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After Kevin Walek was notified by me of Joe Zou's colluding with a verified Chinese counterfeiting supplier, Mr. Walek took it very seriously. He and VP of Moog Aircraft quality Jesse Mangual sent a confidential email to all China supply chain team including Joe Zou and me ordering Ms. Starzak, the quality lead to conduct a three week investigation on NHJ. In the email, Moog higher management requested the investigation be kept confidential.
Email by Kevin Walek to China Supply Chain Team
Kevin Walek and Jesse Mangual Ordered Ms Starzak Do a Three Week Investigation
Kevin Requested It Be Kept Confidential
But the confidential Moog investigation was blown to NHJ owner Mr. Li Jian by the very suspect Joe Zou right away.
Charles Shi Alerting Kevin Walek of Joe's Colluding with NHJ
Mr. XXX Alerting Kevin Walek of Joe's Colluding with NHJ
So, Joe Zou, the criminal suspect figured out who was the whistleblower and this was a grim message that my life and the life of others who joined me in reporting the extraordinary aircraft safety threat was compromised.
On the other hand, Ms Starzak mishandled the investigation due to her reckless, erratic and incompetent way of carrying out Moog jobs. She even refused to investigate NHJ own admitted forgery of traveler that could simply lead to the finding of NHJ falsification of raw material certification and use of fake material for SPOF of Boeing 737 spoilers.
On 20/08/2015 I shared with Kevin Walek an outside witness testimony that NHJ was counterfeiting for B/E Aerospace. The information was believed to have been passed on to Moog quality and Ms Starzak. It went to deaf's ear.
Approved Raw Material Vendor's Testimony on NHJ Counterfeiting B/E Aerospace Business
I complained on mishandling of investigation by Ms. Starzak to her direct boss, Subu Bhat who was the Moog Aircraft director of quality for Commercial business. But Moog quality organization was not responding...
Ms. Starzak went too far by re-approving the verified counterfeiting NHJ into Moog Approved supplier base again simply because Moog did not want to stop Boeing deliveries....
Ms. Starzak Declaration Under Oath Re-Approving Counterfeiting Supplier into Moog Supplier Base
This was undeniable proof Ms. Starzak was erratic, reckless and incompetent in her job which entire Moog Aircraft relied on to handle an extraordinary aircraft safety threat looming in today.
Ms. Starzak Statement "We Need to Exit from Their (NHJ) Business" 25/08/2015
In the meantime, Moog Aircraft US headquarter HR determined Joe Zou was in violation of Moog ethics.
Moog HR Determining Joe Zou Violating Moog Ethics
Even with this determination, Moog top management decided to have Joe Zou, the suspect, remain and business as usual creating an irreversible mess to US aviation system that was now fast becoming a nightmare to all stakeholders today.
I realized by that time there was a corporate cover-up going on. So I continued my own confidential investigation. I met two key outside witness in the beginning of 2016.
Witness Testimony 1-Transcript Admitted by US Law Judge
Approved Raw Material Vendor Testifying NHJ Faking B/E Aerospace Business-Transcript Admitted by US Law Judge
Witness Testimony 2 - Former NHJ Employee Saw Fake Raw Material Vendor Chops at NHJ That Were Used to Falsify Material Certifications - Transcript Admitted by US Law Judge
Former NHJ Employee Saw Not Just One but a Few Fake Raw Material Vendor Chops Used to Falsify Material Certification - Transcript Admitted by US Law Judge
With these two extremely alarming findings, I whistleblew to Moog CEO John Scannell and President of Moog Aircraft Mark Trabert on 12/01/2016.
Sender： "Shi, Charles" <[email protected]>
Time： 2016-1-12 7:14am
To：John Scannell, Mark Trabert
Subject： Bad NHJ parts may have been mounted on Boeing or Airbus commercial aircraft- TOP URGENT
Since what I am writing below is concerning fatally serious risks we might have encountered in China where one supplier NHJ may intentionally used cheap substituted RM in manufacturing Moog parts, the stake is too high for me not to report to you directly.
