Melvyn Paisley, 77; Navy Aide Caught in Procurement Scandal

Melvyn R. Paisley, a former assistant secretary of the Navy who was a central target in a major defense procurement scandal in the 1980s, has died. He was 77.

Paisley, a resident of McLean, Va., died of cancer Dec. 19, his wife, Vicki, told the Associated Press. He had been fighting the disease since the early 1980s.

Paisley was the highest-level target of the Operation Ill-Wind defense procurement investigation, a 7 1/2-year probe that focused on corruption in military procurement including bid-rigging and bribe-payment. More than 50 individuals and businesses were eventually convicted of trading in confidential Pentagon information.

After pleading guilty to conspiracy and bribery, Paisley was sentenced to four years in prison. He admitted that he agreed to take kickbacks from three defense firms in return for helping them win manufacturing contracts.

Within 15 months of his resignation in 1987, Paisley was paid nearly $500,000 by defense contractors for providing secret information he had obtained while working for the Navy, according to court papers.

His actions tainted the procurement of several key Navy projects, including the Aegis weapons system for surface ships, the F-404 engine for fighter jets and the Pioneer remotely piloted vehicle for artillery targeting.

The roster of companies that pleaded guilty in the investigation and paid fines includes United Technologies Corp., Loral Corp., LTV Aerospace & Defense Co., and Grumman Corp. Courts imposed more than $250 million in fines and civil penalties on corporations or individual defendants.

Paisley, a native of Portland, Ore., was a fighter ace credited with shooting down several enemy aircraft during World War II, his wife said. Among his medals were the Distinguished Flying Cross and the Silver Star.

Paisley worked at Boeing Co. for 28 years before he was appointed by President Reagan to the Navy post in 1981.

More recently, he was the primary consultant and historical archivist for the two-hour documentary “Shooting War,” a story of World War II combat cameramen that aired on ABC, Vicki Paisley said.

Besides his wife, Paisley is survived by four children and two grandchildren.