Inspector with SpaceX ex-supplier accused of falsifying reports, jeopardizing space missions

BREVARD COUNTY, Fla. — SpaceX has launched government satellites, cargo filled spacecrafts and even a car from the Space Coast.

Records now show some of those missions may have been jeopardized by an inspector who, investigators said, either lied about inspections or didn't even do them.

The FBI called his alleged crime "potentially catastrophic" to the space program.

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This involves about 10 space flight missions between NASA, the U.S. Air Force and National Oceanic and Atmospheric Administration that ended up with wrongly approved parts purchased by SpaceX from a supplier.

Federal agents said the alleged fraud could have cost millions and jeopardized years of work.

As SpaceX works to find what caused its first flight-proven Crew Dragon spacecraft to explode during a test in April, NASA promises a timely answer and transparency.

“I would tell you that the communication on this particular incident was poor. And next time, it will not go that way,” said NASA Administrator Jim Bridenstine. “I'll be very clear about that.”

The aerospace industry is also recovering from the allegation that a quality assurance engineer for a SpaceX supplier had been falsifying inspection reports for parts that made it onto 10 flights, with a harrowing potential to jeopardize even more.

Records show this includes at least 38 inspections for parts for the Falcon 9 and Falcon Heavy rockets.

Agents found at least 76 individual pieces that had been rejected during source inspection, or were never inspected, were still shipped to SpaceX from Smalley's New York based employer.

According to the federal complaint, when asked by his supervisor why he did it, he said he wanted to ship more product for the company.

This averaged $200,000 a month from business with SpaceX.

Smalley's employer is no longer in business after being fired by SpaceX.

If convicted, Smalley faces the possibility of 10 years in prison and a $250,000 fine.

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Cox Media Group