G.E. admits fraud

Press, 15 May 1985, Page 10

G.E. admits fraud

NZPA-AP Philadelphia General Electric Company, the United States’ fourth-largest defence contractor, pleaded guilty yesterday to defrauding the Government of SUSBOO,OOO (?1.76 million) on a Minuteman missile contract, and was fined the maximum of SUSI.O4 million (?2.28M). The plea came on what was to be the opening day of jury selection for District Court trial on the charges before Judge Louis Bechtle. A United States Attorney, Mr Edward Dennis, said General Electric’s guilty

plea meant it could be barred for up to three years from bidding on any new defence contracts, but that he had received no indication of what the United States Defence Department would do. General Electric pleaded guilty to 108 counts of making false statements and making and presenting false claims for payment to the Air Force to recover cost overruns on a contract of SUS 47 million ($103.4 million) to refurbish the Minuteman Mark-12a intercontinental ballistic missile.