Defense Consultant Denies Channeling Political Payoffs

JACKSONVILLE, Fla. — In the first extensive public comments by a prominent figure in the Pentagon fraud investigation, defense consultant William W. Roberts denied Tuesday that his small Florida company has funneled payoffs to influential politicians and defended his close ties to Rep. Bill Chappell Jr. (D-Fla.).

Roberts, whose firm Armtec Inc. figures in the defense procurement investigation, said that neither he nor his company have been involved in any illegal activities and demanded that the government detail allegations against him.

A longtime friend of Chappell, Roberts also denied allegations that Armtec had paid for a political consultant to work in the congressman’s campaigns.

“We haven’t funneled money to anyone,” said Roberts, who has been subpoenaed in the probe and whose firm was one of 44 sites searched by the FBI. “I wish we could get all this cleared up. . . . We’d like to see it laid out on the table.”

Accountant Testifies

Meanwhile, an accountant for Chappell, whose affairs are being investigated by federal officials, testified Tuesday before a grand jury in Alexandria, Va., about two defense industry officials’ 1984 purchase of a financially troubled Florida health spa partly owned by Chappell.

In a statement, Chappell said he had encouraged the accountant to testify, adding: “I want to answer all questions concerning the Wind Meadows (Racquet) Club and any other issue that has been raised.”

Roberts spoke to reporters as officials of the Unisys Corp., backed by a federal court order, entered Armtec’s small plant in Palatka, Fla., and began removing an estimated $1.1-million worth of equipment the giant computer firm said had been illegally withheld by Roberts’ company.

Earlier this month, Armtec was forced to shut down and lay off 89 employees when Unisys canceled its contract with Armtec to produce wiring assemblies for a weapons system being built by Unisys for the Pentagon. The move came amid allegations that Armtec had been padding its invoices and channeling improper benefits to influential defense officials.

Acknowledges Dispute

Roberts acknowledged Tuesday that there had been a longstanding dispute between the two firms over billing procedures, but he said there was nothing improper in what Armtec had done.

“We’ve got good accounting records, so what are you going to funnel?” he said. “We’re a small company. . . . We brought in barely enough to meet our payroll.”

Roberts also denied reports that Armtec had paid for a political consultant to work on Chappell’s campaign. The reports were based on a federal wiretap of a telephone conversation in which a defense industry representative instructed an unnamed political consultant to bill Armtec for his services to Chappell.

Roberts acknowledged that he had hired a consultant to work for Armtec who also did political work for Chappell. But he said the consultant, John Fitzpatrick, a former Unisys accountant, was paid only for helping him set up Armtec in 1986, and that any work he may have done for Chappell was strictly on his own time.

The government is “trying to make something out of the fact that (this consultant) and I are good friends,” he said.

Defends Contributions

Roberts defended his past political contributions to Chappell, saying: “I’d hope to contribute to him again, if I had the money. I contribute to a lot of congressmen.”

Federal sources have confirmed that the relationship among the company, several former Unisys officials and government or political figures is a focus of their probe in Florida.

The defense consultant said he has been subpoenaed by the federal grand jury in Alexandria, but has fought to quash it until federal investigators unseal the evidence they may have compiled against him and other individuals. He pledged to appear before the grand jury “only when they tell me what we’ve done, so we can defend ourselves.”

In Alexandria, meanwhile, Ray Crippen, Chappell’s accountant, testified before the grand jury Tuesday about a 1984 deal in which two defense consultants bought a financially troubled health spa in Ocala, Fla., and relieved Chappell and a partner of $172,000 in liabilities.

Health Club Purchase

In that transaction, W. Leonard Killgore Jr., a former Chappell aide who was a consultant for the Avco Corp. defense contracting firm, and George L. Dalferes, a representative of the Martin Marietta Corp., acquired the racquet club, which was facing foreclosure. Martin Marietta later bought the club from Killgore and Dalferes.

Chappell, in his statement Tuesday, said that the only way Crippen could answer questions about the transaction was to appear before the grand jury, since Florida law prohibits accountants from disclosing information about their clients. He pledged similar cooperation from other people who had worked for him.

Related story in Business.