Moritz Embroidery Works

Mount Pocono, PA: (Jul-10-07) The US Department of Defense and Action Embroidery Corp. brought charges against Moritz Embroidery Works, a Mount Pocono manufacturer, alleging that the company had fraudulent business practices. Moritz Embroidery was accused of having US flag emblems for military uniforms made in Thailand and saying those emblems were made in America. In 2004, Moritz Embroidery Works entered into a contract with the US government to produce between 3 million and 7.2 million US flag emblems to go on troops' uniforms. The government agreed to pay Moritz 22 cents for each emblem made. Action Embroidery Corp., the California manufacturer which lost the bid to Moritz to make the emblems, alerted the government by filing a civil claims suit against Moritz for its misconduct. As part of the settlement reached, Moritz agreed to pay $500,000, ending the civil lawsuit. [POCONO RECORD: FLAG EMBLEM FRAUD]

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Published on Jul-11-07