Information Notice No. 90-46: Criminal Prosecution of Wrongdoing Committed by Suppliers of Molded-Case Circuit Breakers and Related Components
UNITED STATES
NUCLEAR REGULATORY COMMISSION
OFFICE OF NUCLEAR REACTOR REGULATION
WASHINGTON, D.C. 20555
July 16, 1990
Information Notice No. 90-46: CRIMINAL PROSECUTION OF WRONGDOING
COMMITTED BY SUPPLIERS OF MOLDED-CASE
CIRCUIT BREAKERS AND RELATED COMPONENTS
Addressees:
All holders of operating licenses or construction permits for nuclear power
reactors.
Purpose:
This information notice is intended to inform addressees of the final
disposition of a case of wrongdoing that the NRC referred to the U.S.
Department of Justice (DOJ) for prosecution, and to remind addressees and
their suppliers, as well as their individual employees, that they can be
subject to criminal prosecution and penalties if they intentionally violate
NRC regulatory requirements or Federal criminal laws. It is expected that
recipients will review the information for applicability to their facilities
and consider actions, as appropriate, to avoid similar problems. However,
suggestions contained in this information notice do not constitute NRC
requirements; therefore, no specific action or written response is required.
Description of Circumstances:
In February 1985, Bechtel Power Corporation, acting as an agent for Arizona
Public Service (APS), purchased 10 commercial-grade molded-case switches
from California Breakers, Inc. (CBI) of North Hollywood, California. The
commercial-grade molded-case switches were dedicated for safety-related
service and installed in a Class 1E 125 VDC distribution system at the Palo
Verde Nuclear Generating Station. CBI furnished a certificate of compliance
asserting that the switches met the manufacturer's specifications when the
switches did not meet them.
In March 1988, Anti-Theft Systems (ATS) of Burbank, California, sold 30
reconditioned molded-case circuit breakers (MCCBs), misrepresented as new,
to a San Luis Obispo, California, distributor. This distributor sold the
circuit breakers as commercial-grade equipment for use in nonsafety-related
systems at the Diablo Canyon Nuclear Power Plant.
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IN 90-46
July 16, 1990
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The circumstances related to these procurements were investigated by the NRC
and the findings were referred to the U.S. Department of Justice. On
February 14, 1990, Mr. Carlos Trevino of Rancho Santa Fe, California, and
Mr. Isidro Trevino of Granada Hills, California, who jointly owned CBI and
ATS, each pleaded guilty to two counts of directing their corporations to
use counterfeit circuit breaker labels for companies such as General
Electric Company and Square D to deceive the buyer of those circuit breakers
and switches. On April 30, 1990, Mr. Carlos Trevino and Mr. Isidro Trevino
were sentenced in U.S. District Court to fines and restitution in excess of
$1.3 million, three years of probation, and 100 hours of community service.
Discussion:
All personnel involved in NRC-regulated activities (including suppliers and
vendors) have a responsibility to comply with applicable NRC regulatory
requirements and Federal law. The NRC expects and demands compliance and
will seek criminal prosecution of wrongdoing in cases of intentional or
willful violations of these requirements. As evidenced by the cases
described in this information notice, criminal sanctions may include a fine
and/or imprisonment.
Addressees may wish to distribute copies of this information notice to their
employees and suppliers.
This information notice requires no specific action or written response. If
you have any questions about the information in this notice, please contact
the technical contact listed below or the appropriate NRR project manager.
Charles E. Rossi, Director
Division of Operational Events Assessment
Office of Nuclear Reactor Regulation
Technical Contact: Uldis Potapovs, NRR
(301) 492-0959
Attachment: List of Recently Issued NRC Information Notices
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