Teledyne Electronics, 6 People Plead Not Guilty in Fraud Case

A unit of Teledyne, three of its vice presidents, a Navy official and two defense consultants pleaded not guilty on Friday to charges filed against them in a 27-count indictment stemming from the government’s massive investigation of defense procurement fraud.

A federal judge set March 27 as the date for trial.

The government has charged that Teledyne Electronics of Newbury Park, Calif., hired William L. Parkin, a Washington-area defense consultant, to get information about a $100-million contract from the Navy and Air Force for equipment used in checking radar sets.

Parkin, according to the indictment, then paid a second consultant, Fred H. Lackner of Woodland Hills, to bribe his friend, Stuart E. Berlin, the Navy official charged in the case. Teledyne subsequently obtained the contract in part because of the confidential information Berlin passed along, prosecutors charge.

Berlin, a civilian purchasing expert for the Navy, has now been suspended without pay from his $74,304-a-year job. Teledyne Electronics has been barred from doing business with any federal agencies.

The defendants, all of whom were released on $10,000 personal recognizance bonds, proclaimed their innocence Friday. Parkin, leaving the court disguised in a beard and cap, muttered, “I’m going to be exonerated,” to reporters who caught up with him before he sprinted away to avoid questions. Berlin, when asked if he expected to be acquitted, said simply: “Sure do.”

Defense attorneys had asked U.S. District Judge Richard Williams to delay the trial until late April, saying that the government plans to use scores of wiretaps and a “warehouse of documents.” The defense has “a daunting task in front of us,” Teledyne attorney Thomas Patten told the judge.

Could Face Fines of $6.5 Million

Williams, however, rejected the request, saying that the accusations concern “garden-variety crimes.”

The company potentially faces fines up to $6.5 million if convicted of all counts in the indictment. Teledyne’s lawyers insist that the company did nothing wrong and had no knowledge of any private deals among the consultants and government employees.

Patten said Friday that he would press for a separate trial for the firm.

Another defense contractor, Hazeltine Corp., two of its former officers and a former Washington marketing official for Teledyne last week pleaded guilty to charges stemming from the same investigation.

The Hazeltine case involves charges that the company also hired consultant Parkin to get confidential information to assist it in bidding on a $15.9-million contract for electronic testing equipment used in aircraft. Hazeltine also has been suspended from bidding on government contracts.

The former Teledyne official, Michael Savaides, is expected to be a major witness in the government’s case against his former employers. He is not scheduled to be sentenced until April 28. The two former Hazeltine executives who pleaded guilty along with him are expected to be sentenced in mid-March.

In addition, further indictments are expected as the government continues to build its case from the huge 2 1/2-year “Ill Wind” investigation.