The U.S. Attorney's Office in Utah has announced the settlement of a federal civil action that alleged a military contractor sold defective aircraft parts to the Air Force.

In the settlement, Huntington Valley Industries of Huntington Beach, Calif., and Bayjet, Inc., of Las Cruces, N.M., agreed to pay the federal government $45,469.65 for damages and penalties associated with faulty aircraft seals, according to a press release. Huntington Valley Industries' original contract for the aircraft seals was valued at $9,656.55.

Both companies deny any wrongdoing in the case, the U.S. Attorney's Office said.

An investigation conducted by the Air Force Office of Special Investigations at Hill Air Force Base determined Huntington and Bayjet substituted an outdated seal used in the nose wheel of an A-10 Thunderbolt II aircraft. The substituted part rendered the nose wheels unsafe and posed a safety risk for military pilots. The problem was first noted when the front wheel of an A-10 separated from the landing gear as the jet was landing, resulting in an emergency landing.

Huntington Valley President Gary Fisher told the Deseret Morning News the parts supplied to the Air Force were valid, authorized parts at the time the purchase contract transaction took place in 2003.

"They have never returned the parts to us to show us they are bad. We have requested them, but they said, 'No, they are evidence,"' Fisher said.

The settlement agreement alleges the companies violated the False Claims Act by substituting a different aircraft part than the part required by their specific contract, the U.S. Attorney's office said.

"I said, 'Send me the parts back and I'll give you your money back, but tell me what's wrong with the parts.' But I've seen no inspection reports, no nothing," Fisher said.

Neither company manufacturers the seals but rather are suppliers and resellers.

Fisher said fighting the Air Force's allegation would have cost him $125,000 in legal fees and millions of dollars in lost business with the military during civil proceedings. He said he and Bayjet made the decision to pay the settlement costs and not to fight the charges, while maintaining they did nothing wrong, simply as a matter of economics.

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E-mail: sfidel@desnews.com