Minnesota has a unique case of the “incident overkill”.
A company in St Paul, Minnesota, has been hit with an unprecedented $2.5 million fine by the Minnesota Department of Revenue (MDR).
The company made a mistake in its processing of the parts for a single aircraft, a T-54 tank engine, the MDR said.
The company was the only one to have the parts in the US.
The fine, levied on July 1, is being considered as a matter of state and federal anti-fraud legislation.
The MDR is the US Department of Justice’s lead civil enforcement agency, the department’s website states.
In a statement to News24, the company’s owner said it would appeal the fine.
“We believe that we have done nothing wrong and that the state and county governments should have taken a stronger stance against this company,” the company said.
“As a result of this, we believe that our company and our business have been damaged.”
The MDR announced the fine on July 2.
The agency said in a statement it had contacted the company for information and “will continue to follow up on its actions”.
The company had told the MDP in October 2016 it was considering filing a lawsuit against the department, claiming the fine violated federal anti‐fraud law.MDR commissioner Mike Fritze said he believed the company had not taken sufficient steps to ensure that the parts had been processed correctly and the company “did not take advantage of the time and effort” it had invested in ensuring the parts were safe.
“The company has not made the proper preparations to handle and dispose of the recovered aircraft parts,” he said.
He added that the MDS had issued a $2,000 fine for each of the three previous violations.
“We don’t believe it was a case of one person, one mistake,” he told News24.
“In fact, we feel it was systemic failure.
We felt that the system is broken.”
Fritze told News12 that he was “not surprised” by the fine, but that the company was “disappointed” that the agency did not take it more seriously.
The MDS is reviewing the company and is “taking appropriate action”, Fritzer said.
The company has been fined a total of $1.4 million, the largest in state history.
The Minnesota Department the MDFRA’s lead enforcement agency.
MDFRA Commissioner Mike Fichter said the company will appeal the MDA’s decision.