L.A. Man Bribed Him, Ex-Navy Official Testifies

A former Navy official revealed Tuesday that the extent of bribery in the Pentagon procurement scandal is wider than previously believed, testifying that he accepted tens of thousands of dollars in bribes from defense consultants and contractors over the last 10 years.

Among those allegedly paying bribes were several persons not previously linked publicly to the case, including Los Angeles businessman Manuel R. Caldera, former owner of a defense contracting firm.

The disclosure by Stuart E. Berlin, testifying under immunity in the first trial in the fraud scandal, was made in a dramatic day highlighted by the playback by prosecutors of dozens of wiretapped telephone conversations between principal figures in the case.

In one 1987 exchange played for jurors, consultant Fred H. Lackner of Los Angeles warned his Washington-based associate William L. Parkin: “If the farmers in Indiana knew what you S.O.B.s were doing with their money, they’d come up here and kill you with their pitchforks.”

Admitted Taking Bribes

Berlin, a former Navy Department procurement official, has pleaded guilty to accepting about $3,000 in bribes from Lackner and Parkin in return for his assistance in directing a prized Pentagon contract to Teledyne Electronics Inc. of Newbury Park, Calif.

Lackner and Parkin also have pleaded guilty to charges in the case.

Berlin testified Tuesday for the prosecution in the trial of three Teledyne executives. The courtroom appearance provided the first public recounting of the payoffs by any of the major figures targeted in the probe.

In his testimony, Berlin described three occasions on which he accepted envelopes stuffed with cash from Lackner, then counted the money in the men’s room of his Pentagon office and stored it later in his basement safe.

But, under pointed questioning by defense attorney Mark Tuohey, Berlin admitted that he had received dozens of other bribes when serving as a $68,000-a-year civil servant overseeing the award of some Pentagon contracts during the last decade.

“You’ve been selling your country short for money for 10 years?” Tuohey demanded.

“I’ve been taking money for 10 years,” Berlin admitted in a shaky voice.

Bribes of $1,000 a Month

Berlin acknowledged that he had accepted “a few hundred dollars” a month in bribes from Caldera over a three-year period and had taken up to $1,000 a month from two other individuals over periods of up to five years.

Under the conditions of his agreement with the government, Berlin may not be prosecuted for that bribe-taking, to which he apparently confessed after pleading guilty to the crime.

“You will excuse me if my client and I feel a little ill after your testimony,” defense attorney Tuohey told Berlin. U.S. District Court Judge Richard Williams ordered the remark stricken from the record.

Assistant U.S. Atty. Joseph Aronica indicated that, in the wake of Berlin’s confession after his guilty plea, the government had made Caldera and the two other individuals, consultant William Beckmeier and Washington attorney Sheldon Matzkin, targets of the federal investigation. Neither Beckmeier nor Matzkin could be reached for comment.

The wiretapped conversations played for jurors provided insights into the interactions between major figures in the case, which focuses on fraud and corruption in the Pentagon procurement process.

The tape-recorded exchanges selected by prosecutors appeared designed to demonstrate that the Teledyne executives who are defendants in the case knew that company funds were being used to obtain confidential government information.

On trial are George H. Kaub, a vice president in charge of contracts at Teledyne Electronics; Eugene R. Sullivan, the company’s former vice president for finance; and Dale Schnittjer, the current vice president for finance.

At one point in a 1987 conversation played for the court--with lawyers, jury and judge donning headphones to listen--Parkin assured Sullivan that Teledyne could expect favorable treatment from the Pentagon on an electronics contract.

After boasting that his source is so well-connected that he knows details about the Pentagon’s classified “black budget,” Parkin told Sullivan to expect imminent action.

“My source will be in town, and he’s going to be in the right office and the right time,” Parkin said.

At another point, Parkin and Sullivan were jubilant after the Navy eliminated a chief Teledyne rival from the bidding process for the $24-million contract.

“You sure as hell aren’t going to come down (in price) very much now,” Parkin told Sullivan.

“Not now,” Sullivan agreed. “(Expletive) ‘em.”

Ultimately, after Teledyne had delayed payments to Parkin and his “consortium” of Lackner, Berlin and former Teledyne employee Michael Savaides, an angry Parkin threatened on one tape that his contacts within the Pentagon would cancel the contract unless the money was paid.

“I’ve got some irate friends who are very upset because nothing’s happening,” Parkin said. “If you don’t come through, we’ll just make sure we get you canceled next year.”

Los Angeles businessman Caldera, identified by Berlin as one of those who had paid bribes to him, was president of Amex Systems Inc. until he sold the $50-million defense contracting firm to Allied Bendix Corp. in 1984.

He now operates Caldera Co., an investment banking firm in West Los Angeles. A woman who answered the phone at the company said that Caldera was out of town and unavailable for comment.

Caldera has been a prominent contributor to Latino candidates on all political levels and received minor appointments from Presidents Gerald R. Ford and Jimmy Carter during their administrations.

“I’m one of the lucky ones,” he said in a 1983 interview with The Times. “I’m an American and a Mexican. I’m rich and honorable. Who could ask for anything more?”

Staff writer Carla Lazzareschi contributed to this story.