Officials Admit to Bribe in Pentagon Deal

ALEXANDRIA, Va--A Navy official and a major defense contractor pleaded guilty yesterday to charges in the "Ill Wind" Pentagon procurement case, with the Navy man admitting he took a bribe to provide inside information on a contract.

The contractor, Teledyne Industries Inc., agreed to pay more than $4.3 million in penalties and to satisfy other claims in the case. saying a former employee who pleaded guilty earlier "had entered into a corrupt and illegal arrangement" with two others who still face charges.

The suspended Navy official, Stuart E. Berlin, agreed to cooperate with prosecutors in the continuing investigation which has resulted in a dozen guilty pleas so far. He is to be sentenced June 2 and could face as long as 25 years in prison and fines of as much as $750,000.

Assistant U.S. Attorney Joseph J. Aronica declined to comment when asked whether there would be more guilty pleas or how extensively Berlin's testimony might be used against other defendants. He said only, "The total investigation is moving along very quickly."

Berlin, indicted in the investigation dubbed "Ill Wind," pleaded guilty to conspiracy to commit bribery, receiving a bribe, wire fraud and making false statements. Teledyne Industries pleaded guilty to conspiracy and two counts of making false statements in connection with a contract with one of its divisions--Teledyne Electronics of Newbury Park, Calif.--worth about $24 million.

The company agreed to pay $1.5 million in penalties, $2.08 million in civil claims and $786,000 to reimburse the government for the cost of the investigation.

As part of the plea agreements, prosecutors dismissed counts of bribery and wire fraud against Berlin and Teledyne. Racketeering charges had been dropped at an earlier court hearing.

Still facing charges in a trial scheduled to begin April 3 are defense consultants Fred H. Lackner and William L. Parkin, as well as three Teledyne officials: George H. Kaub, Eugene R. Sullivan and Dale Schnittjer. Parkin was hospitalized last Friday after reportedly taking an overdose of pills.

Teledyne's statement said: "The company's decision to enter a plea agreement and make a settlement with the government primarily came from the recognition that a former employer, Michael Savaides, had entered into a corrupt and illegal arrangement with William Parkin, a consultant to Teledyne Electronics, and Fred Lackner, with whom the company had no relationship.

"Their purpose was to subvert the lawful operation of the government's procurement process," the company said. Savaides, who the company contends was defrauding Teledyne by taking money from Parkin, has pleaded guilty and is awaiting sentencing.

Berlin, 51, admitted that he had received a bribe for supplying inside information on contracts. He had been a supervisory electronics engineer and branch head of the ship systems engineering section at the Space and Naval Warfare Systems Command in Arlington, Va.