Saturday, February 19, 2005

Former Boeing CFO Sentenced

Former Boeing CFO Michael Sears was sentenced to four months in prison and fined $250,000.  (See Jurist )  The case involved "improper job talks" with another individual who was "a former senior Air Force procurement official, while she still had sway over contracts involving the company." GOVEX.com reports:

"Druyun admitted in federal court last month to favoring Boeing in at least four contract negotiations, including the tanker deal. She said she felt indebted to the company for giving her daughter, her son-in-law and herself jobs. Druyun was sentenced to nine months in prison."

The Wall Street Journal also reports on this case. Taxpayers for Common Sense has a press release on this case that states:

The sentencing of Michael Sears sends a clear message that fleeing the federal government doesn't pay.  The four month jail sentence will act as  a wake-up a wake-up call and strong deterrent for any contractor who thinking they can get away with ripping off taxpayers.

Defense procurement was a top white collar crime priority in the 90s.  This case emphasizes that it still remains a concern.

(esp)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/02/former_boeing_c.html

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