Litton Subsidiary Pleads Guilty to Defrauding U.S.

A subsidiary of Litton Industries Inc., one of the nation’s biggest defense contractors, pleaded guilty today to defrauding the government of $6.3 million by inflating the costs of military equipment.

Litton Systems Inc., doing business as Clifton Precision, Special Devices Division, of Springfield, Pa., pleaded guilty to all 321 charges in an indictment announced July 15.

The charges included 300 counts of making false claims to the government, 20 counts of mail fraud and one count of concealing material facts from a government agency.

A plea agreement calls for $6,320,000 in restitution and a fine of $3 million. An additional civil settlement could bring the total amount of fines and restitution to $15 million, according to U.S. Atty. Edward S. G. Dennis Jr.

Judge Charles Weiner will decide Thursday whether to accept the agreement.