Protecting People and the EnvironmentUNITED STATES NUCLEAR REGULATORY COMMISSION
SSINS No.: 5340/6835
IN 83-01, Supp. 1
UNITED STATES
NUCLEAR REGULATORY COMMISSION
OFFICE OF INSPECTION AND ENFORCEMENT
WASHINGTON, D. C. 20555
April 15, 1983
Information Notice No. 83-01, SUPPLEMENT 1: RAY MILLER, INC.
Addressees:
All holders of a nuclear power reactor operating license (OL) or
construction permit (CP), nuclear fuel cycle licensees and Category B,
Priority I material licensees.
Purpose:
This information notice is a supplement to Information Notice No. 83-01,
issued on January 26, 1983. This generic communication provides an expanded
customer list and information related to a potentially significant problem
involving fraudulent products that may have been sold to nuclear industry
companies by Ray Miller, Inc. of Charleston, West Virginia. The sale of
fraudulent materials may have been direct to nuclear industry companies, or
indirect, e.g., supplied through several tiers of subcontractors.
Planned Future Actions:
This information notice is being issued as an intermediate step. Actions
planned for the near future include issuance of an IE Bulletin to reactor or
nuclear fuel cycle licensees with an enclosed computer listing of all
purchase orders that apparently involve fraudulent substitution of
materials. At approximately the same time, NRC plans to send a letter to
each nonlicensee company that received apparently fraudulent material from
Ray Miller with specific information on the purchase order number, date, and
type of fraud apparently committed. These purchasers will be requested to
provide information to the NRC identifying any NRC reactor or nuclear fuel
cycle licensees that may have been supplied fraudulent materials.
Discussion:
On February 25, 1983, members of the NRC completed a detailed review of the
29 boxes of Ray Miller, Inc. records that are under the custody of the U.S.
Attorney's Office in Charleston, West Virginia. The results of this review
have been inputted into computer data files. The information that is
immediately available includes a more comprehensive customer list than that
provided with Information Notice No. 83-01, and a designation of those
companies that apparently received fraudulent materials. This list is
provided in Attachment 1.
8303040020
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IN No. 83-01, Supp. 1
April 15, 1983
Page 2 of 2
The attached updated customer list enumerates those customers that received
materials from the Charleston, West Virginia office during the period
1975-1979. The presence of a company's name on this list does not
necessarily mean that it received fraudulent material, only that the company
was a customer of Ray Miller, Inc. of Charleston or received materials
directly from the Charleston office. However, there is not absolute
certainty that orders were filled as specified, because notations on the
work sheets may not have been recorded in all cases. Notations were
generally written onto the work sheets when substitutions were made.
The designation of those companies that apparently received fraudulent
materials is shown by an asterisk on the customer list. A review of
notations on the work sheets indicate that substitution of material
apparently occurred for part of at least one order placed by these companies
during the period 1975-1979. Details concerning these apparently fraudulent
shipments will be provided to those companies who may have received such
shipments, as soon as further sorting and evaluation of the data file is
completed.
If you have any questions regarding this matter please contact the Regional
Administrator of the appropriate NRC Regional Office or this office.
Edward L. Jordan Director
Division of Emergency Preparedness
and Engineering Response
Office of Inspection and Enforcement
Technical Contact: Ronald M. Young, IE
(301) 49-29672
Attachments:
1. Updated Customer List
2. List of Recently Issued Information Notices
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