Hughes Likely to Be Indicted in Arms Testing : Defense: It may be charged today with falsifying evaluations of electronic components used in weapons systems, sources say.
Federal prosecutors will seek a criminal indictment against Hughes Aircraft today in U.S. District Court in Los Angeles, after a lengthy investigation into allegations that the firm falsified tests of critical electronic components used in a variety of weapons systems, it was learned Wednesday.
In addition to charges against the corporation, an indictment will be sought against a Hughes official, although the person is not believed to be a high-level executive, according to knowledgeable sources.
A federal investigation of the Los Angeles-based defense firm was initiated after employees made allegations to Defense Department investigators that Hughes was improperly testing so-called hybrid circuits, which were used in a variety of the firm’s weapons systems, the sources said.
After the federal criminal probe began, the workers also filed a civil suit under the Federal False Claims Act, which allows individuals to sue a contractor on behalf of the government and share in any awards. The suit is believed to be sealed in federal court. It is unknown whether the Justice Department has elected to join in the prosecution of that case.
Hybrid circuits are custom-designed devices used in weapons systems ranging from missiles to jet fighter cockpits. They contain both integrated circuits and other components, all densely packed inside a sealed metal container about the size of a matchbox.
It is not the first time that Hughes has faced federal criminal charges. In March, 1990, the firm pleaded guilty to illegal trafficking in secret Pentagon documents as part of the sweeping Ill Wind investigation and agreed to pay $3.7 million in fines and costs.
A number of Hughes officials have also been indicted in recent years, including former executive Paul Visher. A Washington grand jury handed down charges against him last September.
That case alleges that Visher participated in a conspiracy to funnel $300,000 in illegal payments to an official of a satellite consortium to obtain goodwill. It was not alleged that Visher personally benefited from the payments.
