Ship Repair Firm, Officers Indicted
A federal grand jury on Thursday indicted a San Diego-based ship repair company and several of its officers on charges of violating federal environmental, tax and campaign contribution laws.
The 32-count indictment charges David Bain, owner and chief executive officer of Pacific Ship Repair and Fabrication Inc., and nine others with conspiracy, embezzling assets from the company’s employee profit-sharing plan, theft of a $1-million overpayment by the Navy, various income tax violations and making illegal campaign contributions to candidates for federal office.
Pacific Ship Repair and Fabrication was charged with violating the federal Clean Air Act in connection with the company’s removal of asbestos from the Navy aircraft carrier Ranger.
The investigation took 20 months and involved the U.S. attorney’s office, FBI, Naval Investigative Service, the Internal Revenue Service, the San Diego Hazardous Waste Task Force and San Diego Air Pollution Control District.
Those charged are expected to surrender to authorities within a week for arraignment, officials said.
Kendall M. Squires, the company’s attorney, said Bain, who was unavailable for comment, will resign Nov. 6 to prepare his legal defense and protect the “successful business operations of the company.” He refused further comment and said other principals of the company also would not comment on the pending litigation.
