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A summary of Southern California-related business litigation developments during the past week.

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From United Press International

Defense Fraud Plea: The operators of a Burbank firm that manufactured temperature transducers for the Army’s Patriot missile pleaded guilty to charges of defrauding the government of $500,000 by padding bills for the components. Michael Martin Zarachoff, 45, and Nanci Plath, 42, both of Northridge, admitted to a federal court judge that they overcharged the government in contracts over a three-year period by establishing a shell company to falsify bills to their company, Temcom Inc. The shell company, however, never supplied any goods or services to Temcom or the government, prosecutors said. Zarachoff, Temcom’s owner, pleaded guilty to one count each of conspiracy, lying to the government and tax evasion and faces up to 15 years in prison when he is sentenced. Plath, comptroller at the firm, pleaded guilty to one conspiracy charge, for which she is expected to receive probation. (Court Case No. 90-855. Plea entered Dec. 4, 1990).

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