In Aug 2015, I reported to Moog AG(Aircraft Group) supplier chain management concerning bad supplier development practice let by Joe Zou on Suzhou New Hongji(NHJ) that lead to AG supplier chain decision to exit from this machining supplier. At that time, we were not aware NHJ may intentionally have had used large quantities of substitute material for its previous aerospace customer BE aerospace, and probably now for Moog. I had lately two findings:
1. I met SSS one week ago who is general manager of a local RM vendor BE and Moog is using now. He told me BE aerospace contacted him a few times (at least one time in email)when NHJ was a BE machining supplier, verifying if certain quantities of material with certs and POs generated by Simon’s company. SSS checked and confirmed those material in question was not provided by them and the docs were not theirs. Per RM sss’s statement, NHJ used a trick of buying 100kg RM and provides at least 200kg parts, sometimes even 300kg or even more parts. For those extras, they have to use forged docs.
2. I met another BE existing supplier recently, zzz from ssso Ltd. Together with Mr BBB who used to work in NHJ as a sale’s manager but now an employee of ssso. While Mr BBB was working in NHJ, he saw with his naked eye a few(not just ONE) FAKE RM vendor company stamps in NHJ that were used to forge certs and POs.
Having said above, we may have reason to believe NHJ is not innocently breaching international aerospace fundamental quality requirements, they are intentionally using cheap or fake materials to substitute high quality approved RM. This maybe an unspeakable crime at will subject to Moog/FAA and customer Boeing/Airbus grand investigation.
Below are short summary of background information regarding NHJ. (Bad NHJ parts may have been installed in commercial aircraft)
1. BE developed NHJ in 1990’s and exited completely from them in 2013. The reason is very simple, they found NHJ was using cheap substitute material repeatedly in large quantities and not stopping…
2. I visited 4 of existing BE aerospace machining suppliers in 2015, each of them told me the same story that NHJ was exited by BE because of excessively using substitute materials. To their knowledge, NHJ is the only one intentionally using substitute material for aerospace customers.
3. Joe Zou introduced NHJ to Moog in 2013, ever since he promoted so hard on NHJ and they became a Moog supplier that year and up to now, they are still shipping parts to Moog mixed with bad material daily or weekly.
4. Joe wanted so much to increase Moog volume with NHJ that he instructed to use its 2nd tier suppliers which are nowhere near aerospace quality requirements. No traceability, no knowledge of who the customer Moog is.
5. In July I and one of my SDE xxx visited 4 of the so called 2nd tier suppliers, the findings are alarming, so we reported to Joe to halt 2nd tier supplier development(see attachment 1) But Joe did something contrary requesting us to expedite NHJ 2nd tier development
6. At that point, we reported to Kevin Walek(see attachment 2), Kevin and Jesse Mangual requested a 2 week investigation(attachment 2a) led by SQE manager Claire Starzak. Her final findings were not visible to China SDE team though that led to Moog decision of exiting from NHJ.
7. However we believe Claire’s investigation is flawed at least not locating fatal issues NHJ already created in manufacturing Moog parts. She only went 3 times to NHJ during those 2 weeks each time under the accompaniment of my SDE XXX, each time staying 4-5 hours. A few facts that are just examples how investigations are not meant to.
P665A0039-02 (SPOF blocking of B737 spoiler) is probably the only part Claire checked RM traceability, (please refer to below statement by xxx and P3 of attachment 3), When XXX reminded Claire to deep dive why NHJ forged traveler, she declined doing so during her 3rd on-site investigation
xxx ’s statement: “P665A0039-02 one lot shipped total 217pcs to BAG, but can not find a traveler at the beginning, and finally came a traveler with qty of 264pcs from OP1 to last Machining OP; no scrap and no NC, New HJ said 47pcs are scrapped during OSP.
Reviewed NHJ PO system, 235pcs sent to OSP that could not match either 264pcs or 217pcs shipped to Moog. That did not make up the story.
Miss Mao Caifeng, the QE of New Hongji told me privately 1st Sept, one day before Claire and Lee conducted their 2nd audit. they MADE” the traveler during the 8/21 audit because they didn’t have an original traveler in place.”
Talking right about the same part, P665A0039-02. There were lots and batches scrapped prior to Aug.,2015 due to wrong machining ops. NHJ may have used substituted RMs since they used its 2nd tier for EDM and rough machining. There was no document showing scraps. DID Claire check or investigate on how much good material purchased from Moog approved source, taking away the scraps, did the figure add up to? I assume she did not.
