An Oregon contractor pleaded guilty Friday to selling the U.S. government $10 million of faulty parts.

The parts were used for attack helicopters and military vehicles, according to The Associated Press.

"These crooks took deliberate actions to supply defective equipment to our military, putting our service men and women in harm's way during a time of war," Kenneth Hines, special agent in charge of Internal Revenue Service Criminal Investigation, said in a statement. "Then, they spun a web of complex lies to cover it all up."

The owner of Kustom Products, Inc., Harold Ray Bettencourt II, and four employees pleaded guilty Friday in U.S. District court in Portland to conspiracy to defraud the U.S.

The investigation began in 2008 when Kentucky Army National Guard mechanics found eight locknuts for a Kiowa attack helicopter that did not meet specifications.

Further investigation revealed these locknuts were being used in Kuwait, and served an important purpose on the helicopters.

In an affidavit, according to AP, James McMaken, a special agent with the Defense Department Inspector general and Defense Criminal Investigative Service, said, "The military field terminology for this locknut is the 'Jesus nut,' which is a colloquialism for the main rotor retaining nut that holds the main rotor to the mast of some helicopters. The failure of this part can be catastrophic, resulting in possible death or serious injury to military personnel."

Between 2006 and 2010, the company secured 750 contracts with the U.S. government totaling $10 million.

The company successfully sold phony parts to the government for 22 to 3,754 percent higher than their cost price, according to court documents obtained by AP.

As part of the guilty plea, the defendants have to forfeit more than $365,000 and several possessions including eight vehicles, a boat, two boat trailers, two jet skis and three ATVs (all-terrain vehicles).

Four employees of the company, which was an established seller of truck and RV parts in Coos Bay, will remain free pending a two-day sentencing scheduled for Dec. 10.

The four include Bettencourt's sons, Harold III, Nicholas and Peter, and office manager Margo Densmore.