Ex-Honda Executive Testifies Boss Took Bribes

Stanley James Cardiges, a former top executive of American Honda Motor Co., said Thursday that his boss ignored company policy and awarded auto dealerships to people who showered him with Rolex watches and other extravagant gifts.

Testifying in federal court for a second day, the Laguna Hills resident described top American Honda officials as largely unaccountable to Japanese senior management in the mid- to late-1980s and said that his former boss, John Billmyer, expressed disdain for the foreign-born executives.

“He said that he hated the Japanese,” said Cardiges, 49, as he testified against Billmyer, 65, a former senior vice president and member of the board of directors of American Honda.

Cardiges is the government’s key witness at the trial of Billmyer and a former colleague, Dennis Josleyn, 48, of Penn Valley, Calif.

Cardiges last month became the 20th person to plead guilty to racketeering and other charges in connection with one of the biggest bribery schemes in the American auto industry. He faces a maximum of 35 years in prison.

Prosecutors have charged that between 1979 and 1992, Cardiges and the other former American Honda executives took more than $15 million in cash and gifts for granting dealerships for Honda cars, including Acuras. Prospective dealers were willing to pay since the dealerships were a quick way to get rich.

Cardiges told the jury that he regularly followed Billmyer’s lead, accepting bribes of cash, Rolex watches, swimming pools and, on one occasion, financing for a home from dealers eager to obtain franchises.

Under prosecution questioning, Cardiges said company policy was ignored and dealerships were awarded based on the kickbacks. Company policy dictated that the best possible dealers should be sought, he said.

Cardiges said Billmyer feared that supervisors at American Honda or its parent, Honda Motor Co. Ltd. of Japan, would discover the kickbacks and took steps to cover up their dealings, advising Cardiges which dealers he could trust.

Cardiges will take the witness stand again today. The trial is expected to last another month.