United States Nuclear Regulatory Commission - Protecting People and the Environment

Information Notice No. 83-01, Supplement 1: Ray Miller, Inc.

                                                       SSINS No.: 5340/6835 
                                                       IN 83-01, Supp. 1   

                                UNITED STATES
                        NUCLEAR REGULATORY COMMISSION
                    OFFICE OF INSPECTION AND ENFORCEMENT
                           WASHINGTON, D. C. 20555
                                     
                               April 15, 1983

Information Notice No. 83-01, SUPPLEMENT 1: RAY MILLER, INC. 

Addressees: 

All holders of a nuclear power reactor operating license (OL) or 
construction permit (CP), nuclear fuel cycle licensees and Category B, 
Priority I material licensees. 

Purpose: 

This information notice is a supplement to Information Notice No. 83-01, 
issued on January 26, 1983. This generic communication provides an expanded 
customer list and information related to a potentially significant problem 
involving fraudulent products that may have been sold to nuclear industry 
companies by Ray Miller, Inc. of Charleston, West Virginia. The sale of 
fraudulent materials may have been direct to nuclear industry companies, or 
indirect, e.g., supplied through several tiers of subcontractors. 

Planned Future Actions: 

This information notice is being issued as an intermediate step. Actions 
planned for the near future include issuance of an IE Bulletin to reactor or
nuclear fuel cycle licensees with an enclosed computer listing of all 
purchase orders that apparently involve fraudulent substitution of 
materials. At approximately the same time, NRC plans to send a letter to 
each nonlicensee company that received apparently fraudulent material from 
Ray Miller with specific information on the purchase order number, date, and 
type of fraud apparently committed. These purchasers will be requested to 
provide information to the NRC identifying any NRC reactor or nuclear fuel 
cycle licensees that may have been supplied fraudulent materials. 

Discussion: 

On February 25, 1983, members of the NRC completed a detailed review of the 
29 boxes of Ray Miller, Inc. records that are under the custody of the U.S. 
Attorney's Office in Charleston, West Virginia. The results of this review 
have been inputted into computer data files. The information that is 
immediately available includes a more comprehensive customer list than that 
provided with Information Notice No. 83-01, and a designation of those 
companies that apparently received fraudulent materials. This list is 
provided in Attachment 1. 




8303040020
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                                                     IN No. 83-01, Supp. 1 
                                                     April 15, 1983       
                                                     Page 2 of 2          

The attached updated customer list enumerates those customers that received 
materials from the Charleston, West Virginia office during the period 
1975-1979. The presence of a company's name on this list does not 
necessarily mean that it received fraudulent material, only that the company 
was a customer of Ray Miller, Inc. of Charleston or received materials 
directly from the Charleston office. However, there is not absolute 
certainty that orders were filled as specified, because notations on the 
work sheets may not have been recorded in all cases. Notations were 
generally written onto the work sheets when substitutions were made. 

The designation of those companies that apparently received fraudulent 
materials is shown by an asterisk on the customer list. A review of 
notations on the work sheets indicate that substitution of material 
apparently occurred for part of at least one order placed by these companies 
during the period 1975-1979. Details concerning these apparently fraudulent 
shipments will be provided to those companies who may have received such 
shipments, as soon as further sorting and evaluation of the data file is 
completed. 

If you have any questions regarding this matter please contact the Regional 
Administrator of the appropriate NRC Regional Office or this office. 



                                   Edward L. Jordan Director 
                                   Division of Emergency Preparedness 
                                     and Engineering Response 
                                   Office of Inspection and Enforcement 

Technical Contact:  Ronald M. Young, IE
                    (301) 49-29672

Attachments:
1.   Updated Customer List
2.   List of Recently Issued Information Notices
.
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