Defense Contract Bids Prompt Indictment

A Rancho Bernardo businessman whose virtually dormant firm bid on more than 50 government defense contracts, was indicted Friday by a federal grand jury and charged with three felony counts of making false statements to a government agency and on a bank loan application.

The indictment alleges that Dove Electronics owner Aldwyth Roach lied to the Department of Defense in an attempt to secure between 50 and 60 contracts for electronic components.

If convicted, Roach could face up to 12 years in federal prison.

A bench warrant was issued for Roach’s arrest, but the order was stayed because he probably will turn himself in next week, Assistant U.S. Atty. George D. Hardy said.

Rancho Bernardo-based Dove Electronics was the low bidder on at least 10 contracts, but when government auditors conducted a “pre-award” survey for quality assurance and financial performance, Roach’s firm “flunked it terribly,” Hardy said.

False Statements Alleged

During the survey, Roach allegedly gave the government false financial statements, including one that listed Dove Electronics’ total assets as $201,500 and income of $125,000 for the year ended Aug. 15, 1985.

Dove Electronics, however, had “negligible assets” and no income at all during that period, according to the indictment.

Roach was also indicted for allegedly making false statements on a credit application last November to Lloyd’s Bank of California in San Marino. On the application, Roach claimed he had assets of $279,000 and an annual income of $54,000.

However, the indictment alleges that he had negligible annual income and his only asset was a 1976 Toyota.

Roach, whose firm was incorporated in November, 1984, could not be reached for comment Friday.