Boeing subcontractor admits contract fraud

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.

More in Herald Business Journal

Snohomish County’s campaign to land the 797 takes off

Executive Dave Somers announced the formation of a task force to urge Boeing to build the plane here.

A decade after the recession, pain and fear linger

No matter how good things are now, it’s impossible to forget how the collapse affected people.

Panel: Motorcycle industry in deep trouble and needs help

They have failed to increase sales by making new riders out of women, minorities and millennials.

Costco rises as results display big-box retailer’s resiliency

Their model has worked in the face of heightened competition from online, brick-and-mortar peers.

For modern women, 98-year-old rejection letters still sting

In a stark new video, female Boeing engineers break the silence about past inopportunity.

Tax reform needs the public’s input on spending priorities

The GOP tax plan is a good idea, but the next step should give us a voice on how taxes are spent.

Commentary: GM, Boeing fight a war of words over Mars

Boeing is strongly signaling how crucial deep-space exploration is to its future.

Under cloud of ethics probes, Airbus CEO Enders to step down

He leaves in 2019 after 14 years. Meanwhile, aircraft division CEO Fabrice Bregier leaves in February.

$4.99 sandwich promotion irks some Subway business owners

Management insists that “most franchisees support the promotion.”

Most Read