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Flintshire fraudster caused gas recall

Published date: 16 January 2012 |
Published by: Staff reporter


 

FRAUD committed by a Flintshire businessman had the potential to put lives at risk in the airline industry worldwide.

Following the actions of Eric Andrew Lyon, 47, guidelines for the production of fire extinguishers and fire suppressant systems in aircraft in Britain, Europe and in America had been changed to ensure such a thing never happened again, a court heard.

A huge investigation had taken place after it was found the halon gas he supplied was not up to standard and he had altered certificates.

More than 15,000 fire extinguishers were taken out of airplanes because the halon gas he supplied to fight aircraft fires did not meet the required specifications.
Mold Crown Court, sitting in Chester, heard the gas was no longer manufactured because of its harmful effects to the ozone layer.

It was not used in everyday fire extinguishers but because of the importance of being able to prevent catastrophes in the air it was used in airplanes under strict guidelines.

It had to be 99 per cent pure but Lyon changed analyses certificate when his samples failed to meet that high standard. Some were later found to be as low as 60 per cent.

The gas, recycled by Lyon at his company Lyontech Engineering Ltd at Flint’s Manor Industrial Estate, was used by manufacturers at home and abroad in 2007, 2008 and the start of 2009.

When the fraud was discovered it sent shock waves throughout the aircraft industry and aviation safety authorities worldwide.

Prosecutor Wyn Lloyd Jones said while Lyon had admitted a £390,000 fraud upon his customers, the seriousness of the case outweighed the high value.

“There was a substantial breach of trust in this case. Because the gas was being supplied to the airline industry there was at the very least a real risk that public safety could have been compromised,” he said.

“The motive was greed and profit.”

Lyon, of Northop Country Park near Mold, admitted 25 fraud offences and was jailed for two-and-a-half years.

Judge Niclas Parry told him: “By your activity you caused the potential withdrawal of aircraft from service both in this country, in Europe and in the United States of America.

“You caused emergency directives regarding the recall of safety equipment to be issued worldwide.

“It has subsequently transpired that the breaching of the regulations may not have had such an impact upon public safety as had initially been feared.

“That knowledge is important for the sake of future passenger confidence.
“But the reality is that at the time you were offending you could not have been certain of that and you continued to ignore the risk, regardless.”

The judge said Lyon had a niche market if not a market that was close to a monopoly because of his expertise – and he abused his position.

It was an extremely serious matter involving a systematic, sophisticated fraud for very substantial gain – achieved with total disregard for the potential of a real risk to public safety.

He was routinely altering laboratory testing certificates. “It beggers belief that a man of your experience in such a specialised activity acted in such a cavalier fashion, showing utter disregard for the potential consequences,” the judge said.

Lyon was not charged with any airline safety offences following an investigation by the Civil Aviation Authority (CAA).

It was passed to North Wales Police who carried out a fraud investigation but the Aviation Regulation Enforcement Department of the CAA had carried out a full investigation into the risk to flight safety caused by fire.

Halon was a highly effective fire suppressant widely used in the aircraft industry worldwide and it was estimated that about 15,000 fire extinguishers had to be replaced because the gas was “outside specification” which had considerable ramifications.

Following tests in America it had been found that gas with a 90 per cent purity was just as effective.

But Mr Lloyd Jones said Lyon did not know that at the time and some of the purities in the gas he supplied were far less than that. “This was worldwide, “ he said.

The probe by the CAA, the European Aircraft Safety Agency and the Federal Agency in America meant thousands were recalled and replaced by compliant products.

Paul Abraham, defending, said Lyon had considerable experience in the field and appreciated he should not have done it.

He denied it was down to greed and said Lyon was one of a few outlets worldwide dealing with the recycling of halon gas.

“He was not supplying a product that was rubbish to make money,” he said.

There was a limited availability of a product which was in high demand. He said some of the gases which came out with a low purity measurement using one testing system had come out very high using another.

Lyon was at the cutting edge of the industry and while he should not have altered the certificates he was aware from his expertise that the product was just as effective at a lower purity.

“They would still be completely effective at putting fires out,” he said. “It still did the job it was designed to do. He did not take a cavalier risk without any regard for safety.”

Mr Abrahams accepted Lyon could not have been 100 per cent certain but it was his belief based on years of knowledge and experience that he was not putting out a product that was not fit for purpose.

Lyon’s case had caused the airline industry and the safety authorities as a whole to review their systems.

 

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