The massive probe into whether companies had paid Pentagon employees for inside information on contracts led Thursday to guilty pleas by a Navy procurement official and a major defense contractor, Teledyne Industries Inc.
Stuart E. Berlin pleaded guilty to conspiracy to commit bribery, receiving a bribe, wire fraud and making false statements. He faces a maximum term of 25 years in prison and $750,000 in fines when sentenced June 2. He told U.S. District Judge Claude Hylton that he had not been promised any reduced sentence in exchange for his agreement to plead guilty.Teledyne pleaded guilty to making false statements and conspiracy. It agreed to pay a total of more than $4.3 million - $1.5 million in penalties, $2.08 million in civil claims and $786,000 to reimburse the government for the cost of the investigation.
Hylton on Thursday ordered the company to make those payments, and Teledyne agreed to do so within five days.
The case involved a Teledyne division, Teledyne Electronics, based in Newbury Park, Calif.
Berlin, 51, admitted that he had received a bribe for supplying inside information on contracts. He had been a supervisory electronics engineer and branch head of the ship systems engineering section at the Space and Naval Warfare Systems Command in Arlington, Va., when the actions occurred.
Berlin was reassigned by the Pentagon to a non-procurement job in June 1988, when the two-year federal investigation, code-named "Ill Wind," became public, and he was suspended without pay in January, shortly after he was indicted.
The information in the plea agreement will be referred to the Navy for a decision on his employment status, said Lt. Bruce Cole, a Navy spokesman at the Pentagon.