OSI Systems plunges after congressman accuses unit of fraud

OSI Systems (OSIS) is tumbling after a key congressman said the company may have committed fraud by "knowingly manipulating" the results of an operational test, Bloomberg reported last night. In a November 13 letter to Transportation Security Administration head John Pistol, Republican Congressman Mike Rogers, the chairman of the House Transportation Security Subcommittee, wrote that his panel had received a tip indicating that OSI had faked a test, the news service explained. OSI's Rapsican unit could be hit with fines, prison terms and a ban on receiving government contracts in the future if the allegation is proven, Bloomberg quoted Dan Gordon, a former head of federal procurement as saying. In mid-morning trading, OSI Systems plummeted $15.47, or 20.27%, to $60.82.