Defense Contractor Indicted in Crackdown
In the latest action in a government crackdown on corruption among defense contractors, a federal grand jury Thursday indicted an Encino businessman and employees from Newhall and Beverly Hills on charges of tax evasion, conspiracy and falsification of records.
Indictments were returned against Robert Butler, 54, of Encino, president of Purkey Co. of North Hollywood and Butler Industries of Valencia; John Cave, 43, of Beverly Hills, secretary-treasurer and general manager of Purkey Co., and Steven Wooten, 30, of Newhall, general manager of Butler Industries, said Assistant U.S. Atty. Ralph Hirschmann.
Both companies are major subcontractors on defense contracts in the aerospace industry.
The three men were accused of subscribing to false tax returns, aiding and assisting preparation of false tax returns and conspiring to falsify corporate books and records in order to impede the Internal Revenue Service.
Hirschmann said hundreds of thousands of dollars worth of company checks were written to fictitious persons.
The three conspired to make it appear these were for legitimate business expenses but cashed the checks themselves, avoiding taxes on the funds, he said.
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