Memo to lawmakers: Re-read McNulty's testimony to Senate committee.

I posted today an article on how the lawmakers are trying to block Boeing planned sale to Saudis. What is interesting is that former DAG Paul McNulty testified in 2006 to the Senate Commitee of Armed Services involved two investigations into Boeing. Here is an excerpt (h/t to Anon blogger):


Statement of Deputy Attorney General Paul J. McNulty before the Senate Committee on Armed Services

Washington, D.C.

Mr. Chairman, I appreciate the opportunity to appear before you to address the Committee regarding the recent settlement with The Boeing Company. I think that by reaching a common understanding of the facts and circumstances surrounding this agreement, you will agree that the Department reached a good settlement in the interests of the American taxpayer. Let me briefly describe the Boeing investigation and how the Government negotiates settlements in such cases.

Investigation

In fact, Boeing involved two investigations, both begun more than three years ago. In September 2002, the United States Attorney’s Office for the Central District of California, in Los Angeles, opened an investigation into allegations that Boeing had improperly used proprietary information obtained from a competitor, Lockheed Martin Corporation, to compete for launch services contracts under the Air Force’s Evolved Expendable Launch Vehicle Program–known as the EELV. The investigation focused on allegations involving Kenneth Branch, a former Lockheed employee who was hired to work on the EELV proposal of Boeing’s predecessor, McDonnell Douglas. Branch was hired by a Boeing employee by the name of William Erskine. In June 1999, another Boeing employee reported to Boeing management that Erskine had hired Branch in return for Branch providing Erskine with Lockheed documents pertinent to Lockheed’s EELV proposal. Boeing conducted an internal investigation and, in August 1999, terminated Branch and Erskine. Boeing also informed Lockheed and the Air Force that it had certain documents proprietary to Lockheed in its possession, but little was done at that time because Boeing identified only a few relatively insignificant documents.

In November 2001, in the course of civil litigation between Lockheed and Boeing, Lockheed discovered that Boeing had additional documents in its possession. This discovery prompted Lockheed to refer the matter to the Air Force and the Department of Justice, which triggered an investigation by the Defense Criminal Investigation Service along with the Los Angeles United States Attorney’s Office. Boeing hired outside counsel to conduct an internal investigation. More on McNulty's testimony on the DOJ website.