2 Accused of Fraud in Kickback Schemes

Two Northridge men who worked as purchasing agents for aerospace companies were charged Wednesday with tax fraud for failing to report kickbacks that they received from a subcontractor, according to federal prosecutors.

The kickback schemes were two of the largest uncovered thus far by DEFCON (Defense Contractor Task Force), created to eliminate kickbacks in Southern California’s defense industry, said Assistant U.S. Atty. William Francis Fahey.

Fahey said Raymond Fisher, 67, a purchasing agent for Eaton Corp., and Frank Brown, 56, who worked for Hamilton-Avnet and Cetec Corp., each received kickbacks from the Dunham Corp., which produced components for defense and aerospace projects.

Fisher was charged in U.S. attorney’s office “informations” with receiving $40,000 in kickbacks in 1984 and 1985, and Brown with receiving $7,000 in the same period.

“Informations” are prepared without a grand jury investigation when prosecutors expect defendants to plead guilty.

No officials of Dunham have been charged in connection with the kickback scheme, but Fahey said the investigation is continuing.

In a related case, a 50-year-old Canoga Park man was charged with tax fraud over failing to report income he received from an illegal check-cashing scheme involving defense contractors, Fahey said.

Anthony Pastora earned more than $105,000 by participating in a scheme in which defense subcontractors filled out fraudulent expense reports, Fahey said.

If convicted, Fisher faces a maximum sentence of six years in prison and a fine of $200,000. Pastora and Brown each face maximum prison terms of five years and fines of up to $100,000.