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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