A Costa Mesa company Wednesday pleaded guilty to a bid-rigging charge involving materials sold to the Milan Army Ammunition Plant from 1988 to 1992.
Valentec International Corp. LLC will pay $500,000 to the government as part of a settlement accepted by the U.S. Justice Department, said Richard Reed, a Justice Department attorney.
In a one-count felony charge filed in U.S. District Court in Jackson, Tenn., the government said Valentec conspired with others to "create the illusion of competition by submitting intentionally high complementary bids" to the western Tennessee plant for materials needed to make ammunition.
A Valentec company official said the charge stemmed from operations when Insilco Corp. was the parent company. Insilco sold Valentec in 1993 to New Jersey-based Safety Components International.