Key U.S. Witness in Point Mugu Purchasing Probe Admits Fraud

A key witness in the government’s investigation of purchasing practices at Point Mugu Naval Air Station pleaded guilty in federal court Monday in connection with a fraud scheme at the base and at an oil company.

Bill M. Frazier, 45, of Camarillo, appeared before U.S. District Judge William M. Byrne in Los Angeles and admitted participating in a conspiracy to defraud the Navy base, home of the Pacific Missile Test Center, and Unocal Corp. between 1984 and 1989.

He was indicted last August along with two others.

Frazier also pleaded guilty to mail and tax fraud Monday.

According to a U.S. Attorney’s document filed Monday, Frazier solicited kickbacks from base employees, and workers sought cash and gratuities from him for doing business there.

In one instance, according to the document, a Point Mugu employee took a $1,000 bribe from Frazier in exchange for creating a false purchasing agreement with a phony business.

According to the document, Frazier submitted 158 “materially false and fraudulent” invoices to the Navy base, “demanding payment for nonexistent industrial merchandise” between October, 1986, and June, 1989.

Assistant U.S. Atty. Patricia A. Beaman, who is coordinating the Point Mugu investigation, said Frazier agreed to cooperate with the government in its fraud investigation at the base.

“We have a good case as far as fraud at Point Mugu is concerned, and we expect it will improve with Frazier’s cooperation,” Beaman said.

More people are expected to be indicted by next spring in connection with the investigation, she said.

The Navy base may have been bilked of up to $3 million, Beaman estimated.

None of the fraud allegations involve weapons or military hardware used at the base. The investigation centers on Navy orders for industrial merchandise placed by base purchasing agents and others from suppliers in Ventura County and nearby counties.