2 Men Plead Guilty in Kickback Scheme

Two Northridge men who were purchasing agents for aerospace companies pleaded guilty Monday to charges of tax fraud for failing to report kickbacks they received from a subcontractor, thS. attorney’s office announced.

Raymond Fisher, 67, a purchasing agent for Eaton Corp., and Frank Brown, 56, who worked for Cetec Corp. and Hamilton-Avnet, each received kickbacks from now-defunct Dunham Corp., which made components for defense and aerospace projects, the U. S. attorney’s office said in announcing the charges two weeks ago.

Fisher received $40,000 in kickbacks for directing business to Dunham in 1984 and 1985, and Brown received $10,000, Assistant U. S. Atty. William F. Fahey said. In addition, both men were charged with not reporting the income on their tax returns.

Sentencing for Fisher and Brown is scheduled for Nov. 6 and Nov. 26, respectively. Fisher faces a maximum sentence of six years in prison and a $200,000 fine, while Brown faces a maximum prison term of five years and a fine of up to $100,000, Fahey said.

The schemes were two of the largest uncovered thus far by DEFCON, the Defense Contractor Task Force, created to eliminate kickbacks in Southern California’s defense industry, Fahey said.