Night-Vision Goggles Firm Newcon Accused of Fraud

Two Canadian executives have been arrested over an alleged scheme to overcharge the US Army C$11m for a night-vision goggle contract.

The two were arrested after a grand jury in San Francisco indicted them and their Toronto company, Newcon International, on wire fraud, conspiracy and money laundering charges, Canadian newspaper the National Post reports.

President and CEO Michael Beker and former vice-president Arie Prilik face up to 20 years in prison as well as fines if they are convicted of the charges.

The allegations date to 2005 and involve a C$250m contract awarded by the US Army's Tank-Automotive and Armaments Command to the International Trade Establishment in Amman, Jordan, which then awarded the night-vision goggles part of the deal to American Technologies Network (ATN).

The indictment claims Beker and Prilik offered ATN tens of thousands of dollars if it would pull out of the contract, thus opening the door for Newcon to pick up the business. Newcon is described as 'one of the fastest-growing companies in Canada' and 'one of the world's leading manufacturers of night vision and other speciality optical products'.