Elaine Marie Thomas, 67, of Auburn, Washington, was the director of metallurgy at a foundry in Tacoma that supplied steel castings used by Navy contractors Electric Boat and Newport News Shipbuilding to make submarine hulls.

From 1985 through 2017, Thomas falsified the results of strength and toughness tests for about half the steel the foundry produced for the Navy. The tests were intended to show that the steel would not fail in a collision or in certain “wartime scenarios,” the Justice Department said.

Thomas pleaded guilty to fraud last November. U.S. District Judge Benjamin Settle sentenced her in Tacoma, calling her actions a “crime of pride and ego, that in some way she knew better than those who set the standards,” according to a news release from Seattle U.S. Attorney Nick Brown.

The sentence was less than half the nearly six years sought by prosecutors.

“Our Sailors and Marines depend upon high quality products and services from our contractors to safely and effectively meet the worldwide mission of the Department of the Navy,” Navy Secretary Carlos Del Toro said. “We will continue to insist that our contractors must meet these high standards.”

There was no allegation that any submarine hulls failed. But authorities said the Navy has spent nearly $14 million, including 50,000 hours of engineering work, to assess the parts and risk to the 30 submarines affected. The Navy says it will incur further costs as it continues monitoring the subs.

Thomas’ conduct came to light in 2017, when a metallurgist being groomed to replace her noticed suspicious test results and alerted their company, Kansas City-based Bradken Inc., which acquired the foundry in 2008.

Bradken fired Thomas and initially disclosed its findings to the Navy, but the company then wrongfully suggested that the discrepancies were not the result of fraud. That hindered the Navy’s investigation into the scope of the problem as well as its efforts to remediate the risks to its sailors, prosecutors said.

In June 2020, the company agreed to pay $10.9 million in a deferred-prosecution agreement.

When confronted with the doctored results, Thomas told investigators, “Yeah, that looks bad,” the Justice Department said. She suggested that in some cases she changed the tests to passing grades because she thought it was “stupid” that the Navy required the tests to be conducted at negative-100 degrees Fahrenheit (negative-73.3 degrees Celsius).

In a letter to the court, Thomas said she was mortified at what she had done. Her attorney, John Carpenter, noted in a sentencing memorandum that she did not gain financially by faking the test results. He asked for a sentence of probation.

“Ms. Thomas is good person who let a number of work pressures cause her to make bad decisions,” he wrote. “Ms. Thomas never intended to place any sailor at risk and is gratified that the Navy’s testing compels the conclusion that she has not.”

Elaine Marie Thomas, 67, of Auburn, Washington, was the director of metallurgy at a foundry in Tacoma that supplied steel castings used by Navy contractors Electric Boat and Newport News Shipbuilding to make submarine hulls.

From 1985 through 2017, Thomas falsified the results of strength and toughness tests for at least 240 productions of steel — about half the steel the foundry produced for the Navy, according to her plea agreement, filed Monday in U.S. District Court in Tacoma. The tests were intended to show that the steel would not fail in a collision or in certain “wartime scenarios,” the Justice Department said.

There was no allegation that any submarine hulls failed, but authorities said the Navy had incurred increased costs and maintenance to ensure they remain seaworthy. The government did not disclose which subs were affected.

Thomas faces up to 10 years in prison and a $1 million fine when she is sentenced in February. However, the Justice Department said it would recommend a prison term at the low end of whatever the court determines is the standard sentencing range in her case.

In a statement filed in U.S. District Court on her behalf Monday, her attorney, John Carpenter, said Thomas “took shortcuts.”

“Ms. Thomas never intended to compromise the integrity of any material and is gratified that the government’s testing does not suggest that the structural integrity of any submarine was in fact compromised,” Carpenter wrote. “This offense is unique in that it was neither motivated by greed nor any desire for personal enrichment. She regrets that she failed to follow her moral compass – admitting to false statements is hardly how she envisioned living out her retirement years.”

Thomas’ conduct came to light in 2017, when a metallurgist being groomed to replace her noticed suspicious test results and alerted their company, Kansas City-based Bradken Inc., which acquired the foundry in 2008.

Bradken fired Thomas and initially disclosed its findings to the Navy, but then wrongfully suggested that the discrepancies were not the result of fraud. That hindered the Navy’s investigation into the scope of the problem as well as its efforts to remediate the risks to its sailors, prosecutors said.

In June 2020, the company agreed to pay $10.9 million in a deferred-prosecution agreement.

When confronted with the doctored results, Thomas told investigators, “Yeah, that looks bad,” the Justice Department said. She suggested that in some cases she changed the tests to passing grades because she thought it was “stupid” that the Navy required the tests to be conducted at negative-100 degrees Fahrenheit (negative-73.3 degrees Celsius).

The supplier, Kansas City-based Bradken Inc., paid $10.9 million as part of a deferred prosecution agreement, the Justice Department said. The company provides steel castings that Navy contractors Electric Boat and Newport News Shipbuilding use to make submarine hulls.

Bradken in 2008 acquired a foundry in Tacoma, Washington, that produced steel castings for the Navy. According to federal prosecutors, Bradken learned in 2017 that the foundry’s director of metallurgy had been falsifying the results of strength tests, indicating that the steel was strong enough to meet the Navy’s requirements when in fact it was not.

Prosecutors say the company initially disclosed its findings to the Navy but then wrongfully suggested that the discrepancies were not the result of fraud. That hindered the Navy’s investigation into the scope of the problem as well as its efforts to remediate the risks to its sailors, prosecutors said.

“Bradken placed the Navy’s sailors and its operations at risk,” Seattle U.S. Attorney Brian Moran said in a news release. “Government contractors must not tolerate fraud within their organizations, and they must be fully forthcoming with the government when they discover it.”

There is no allegation in the court documents that any submarine parts failed, but Moran said the Navy had incurred increased costs and maintenance to ensure the subs remain seaworthy. The government did not disclose which subs were affected.

The foundry’s director of metallurgy, Elaine Thomas, 66, of Auburn, Washington, was charged criminally with one count of major fraud against the United States. Thomas, who worked in various capacities at the lab for 40 years, was due to make an initial appearance in federal court June 30. Her attorney, John Carpenter, declined to comment.

The criminal complaint said investigators were able to compare internal company records with test results that Thomas certified. The analysis showed that she fabricated the results of 240 productions of steel, representing nearly half of the high-yield steel Bradken produced for Navy submarines — often toughness tests conducted at negative-100 degrees Fahrenheit, the complaint said.

When a special agent with the Department of Defense’s Criminal Investigative Service confronted her with falsified results dating back to 1990, she eventually conceded that the results were altered — “Yeah, that looks bad,” the complaint quoted her as saying. She said she may have done it because she believed it was “a stupid requirement” that the test be conducted at such a cold temperature, the complaint said.

Investigators said the fraud came to light when a metallurgist being groomed to replace Thomas upon her planned 2017 retirement noticed some suspicious results. The company said it immediately fired Thomas.

“While the company acknowledges that it failed to discover and disclose the full scope of the issue during the initial stages of the investigation, the government has recognized Bradken’s cooperation over the last eighteen months to be exceptional,” the company said in an emailed statement. “Bradken has a long history of proudly serving its clients, and this incident is not representative of our organization. We deeply regret that a trusted employee engaged in this conduct.”

Bradken agreed to take steps that include increased oversight over the lab, fraud protections and changes to the foundry’s management team. If Bradken complies with the requirements outlined in the deferred prosecution agreement, the government will dismiss the criminal fraud charge against it after three years.