Former Boeing executives charges in plot to steal rival's secrets

WASHINGTON (AFP) Jun 26, 2003
Two former Boeing Company managers have been charged with conspiring to steal Lockheed Martin trade secrets involving a multi-billion US air force rocket program, authorities said Thursday.

In a criminal complaint filed Wednesday in a federal court in Los Angeles, Kenneth Branch and William Erskine were charged with conspiracy, theft of trade secrets and violating the Procurement Integrity Act.

Prosecutors said the two men conspired to get confidential Lockheed information to help Boeing win bids for the program.

Branch, 64, and Erskine, 43, residents of Cape Canaveral, Florida, were managers of a Boeing's program, based in Huntington Beach, California, with facilities in Cape Canaveral.

The two were involved in the Evolved Expendible Launch Vehicle (EELV), a rocket launch vehicle system, for commercial and government satellites, for which both Boeing and Lockheed Martin were contractors.

According to court documents, Boeing engineer Erskine recruited Branch from Lockheed Martin in 1996 "to bring proprietary Lockheed Martin EELV documents to Boeing."

Branch was offered a higher salary and began working at Boeing there in

Boeing won 19 of the 28 contracts awarded for the project in 1998, with the other nine going to Lockheed.

According to an affidavit filed with the complaint, Erskine told another Boeing employee in 1999 that "he had hired defendant Branch because defendant Branch, while still working at Lockheed Martin, came to defendant Erskine with an 'under-the-table' offer to hand over the entire Lockheed Martin EELV proposal presentation."

In August 1999, Branch and Erskine were sacked by Boeing.

Boeing declined to comment on the case, for which Lockheed Martin has sued Boeing.

"The charges against Mr. Branch and Mr. Erskine allege that they violated the fundamental rules of fair play," said US Attorney Debra Yang.

"By covertly using a competitor's secret information, they caused harm not only to Lockheed Martin, but also to the air force and taxpayers who finance government operations. Their improper conduct had huge ramifications because of the value of the contract."

If convicted on all three counts, Branch and Erskine face a maximum possible penalty of 15 years in prison and fines of up to 850,000 dollars.

SPACE.WIRE