SPACE WIRE
Former Boeing executive charged in plot to steal rival's secrets
LOS ANGELES (AFP) May 12, 2004
A former Boeing Company manager became the third to be charged with conspiring to steal Lockheed Martin trade secrets involving a multibillion-dollar US Air Force rocket program, authorities said Tuesday.

Larry Satchell, 65, faces federal charges of conspiracy, obstruction of justice, theft of trade secrets, and violating the federal Procurement Integrity Act, said Assistant US Attorney Chris Johnson.

"A United States Magistrate Judge in Los Angeles issued an arrest warrant for Satchell, who is expected to surrender himself to federal authorities tomorrow (Wednesday)," the US Attorney's Office for the Central District of California said in a statement.

"If he were to be convicted of the three counts indictment, Satchell faces a maximum penalty of 25 years in federal prison," it said.

Authorities accuse Satchell, who headed a team that boosted Boeing's competitiveness by forecasting competitors' moves, of plotting with two other former Boeing managers.

Kenneth Branch and William Erskine were charged in June 2003 with conspiracy.

In July 1998, Boeing and Lockheed submitted bids for multibillion-dollar contracts on 28 Air Force Expanded Expendable Launch Vehicles.

In October 1998, Boeing was awarded 19 of the contracts.

Prosecutors charge Branch, who left Lockheed in 1997 to work for Boeing, brought with him proprietary information about the satellite-launching project worth about two billion dollars.

Branch is alleged to have traveled repeatedly from Florida, to Huntington Beach, California, where Boeing's EELV launch facility was, during 1997 to give Satchell proprietary and/or sensitive information about Lockheed's program.

Branch was allegedly recruited to the Boeing team by Erskine.

An affidavit against Satchell states that a former Boeing business development chief, Frank Slazer, wrote a 1997 memo to him and other staff asking for better assessment of Lockheed's competition for the contracts.

But he had warned that Boeing ethical guidelines be followed scrupulously, and that the former employees be warned not to disclose proprietary information belonging to their former employers.

According to the government, in late June 1999, a Boeing attorney assigned to question Branch and Erskine searched the two men's offices and found documents marked "Lockheed Martin Proprietary/Competition Sensitive," according to the government.

The find came after Erskine earlier that month is alleged to have told another Boeing employee that he hired Branch because he made an "under the table" offer to hand over the entire Lockheed EELV presentation in exchange for a job at Boeing -- as long as it won the Air Force contracts.

Boeing fired Branch and Erskine in early August 1999.

The two face trial on October 12. The investigation into the affair continues.

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