#Fraud

While most of our readers are familiar with the various online supergiants, ADS, Inc. is one of the largest gear contracting companies in the country – they just focus on servicing government customers. As one of the four primary contractors in the Defense Logistics Agency Tailored Logistics Support Program (commonly known by its acronym, “TLS”), they are one of the premier suppliers to the DoD of COTS and near-COTS equipment.

According to the Phoenix New Times, Matt Burkett has been arrested for fraud related to his Scottsdale, AZ firearms manufacturing business, Predator Tactical.

REV Arms, also called Revolution Arms, noted for “selling” (more on the quotes in a second…) sub-MOA guarantee AR-15s is highly likely to be no more. While formal bankruptcy papers have not been filed, the company has gone eerily silent. Numerous customers are reporting lack of delivery of product to the local BBB.

Reports are surfacing of a possible data breach at the magazine clearing house GunMag Warehouse. Reddit Users who purchased the 6 pack of Hexmags deal are reporting that they were receiving calls from their credit card fraud departments as well as seeing transactions anywhere from 28 cents all the way up to the thousands of dollars. With data breaches becoming more commonplace the theft of payment data wouldn’t be a stretch given the recent data breach at AIM as well as a multitude of brick and mortar retailers.

In the wake of the shifting zero scandal, EOTech has released an email asking law enforcement customers to acknowledge the point-of-impact shift issue before the company will ship out new sights. EOTech holographic optics were the subject of a recent USSOCOM warning, advising against using the sights. The notice is replicated below:

Well that escalated! Hot on the heels of the U.S. Government suing EOTech for the alleged fraud in their sights, specifically in claiming that their sights could work in certain cold weather and humid environments, then trying to cover up this error in an upgrade, the parent company of EOTech, L-3 Communications, based out of New York has agreed to a payout of $25.6 million to the Government. We literally just reported on the lawsuit going through the the courts, and then this agreement has come up. It could be the end of the matter, or this could drag on with both sides negotiating some more. Along with the FBI’s HRT team switching over to Aimpoint sights, things don’t seem to be looking hot for EOTech right now on the federal government front. If you’re interested in reading the full court reading of the case, Soldier Systems has a good write up of the legal discussions.

L3 Communications, the holding company that owns EOTech, is being sued by the United States Government for fraud. Their products were the subject of a recent SOCOM warning that the EOTech holographic sights experienced shifting zero across different temperature ranges, which was also a factor in  Elite Defense, the international distributor for the sights, cutting ties with L3. SoldierSystems.net has more information on the lawsuit: