Boeing subcontractor admits contract fraud

St. Louis Post-Dispatch

ST. LOUIS — A California man pleaded guilty in federal court here Friday and admitted using inside information from a Boeing employee in a bid to win contracts to produce 16 different military aircraft parts, prosecutors said.

William Boozer, 59, of Hacienda Heights, owns Globe Dynamics International, Inc., of Santa Ana, Calif., which produced precision-machined parts and assembled complex components for Boeing, prosecutors said.

From November 2009 to February 2013, Boozer got Boeing’s procurement officer, Deon Anderson, to provide inside information on historic prices and competitors’ bids, using the coded term “Isle 5,” short for “price check on aisle five,” prosecutors said.

In exchange, Anderson, 47, of St. Louis, got cash, they said.

Boozer used that information to prepare and submit bids to Boeing, eventually winning seven purchase orders to supply parts worth $1.5 million. The “net benefit” on the orders was $116,339, prosecutors said.

Boozer pleaded guilty Friday to one felony count of wire fraud, and is scheduled to be sentenced August 15.

Anderson and two other company owners, Jeffrey Lavelle, 52, of Mukilteo, and Robert Diaz, Jr., 54, of Alta Loma, Calif., were also charged. They have all pleaded not guilty but court documents show all have scheduled to change those pleas June 4.