Manuel Caldera Pleads Guilty to Fraud
Manuel R. Caldera, a former Los Angeles defense contractor active in community affairs, pleaded guilty Monday to conspiracy to commit bribery and defraud the United States in connection with a defense contracting scandal.
The 59-year-old investment banker and founder of Amex Systems Inc. faces seven years imprisonment and $500,000 in fines.
Caldera, named Hispanic Businessman of the Year by President Reagan in 1983, became the 39th person to be convicted in connection with the two-year-old Pentagon procurement investigation known as Operation Ill Wind.
Caldera entered the plea before U.S. District Judge Claude M. Hilton in suburban Alexandria, Va.
He admitted giving thousands of dollars to two Navy engineers, Stuart E. Berlin and James D. Sampson, “in return for their assistance in obtaining and maintaining contracts with the United States Navy,” according to a government statement filed with his plea.
Assistant U.S. Atty. Joseph Aronica said Caldera bribed the engineers to obtain six contracts for his small company from 1978 to 1984. The contracts were awarded to Amex Systems under the minority enterprise program managed by the Small Business Administration, which does not require competitive bidding, Aronica said.
“The contracts had a value of approximately $40 million, with potential follow-on value of an additional $100 million between 1984 and 1988,” the prosecutor said. He added that Caldera sold Amex Systems in November, 1984, for $45 million, receiving $28 million as his share. In addition to founding the company, he was its chairman and chief executive.
After the 1984 Amex Systems sale, Caldera began operating an investment banking firm under his name in West Los Angeles. He has been a prominent contributor to Latino candidates on all political levels and received minor appointments from Presidents Gerald R. Ford and Jimmy Carter.
“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?”
Born in San Pedro, he was elected to the board of the Los Angeles Chamber of Commerce and the boards of such organizations as Whittier College, the California Economic Development Corp., Kaiser Foundation Health Plan Inc. and Kaiser Foundation Hospitals.
Caldera’s name first surfaced in the Pentagon investigation last year when Berlin, who is now serving a prison term, testified that Caldera was among several business executives who bribed him to obtain military contracts. Berlin admitted receiving dozens of bribes totaling many thousands of dollars while serving as a $68,000-a-year civil servant overseeing awarding of Navy contracts.
Berlin testified that Caldera’s payments amounted to several hundred dollars a month over a period of three years.
