United States v. Hughes Aircraft Co., Inc.

Hughes Aircraft Co., Inc. (“Hughes”) appeals from its conviction and sentence for conspiring to defraud and make false statements to the federal government. We affirm.

FACTS AND PRIOR PROCEEDINGS

Hughes contracted with the United States to manufacture microelectronic circuits, known as “hybrids,” which are used as components in weapons defense systems. The contracts required Hughes to perform a series of tests on each hybrid. As the hybrids made their way through the testing process, they were accompanied by paperwork indicating what tests had been performed, the results of those tests, and the identity of the operator of the testing equipment.

Hughes’s former employee, Donald LaRue (“LaRue”), was a supervisor responsible for ensuring the accuracy of the hybrid testing process. LaRue arranged for the paperwork to indicate falsely that all tests had been performed and that each hybrid had passed each test. When LaRue’s subordinates called his actions to the attention of LaRue’s supervisors, the supervisors did nothing about it. Instead, they responded that La-Rue’s decisions were his own and were not to be questioned by his subordinates.

Hughes and LaRue were charged with one…