Ex-Boeing Procurement Officer Charged in Bid-Bribe Scheme

Oct. 18 (Bloomberg) -- 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 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. Attorney Richard Callahan in St. Louis said in a statement.

The grand jury indicted former Boeing executive Deon Anderson, Jeffrey Lavelle, who owned Everett, Washington-based 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, non-public 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.

Mail Fraud

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, California-based 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 plea of not guilty today 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 formation Diaz’s arraignment today. 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 on Oct. 2 and sealed that day.

The case is U.S. v. Anderson, 13-cr-00403, U.S. District Court, Eastern District of Missouri (St. Louis).

To contact the reporter on this story: Andrew Harris in the Chicago federal courthouse at

aharris16@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net