Former metallurgist gets 30-month prison sentence for falsifying results of steel testing on parts for US Navy submarines

The former Director of Metallurgy at US-based defence contractor Bradken has been sentenced in US District Court in Tacoma to 30 months in prison, and made to pay a US$50,000 fine, for falsifying test results that measure the strength and toughness of steel that her company sold for installation in the US Navy’s submarines.

Elaine Thomas, 67, of Auburn, Washington, pleaded guilty on November 8, 2021, to major fraud against the United States.

At Thomas’ sentencing hearing on Monday, February 14, US District Judge Benjamin H. Settle said it was, “a crime of pride and ego, that in some way she knew better than those who set the standards.”

“For 32 years, Elaine Thomas betrayed the trust of the United States Navy, knowingly placing its sailors and military operations at risk,” said US Attorney Nick Brown. “She falsely stated that steel Bradken produced met critical specifications – standards developed to keep military personnel safe – and allowed inferior steel to go to navy subs in half the orders she reviewed.”

According to records filed in the case, Bradken is the US Navy’s leading supplier of high-yield steel castings for naval submarines. Bradken’s Tacoma foundry produces castings that prime contractors use to fabricate submarine hulls.

The navy requires that the steel meets certain standards for strength and toughness to ensure that it does not fail under certain circumstances, such as a collision.

For 30 years, the Tacoma foundry (which was previously known as Atlas, and acquired by Bradken in 2008), produced castings, many of which had failed lab tests and did not meet the navy’s standards.

Thomas, as Director of Metallurgy, falsified test results to hide the fact that the steel had failed the tests, the US Department of Justice said in a related statement.

Thomas falsified results for over 240 productions of steel, which represents about half the castings Bradken produced for the navy.

Court filings indicate there is no evidence that Bradken’s management was aware of the fraud until May 2017. At that time, a lab employee discovered that test cards had been altered and that other discrepancies existed in Bradken’s records.

In April 2020, Bradken entered into a deferred prosecution agreement, accepting responsibility for the offense and agreeing to take remedial measures.

Bradken also entered into a civil settlement, paying US$10,896,924 to resolve allegations that the foundry produced and sold substandard steel components for installation on US Navy submarines.

The navy has taken extensive steps to ensure the safe operation of 30 affected submarines. Those measures will result in increased costs and maintenance as some of the substandard parts are monitored.

The navy says that to date, it has spent nearly US$14 million including 50,000 hours of engineering work to assess the parts and risk to the submarines.