally derived property.

Parties involved with Huddleston's plea agreement have recommended a sentence of 24 to 37 months in prison.

The defendants have agreed to pay $706,000 in restitution, which includes approximately $2,100 for testing costs to the Department of Defense.

Sentencing of the defendants take place at future hearings and will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI); and Patrick Hegarty, Special Agent in Charge, Defense Criminal Investigative Service (DCIS) announced the guilty pleas. Assistant United States Attorney Jessica W. Knight and Special Assistant United States Attorney J. Michael Marous are representing the United States in this case.