Defense Fraud Figures Admit Guilt

Two of four executives accused of selling the Defense Department used and defective parts for jets, helicopters and missiles have pleaded guilty, prosecutors said Thursday.

The 76-count indictment handed up in December against officers of South East Connecters Inc. of Miami was the first using racketeering charges in a contractor fraud case, the Defense Department said.

South East Vice President David G. Brand pleaded guilty to conspiracy to defraud the United States, and purchasing manager Fred Kamins pleaded guilty to cocaine possession, U.S. Atty. Leon Kellner said Thursday.

Both agreed to cooperate with the government, Kellner said.

Still to be tried are South East President Edward Neal Bonavia and general manager Richard Klein.

The indictment accused the four executives of supplying bad parts for Minuteman missiles, Iroquois helicopters and various airplanes, including B-52s, F-15s and F-4 Phantoms.

In several cases, faulty parts were discovered before they went into airplanes, but it is not known whether any actually were installed, said Frederick Mann, deputy chief of the major crimes section of the U.S. Attorney’s Office.

South East officers also allegedly offered cocaine and marijuana to employees and to Defense Department inspectors in an effort to block the investigation.