Former Assistant Navy Secretary Melvin Paisley, the highest-ranking official indicted in the "Ill Wind" defense procurement scandal, pleaded guilty Friday to three felony counts.
Paisley entered guilty pleas in federal court in nearby Alexandria, Va., to one count of conspiracy to defraud the government, one of taking a bribe while holding his Navy post and one count of passing sensitive procurement information to a competitor.The scandal largely involved bribes for inside information on lucrative defense contracts and so far has netted 41 people who have been convicted and five corporations that have been prosecuted. Total fines, penalties and civil recoveries have amounted to more than $40 million.
The charges against Paisley stemmed both from his government service and from his work as private defense consultant after leaving the Pentagon. He worked with former contractor William Galvin, who last year pleaded guilty to bribing Paisley, and with Charles Gardner, a retired vice president of Unisys Corp., who also pleaded guilty to bribing Paisley.
The U.S. attorney's office said Paisley influenced the Navy to designate an Israeli firm as the supplier of a ground station for an unmanned drone airplane built by other firms. The office said the firm, Mazlat, paid a total of $268,000 to a firm set up in Switzerland to accept the bribery money.
During the acquisition of the Aegis ship defense system, a Marine aircraft landing system and a fire control radar upgrade, the office said, Paisley used his position to manipulate the process in favor of the Sperry Corp., which later became Unisys. Paisley's condominium in Sun Valley, Idaho, was bought from him for $149,000, an above-market price, and later sold for $100,000.
The office said Paisley and Galvin set up a firm to get non-competitive contracts on a classified program, but Paisley's name never showed on the ownership records. In addition, he steered work to Martin Marietta Corp., the office said.
He also took data with him when he left the Navy that allowed him to help an aircraft engine manufacturer, Pratt & Whitney, to stay in the running in an engine purchase deal. He was paid about $218,000 by the parent firm, United Technologies, which hired him after he helped Pratt & Whitney.