Boeing procurement officer, contractors indicted on bribery and fraud charges

Deon Anderson, a former Boeing procurement officer, allegedly leaked nonpublic information to bidders for contracts on military aircraft parts in exchange for cash.

A former Boeing Co. procurement officer and three other people were indicted by a federal grand jury and accused of engaging in a bribery and kickback scheme, a federal prosecutor said.

The ex-procurement officer allegedly leaked nonpublic information to bidders for contracts on military aircraft parts in exchange for cash, the office of U.S. Atty. Richard Callahan in St. Louis said in a statement.

The grand jury indicted former Boeing executive Deon Anderson; Jeffrey Lavelle, who owned Everett, Wash., bidder J.L. Manufacturing; and an outside consultant for J.L., Robert Diaz. Boeing, based in Chicago, is the world's biggest plane maker.

"Anderson provided J.L. Manufacturing, though Lavelle and Diaz, nonpublic competitor bid information and historical price information in connection with one and more Boeing military aircraft part purchase order requests for quotes" from May 2011 to April 2013, Callahan's office said, citing the indictment.

Lavelle allegedly used that information as guidance for about nine different bid requests submitted to Boeing, winning seven contracts worth an aggregate of more than $2 million, according to the U.S.

Diaz, 54, and Lavelle, 52, each face one count of mail fraud and two counts of wire fraud, according to the indictment. Anderson, 47, was charged with an additional wire fraud count, together with William Boozer, owner of Santa Ana company Globe Dynamics International Inc.

From November 2009 to February 2013, Boozer, 59, allegedly paid Anderson for information used in preparing about 16 Globe bids, winning seven contracts worth a total of more than $1.5 million.

Anderson entered a not-guilty plea Friday in an appearance before U.S. Magistrate Judge Shirley Mensah in St. Louis, his attorney, Nicholas Williams, said in a phone interview.

"Mr. Anderson maintains his innocence," his lawyer said.

Diaz is represented by the St. Louis federal public defender's office. That office didn't respond to an after-hours telephone message seeking information on Diaz's arraignment Friday. Lavelle's lawyer, John Crowley of Seattle, and Boozer defense attorney Dyke Huish of Los Angeles, didn't immediately reply to voice-mail messages seeking comment.

"Boeing has fully cooperated with law enforcement officials throughout their investigative process and we will provide our full cooperation as the case moves forward," the company said in a statement e-mailed to Bloomberg News.

Each mail and wire fraud count carries a maximum punishment of 20 years' imprisonment and a $250,000 fine. The indictment was returned Oct. 2 and sealed that day.

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ST. LOUIS (KSDK) - A former Boeing Procurement Officer and three of the company's sub-contractors have been indicted for mail and wire fraud stemming from a bribery and kickback scheme involving Boeing military aircraft parts. 

Boeing Procurement Officer Deon Anderson allegedly provided J.L. Manufacturing, a Washington-based aerospace job machine shop, non-public competitor bid information and historical price information in connection with multiple Boeing military aircraft part purchase order requests.

That information was used in bids submitted by J.L. Manufacturing to Boeing for approximately nine different Boeing parts requests - of those nine, J.L. Manufacturing was awarded seven, totaling more than $2 million.

In exchange for the information, J.L. Manufacturing's Robert Diaz and Jeffrey Lavelle made cash payments to Anderson in St. Louis and California.

In addition, the indictment states that another Boeing sub-contractor, William Boozer, the owner and operator of Globe Dynamics, asked Anderson to provide non-public competitor bid information and price information in exchange for cash payments.

The indictment alleges that Boozer frequently communicated with Anderson via phone and email, with Boozer frequently requesting "Isle 5," a coded reference to a "price check on aisle 5," which he and Anderson understood was a request for inside information.

Anderson gave Boozer information for bids on behalf of Globe Dynamics for approximately 16 different Boeing requests. Of the 16 bids, Globe Dynamics was awarded seven purchase orders to supply U.S. military aircraft parts to Boeing - totaling more than $1.5 million.

Each count of mail and wire fraud carries a maximum penalty of 20 years in prison and fines of up to $250,000.

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