Ex-Himco chief pleads guilty in contract case

January 31, 1991|By Kelly Gilbert | Kelly Gilbert,Evening Sun Staff

The former president of a now-bankrupt Hanover, Pa. defense contracting firm bilked the government out of more than $5.2 million on subcontract work for Martin Marietta's Aero and Naval Systems Division in Middle River, according to federal prosecutors here.

The multimillion-dollar scam was aired publicly yesterday as Robert Carnaroli, former president of Hanover Industrial Machine Inc. (Himco), pleaded guilty to a false claims count in U.S. District Court in Baltimore.

Judge Frederic N. Smalkin, who accepted the plea, set sentencing for April 22.

Carnaroli, who now lives in Treasure Island, Fla., admitted in court that he submitted one false claim for $1.4 million in a June 1987 "progress payment" request to Martin Marietta for subcontract work on Navy missile launcher components.

But Assistant U.S. Attorney Dale P. Kelberman said the Defense Contract Audit Agency established -- after Martin Marietta officials discovered the scam -- that Himco actually received $5,228,123 more than it should have on subcontract work from 1985 to 1988.

Martin Marietta already has repaid $3.1 million of the overcharges to the government, said Kelberman.

He said Carnaroli's offense was "purely a financial crime" that didn't affect the Navy shipboard weapons system

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