California Subcontractor Pleads Guilty to Fraud Involving Boeing Contracts
ST. LOUIS, MO—William Boozer, a Boeing subcontractor, pled guilty to wire fraud in connection with a bribery/kickback scheme involving Boeing military aircraft parts during November 2009 through February 2013.
Globe Dynamics International Inc., Santa Ana, California, is a leader in producing small to large, close tolerance precision machined parts and the assembly of complex components. Globe Dynamics was a subcontractor to Boeing on numerous United States government contracts. William Boozer, owner and operator of Globe Dynamics, directed the day-to-day operations of the company, including the submission of contract bids.
According to Boozer’s plea agreement, between November 2009 and February 2013, Boozer requested the procurement officer for Boeing, Deon Anderson, provide him with non-public competitor bid information and historical price information in connection with Boeing military aircraft part purchase order requests for quotes. They communicated by telephone and e-mail between California and St. Louis in code on a regular basis, Boozer frequently requesting “Isle 5,” a coded reference to a “price check on aisle 5,” understood by Anderson to be a request for historical price information and competitor bid information. Anderson gave the information to Boozer to be used in preparing and submitting bids on behalf of Globe Dynamics in response to approximately sixteen different Boeing requests for quotes relative to those various purchase orders, in exchange for cash payments. Of the 16 bids Globe Dynamics was awarded, seven purchase orders to supply United States military aircraft parts to Boeing totaling in excess of $1,500,000. The net benefit to Globe Dynamics on those seven purchase orders was approximately $116,339.
Boozer, 59, Hacienda Heights, California, pled guilty to one felony count of wire fraud before United States District Judge Henry Autrey. Sentencing has been set for August 15, 2014.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The following co-defendants were indicted on related charges and are facing trial: Deon Anderson, 47, St. Louis; Jeffrey Lavelle, 52, Mukilteo, Washington; Robert Diaz, Jr., 54, Alta Loma, California.
This case was investigated by Defense Criminal Investigative Service, Federal Bureau of Investigation, NASA-Office of Inspector General, Air Force Office of Special Investigations, Navy Criminal Investigative Service, and Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. The remaining defendants are presumed to be innocent unless and until proven guilty.