Again talking right about the same part, P665A0039-02. NHJ had its 2nd tier to use EDM process do the roughing to as close as to its outside called out dimensions with NO Moog approval of the 2nd tier, when I and xxx asked to visit EDM supplier, they refused,(Attachment 5) for economic reasons, NHJ’s EDM supplier may used excessive electrical voltage and current for a quick cycle time because NADCAP approved EDM supplier asked for 40RMB/hour. NHJ source only 10RMB. Having said these, all this particular part shipped to Moog may be subject for recall and engineering evaluation.
8. Joe had been making all difficulties in the process of investigation of NHJ by instructing SDE to inform the owner of NHJ which is unethical and illegal, he was warned by Kevin Walek (attachment 4) He once told my SDE xxx that he and Mr Li was trying to find out who the whistle blower is and they already figured out. See, Joe was a part of criminal conspiracy to this end.
9. Joe has been talking with the owner of NHJ, Mr Li Jian recently for resurrection of NHJ even though Moog decided to exit from them, it is obvious it is in conflict of Moog interest.
10. CA81706 was not made in house, NHJ told us they have 4 2nd tiers making Moog parts, but no 2nd tier acknowledged this part was made by f them. DID Claire investigate and find out?
11. We have lot of other findings pending for grand investigation questioning...
I am aware of the legal responsibilities reporting above and tremendous risk for me and my family if any information is disclosed to NHJ and Joe. But I understand Joe is aware I was the whistle blower of last Aug’s reporting. He has been trying to retaliate me aiming to let me leave Moog. He is telling SDEs to keep NHJ as one of our supplier. I thus appeal:
Conduct a grand investigation within Moog or jointly with FAA/Boeing/Airbus on NHJ immediately, looking into all RM purchases and verify the data with the RM vendors. Check all traceability docs including travelers, scrap reports etc from NHJ, compare that of good material purchased. I had files including recordings of meeting, statement from my SDEs and witness could be summoned as well.
Investigate Joe formally on his possible violation for code of conduct and unethical behavior at Moog.
Please try best to keep me and my family safe during the investigation.
Don’t let me leave Moog while investigation is not completed.
Looking forward to an overnight feedback from you. Thank you very much.
Charles Shi | Far East Asia Supply Chain Manager, Aircraft Group
direct +86-21- xxx 2 North Suite 103 #2966 Jinke Rd.,
fax +86xxx Pudong,Shanghai,201203,China
e-mail [email protected]
2nd Internal Whistleblowing to CEO of Moog Inc and President of Moog Aircraft
Despite my sincere appeal to Moog CEO and President of Aircraft Group, my job was terminated two days later because of the determined and deplorable Moog cover-up by the top management.
Realizing Moog as a company was determined to cover up an extraordinary aircraft safety threat, I whistle-blew to FAA safety hotline on the same day Moog wrongfully terminated my job.
When alerting FAA of the matter, I copied Moog CEO, AG president and VP of Supply Chain Kate Schaefer who flew all the way from East Aurora, New York to have me terminated. The next day after I whistle-blew to FAA, I received two calls from my SDEs, saying Joe Zou was informed of my FAA whistleblowing and Zou was asked (by Kate Shaefer) to lead "Moog internal investigation" before FAA came.
Kate Schaefer, vp of Moog Aircraft Supply Chain - Informed Suspect Joe Zou of Confidential FAA Whistleblowing and Endorsed Joe Zou Colluding with NHJ Tampering and Destroying Evidence
Below transcript was admitted by US law judge into court record.
Transcript of Phone Conversation Concerning Kate Shaefer Willful and Viciously Intended Leaking FAA Whistle Blowing Information Compromising Whistle Blower's Life
Moog till this day did not send any competent quality people from US headquarter investigating the counterfeiting of NHJ, neither did Boeing or FAA. They all relied on the criminal suspect Joe Zou leading that incompetent SQE Ms. Starzak with deceitful "investigation results" to cover up the extraordinary aircraft safety threat.
Well, that is Moog felony! This is not a fiction, it is real.
All exhibits shown here and before were either released by Moog attorney's during AIR21 legal action or admitted by US law judge or from independent journalists.
To be continued... Part three will present FAA abusive investigation process and massive cover-up...stay tuned.
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