Former Boeing Exec Pleads Guilty To Conspiracy Charges

"I deeply regret my actions and I want to apologize."

Those words, spoken in broken voice, came from former USAF procurement officer and Boeing Vice President Darleen Druyun, who pleaded guilty Tuesday to one count of conspiracy in federal court.

She'll be sentenced August 6th. If convicted, Druyun faces up to five years in prison and a $250,000 fine.

Druyun was in charge of USAF negotiations with Boeing on a contract to replace the aging KC-135 tanker fleet with up to 100 767-200s. The $23 billion deal has come under intense fire from the likes of Senator John McCain (R-AZ), who view it as a boondoggle. Druyun is accused of nudging the deal toward Boeing and away from rival Airbus. Recent ANN stories have shown that Boeing was able to convince Air Force negotiators to bypass 19 of the 26 requirements set forth in the original Request for Proposals. Among them were requirements were the ability to fuel more than one aircraft at a time.

Shortly after the negotiations were concluded and Boeing got the nod, Druyun left the Air Force to become a vice president at Boeing with a salary of $250,000 a year.

The Pentagon investigation showed that Druyun entered secret negotiations about the job with Boeing six weeks before recusing herself from the tanker negotiations.

Druyun was fired from Boeing in November, along with the company's CFO, Michael Sears (below, right). In agreeing to cooperate with the ongoing investigation, Druyun said Sears contacted her about a top-level job in September 2002, while she was still conducting the tanker talks. Druyun said that the offer came after several encrypted emails were traded between her daughter, a Boeing employee, and Sears.

Defense Secretary Donald Rumsfeld said Druyun's plea should "be used as an example for others - that this department is not going to tolerate people who don't abide by the rules and don't adhere to the ethics requirements and the laws."

Boeing's Response

Boeing Senior Vice President and General Counsel Doug Bain issued the following statement today after the U.S. Attorney’s office in Alexandria (VA) released the details of its agreement with former Boeing executive Darleen Druyun:

"Today's action by the US Attorney's office is the result of Boeing voluntarily reporting unethical conduct to the US Attorney and other government agencies last November. At that time, Boeing dismissed Ms. Druyun and another executive involved in her hiring after an internal company investigation revealed that they had violated ethical practices. Boeing immediately brought this matter to the attention of the US Attorney, the Department of Defense Inspector General and the US Air Force.

"It is important to note the charge announced today relates to conflict-of-interest in Ms. Druyun's hiring and is 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. They also remind us that rules of governance and ethical behavior apply to people at all levels of business, including senior leadership."

FMI: www.boeing.com