Bahram Bordbar, 62, pleaded guilty during a hearing at a federal courthouse in Los Angeles to making false statements involving aircraft and aiding and abetting in the filing of a false tax return, the U.S. Attorney's Office said.
Bordbar is the owner of Prototype Engineering and Manufacturing, a Gardena-based company that had a contract with the Army to "overhaul and repair" linear actuators used on the AH-64-A Apache helicopter.
Prototype was only allowed to repair the DC motors used in the linear actuators after getting specific authorization from the Army.
Instead, prosecutors allege, Prototype used an outside contractor to repair 105 motors without Army approval, then installed the motors into overhauled linear actuators that were delivered to the military.
For the work, Bordbar admitted to receiving $320,000 from the military, money his plea agreement refers to as "ill-gotten gains."
Prosecutors also allege that Bordbar paid an employee $100,000 but told the employee that it was a gift and that he would take care of the taxes. As a result, the employee didn't report the money on a tax return, prosecutors said.
As part of the plea deal, Bordbar agreed to pay the Internal Revenue Service more than $28,000 to cover his employee's back taxes.
Bordbar will return to court for sentencing on Oct. 16. He faces up to 13 years in federal prison.
--This article is written by Sean Emery from Orange County Register and was legally licensed via the Tribune Content Agency through the NewsCred publisher network. Please direct all licensing questions to email@example.com.