<i>Ex-Air Force, Boeing Aide Pleads Guilty
Tue Apr 20,12:00 PM ET Add Business - Reuters to My Yahoo!
By Andrea Shalal-Esa
ALEXANDRIA, Va. (Reuters) - A tearful former U.S. Air Force acquisitions official on Tuesday pleaded guilty to conspiracy for discussing a job with Boeing Co. (NYSE:BA - news) while still overseeing its business dealings with the Air Force.
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Darleen Druyun, 56, who retired as the Air Force's No. 2 acquisition official in November 2002 and took a job with Boeing two months later, agreed to cooperate with prosecutors, who are still investigating Michael Sears, the former Boeing chief financial officer who hired her.
"I deeply regret my actions," an emotional Druyun told Judge T.S. Ellis III in U.S. District Court for the Eastern District of Virginia.
Druyun has been under investigation for possible conflicts of interest in a $23.5 billion Air Force plan to lease and buy 100 Boeing 767s as refueling planes, a deal sharply criticized by the Pentagon (news - web sites) inspector general and other agencies.
Boeing fired Druyun and Sears on Nov. 24, saying the two violated company ethics rules by discussing a Boeing job for Druyun while she was still working on Boeing-related Air Force programs and then trying to cover it up. Boeing Chief Executive Officer Phil Condit resigned a week later.
Druyun on Tuesday admitted negotiating the Boeing job while still at the Air Force and then trying to conceal the talks.
She faces a maximum of five years in prison and a $250,000 fine and could be ordered to pay restitution.
Under the terms of the plea agreement, Druyun has agreed to provide any information she has about criminal behavior and submit to a lie-detector test.
The government agreed not to prosecute Druyun's daughter, Heather McKee -- who is still employed by Boeing -- for her role in facilitating communications between Druyun and a senior Boeing official who was not named in the plea agreement.
U.S. District Attorney Paul McNulty said the government would continue its investigation but gave no details.
Last week, the Pentagon's inspector general said the Air Force also improperly awarded Boeing a $1.32 billion contract for NATO (news - web sites) surveillance-plane upgrades that was negotiated by Druyun.
Boeing General Counsel Doug Bain said it was important that the conspiracy charge related to a conflict-of-interest in Druyun's hiring and was not related to Boeing business, its financial performance or the 767 tanker program.
"Today's events represent another step toward concluding a very disappointing chapter in the company's 88-year history of serving our customers and operating with the highest integrity," Bain said in a statement.
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