Judge Unseals Document Listing Northrop Probes
When Northrop pleaded guilty in February to 34 counts of defense fraud and paid a $17-million fine, at least one question was left unanswered: What investigations against Northrop were dropped as part of its plea agreement with federal prosecutors?
On Monday, those investigations became public.
U.S. Circuit Judge Pamela Ann Rymer unsealed most of an exhibit listing 11 criminal investigations that were dropped against the Los Angeles aerospace company.
Lawyers for the Los Angeles Times and the Wall Street Journal had sought to make documents in the case public. The exhibit unsealed Monday, however, does leave a portion whited out--one referring to a current investigation or investigations.
Assistant U.S. Atty. William F. Fahey, lead prosecutor in the case, said Monday that “Each and every one of the investigations we chose not to go forward on criminally had been thoroughly investigated by more than 20 agents as well as several experienced federal prosecutors who spent upwards of three years looking at these cases. It was only at that point that we learned in some respects that many of the cases were beyond the statute of limitations, and many others had no evidence of criminal fraud.”
He said “a number of other cases” are pending against Northrop civilly and administratively as well as criminal probes.
Specifically, Northrop pleaded guilty to fraud in connection with the cruise missile and Harrier jet programs.
The investigations prosecutors dropped were:
* Two separate cases arising from allegations made by former Northrop employees Jeff Kroll and David Peterson in connection with the MX missile system. The government has sued Northrop over some of Peterson’s and Kroll’s charges.
* Allegations concerning mischarging in 1983 in the production of the “inertial measurement unit,” a guidance component of the MX missile. Fahey said the statute of limitations passed when the investigation began in 1988.
* Two investigations of mischarging at the Electronics Division, one involving alleged failure to properly test the “heat exchanger” of the inertial measurement unit.
* Allegations that Northrop failed to tell the government about a cost-saving new process to make parts for the FA-18 fighter. The government has filed a civil suit.
* Allegations contained in a Defense Contract Audit Agency report from Dec. 18, 1987, regarding two secret programs.
* Allegations concerning pricing misconduct in the production of a research report by the B-2 Division.
* Allegations of mischarging in the B-2 and Aircraft divisions. The last three probes were undertaken after the statute of limitations.
* Allegations arising from a “whistle blower suit” brought by six former Northrop employees in connection with the MX missile program.
* Allegations of fraud in developing a “small ICBM.” Fahey cited insufficient evidence of criminal misconduct.
