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MAYNARD MAN PLEADS GUILTY TO RECEIVING KICKBACKS

 MAYNARD MAN PLEADS GUILTY TO RECEIVING KICKBACKS
 BOSTON, March 3 /PRNewswire/ -- A former employee of Raytheon


Company pled guilty today in U.S. District Court to paying kickbacks to a Raytheon subcontractor in connection with the U.S. Navy contract for an air-to-air guided missile, the Sparrow AIM-7M.
 United States Attorney Wayne A. Budd announced that John R. Kelly, Sr., 61, now residing in Maynard, Mass., pled guilty to a criminal information count charging him with providing kickbacks from Dec., 1986 through Nov., 1989 in connection with a subcontract awarded by Raytheon to a Billerica company named MAST Microwave Connector, Inc.
 At the plea hearing before U.S. District Judge Walter Jay Skinner a prosecutor said that Kelly was an employee of Raytheon from around 1978 to around Dec. 1989, serving as a product engineer on the Sparrow prime contract. During that time, he was also president of K & K engineering, Inc., an electronic components manufacturer located in his home in Maynard. Kelly provided approximately $82,000 to Christ Theophile, president of MAST Microwave Connectors, Inc. in order to obtain second-tier subcontract work which, as an employee of Raytheon, he was not permitted to perform. Under its contract with Raytheon, MAST Microwave was also prohibited from further subcontracting any cable assembly work without the prior written consent of Raytheon. Kelly and Theophile concealed from Raytheon and the Navy that K & K was producing the cable assemblies which MAST eventually supplied to Raytheon for the Sparrow. Kelly provided the kickbacks to Theophile, which amounted to 20 percent of the business provided to K & K Engineering.
 Kelly is scheduled for sentencing on May 12, 1992. He faces a maximum penalty of 10 years imprisonment or a fine of $250,000. The case was investigated by agents of the Federal Bureau of Investigation, the Naval Intelligence Service, the Office of Special Investigations of the Air Force, and the Defense Criminal Investigative Services. It was prosecuted by Assistant U.S. Attorney S. Theodore Merritt, Deputy Chief of the Major Crimes Division of the United States Attorney's Office. The investigation is continuing.
 -0- 3/3/92
 /CONTACT: Press Officer, U.S. Attorney's Office, 617-223-9445/


TM -- NE015 -- 4642 03/03/92 16:38 EST
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Date:Mar 3, 1992
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