The Region : 10 Accused in Defense-Pact Kickbacks

Ten employees of three major aerospace companies were charged Wednesday with taking kickbacks on more than $1 million worth of contracts in what U.S. Atty. Robert Bonner said was “just the tip of the iceberg” in widespread bribery in Southern California’s defense industry. At the time the kickbacks were allegedly solicited and paid, eight of the defendants worked for Hughes Aircraft Co. in El Segundo, one was a vice president of Teledyne Camera Systems in Arcadia and another was employed by Northrop Corp. in Pico Rivera. The contracts involved parts ordered from subcontractors by defense contractors manufacturing sophisticated military aircraft and weapons systems, Bonner said. He said the kickback cases announced at a press conference were the result of “an extensive and intensive FBI investigation” that is continuing. The 10 people charged had jobs that allowed them to assist suppliers in obtaining subcontracts to provide machine parts on Department of Defense prime contracts, according to Asst. U.S. Atty. Fred Heather, who is prosecuting the case. Bribes “totaling in the vicinity of $100,000” were paid to these individuals, “mostly in cash,” Bonner told reporters.