Ex-Boeing V.P. pleads guilty to conspiracy
By Matt Andrejczak, CBS.MarketWatch.com
Last Update: 1:05 PM ET April 20, 2004


WASHINGTON (CBS.MW) - A former Boeing vice president pleaded guilty Tuesday to one-count of conspiracy for discussing job opportunities with the aerospace giant while she still worked for the Air Force overseeing billions of dollars of contracts Boeing bid on.


Darleen Druyun, 56, entered her plea in Alexandria, Va. federal court. The count carries a maximum of five years in prison and a $250,000 fine.

"I deeply regret my actions and I want to apologize," she said, her voice breaking slightly, the Associated Press reported.

Druyun has been under investigation for possible conflicts-of-interest connected with Boeing winning an Air Force fuel-tanker contract worth up to $23 billion.

The deal, suspended until the federal probe is complete, called for the Air Force to lease 20 Boeing 767 jets and buy 80 more.

Scrutiny of the aerial-fueling tanker program led to the firing of Druyun and former Boeing CFO Mike Sears last November after an internal company investigation revealed that they had violated ethical practices.

Sears allegedly offered Druyun a job at Boeing while she was an Air Force procurement officer. Druyun joined Boeing in January 2003.

At her plea hearing, Druyun admitted she later tried to cover-up the job talks. She has agreed to cooperate with the government's on-going investigation. Sears also may face criminal charges.

In a statement, Boeing (BA: news, chart, profile) said the guilty plea would not affect its financial performance.

"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," Boeing general counsel Doug Bain said. "They also remind us that rules of governance and ethical behavior apply to people at all levels of business, including senior leadership."

Shares of Boeing traded down 37 cents to $41.12 in midday trading.

Matt Andrejczak is a reporter for CBS.MarketWatch.com in Washington.

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