Couple plead guilty for defrauding Pentagon

LOS ANGELES, April 21 (Xinhua) -- An Arizona couple pleaded guilty on Monday to federal charges accusing them of defrauding the Pentagon and defense contractor Northrop Grumman out of about 2.5 million dollars.

Michael David Crabtree, 47, pleaded guilty to conspiracy and engaging in monetary transactions on property derived from unlawful activity. His 44-year-old wife, Susan Driscoll Crabtree, pleaded guilty to one count of wire fraud, prosecutors said.

Susan Crabtree faces up to 20 years in federal prison and a 250,000-dollar fine while her husband could receive 15 years imprisonment and fines totaling 500,000 dollars. Both will be ordered to pay restitution, prosecutors said.

Michael Crabtree worked at Northrop Grumman's El Segundo plant near Los Angeles from August 2004 until early 2007, in charge with ordering materials and supplies for Defense Department projects, including the F-18 Hornet and F-35 Joint Strikeforce Fighter jets, according to prosecutors said.

During that time, he ordered about 2.5 million dollars worth of materials for Grumman from a company, Advanced West, and had the payments from Grumman -- which were funded by Pentagon defense contracts -- sent to Driscoll Enterprises, which actually was a shell company ostensibly based in West Palm Beach, Florida, that was set up by Crabtree and his wife, prosecutors said.

Michael Crabtree tricked Northrop Grumman officials into thinking the materials had been delivered by claiming he had personally received the materials prior to other Northrop Grumman personnel arriving at work, according to prosecutors.

Michael Crabtree also directed subordinates to seek bids from Advanced West and the Houston-based company Delta Composites in an attempt to trick his employers into thinking there was competitive bidding for materials.

The couple were arrested last September, prosecutors said. They are scheduled to be sentenced July 14 by U.S. District Judge Otis Wright.