A federal court jury has convicted four executives of a North Hollywood aircraft parts company of conspiring to defraud the government by selling bogus parts to Kelly Air Force Base.
Those convicted were Donallco Inc. President William Allred, 56, estranged husband of attorney Gloria Allred; product manager Antoine Haddad, 52; supervisor Soren Hansen, and engineering department chief Lou Milhous.
Donallco and 10 of the company’s executives and supervisors were named in the five-count federal indictment issued Jan. 30.
The four men were found guilty of using “trickery, deceit and fraud” for selling and shipping unlicensed and untested aircraft engines to Kelly, court records said.
Assistant U.S. Atty. Ray Jahn said Donallco may have misrepresented and sold such parts elsewhere in the country.
“This company is under investigation for numerous incidents, but these have been the only criminal charges so far,” Jahn said.
Charges were dropped against four of the executives, another pleaded guilty to a lesser charge and one remains a fugitive believed to have fled the country.
Consultant and former employee Emmett Shultz pleaded guilty in August to a lesser charge of knowing of a crime but failing to notify authorities.
One-time Donallco Vice President Arthur Meekings, indicted with the others, remains at large.
Allred, who was represented by famed Houston lawyer Richard (Racehorse) Haynes, was found guilty of four of the five counts against him. Haddad was convicted on all five counts, while Hansen and Milhous were found guilty of one count each.
Each faces up to five years in prison and a $250,000 fine on each count. Sentencing is scheduled for Dec. 7.