Ex-Teledyne Executive Pleads Guilty to Falsifying Parts Tests
A former military electronics corporate executive pleaded guilty Monday to two counts of falsifying tests on parts commonly used for advanced weapons and spacecraft, including the space shuttle.
Thomas L. McDowell, who had been vice president of Teledyne Inc.’s Teledyne Relays division in suburban Hawthorne, entered his pleas before U.S. District Judge Dickran Tevrizian, who scheduled sentencing for Jan. 4.
The maximum penalty is 10 years in prison and a $500,000 fine. However, McDowell, hoping for leniency, has agreed to cooperate with the Justice Department as it pursues a separate lawsuit.
That suit will be closely watched as a gauge of how far the government will go in a case that could gravely wound a major defense contractor. It seeks $250 million from Teledyne under the federal False Claims Act--the largest amount ever in such a suit.
Those damages could be tripled if the government and the whistle-blowers who originally filed the suit prevail, said Bryan D. Daly, an assistant U.S. attorney who helped prosecute the criminal case.
Daly said no promises have been made to McDowell, who assured Tevrizian that he realized the consequences of waiving his right to a trial.
“But we have stated that any cooperation he provides will be made known to the court,” Daly said.
Federal prosecutors announced Oct. 5 that Teledyne, a diversified corporation based in Los Angeles, would plead guilty to 35 counts of preparing and submitting false statements regarding the testing of the electronic components known as relays.
Teledyne, with more than $3 billion in annual revenue, agreed to pay a $17.5-million fine but remains a defendant in the civil whistle-blower case. Sentencing for the company is scheduled for Nov. 9 before Terry Hatter, another federal judge in Los Angeles.
The relays division has been suspended from government contracting. Teledyne issued a statement calling the suspension “part of a regrettable and embarrassing situation resulting from conduct contrary to the corporation’s code of ethics.”
