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Ex-Navy Official’s Wife Paid Up to $50,000 by Consultant’s Firm With AM-Defense Probe

June 25, 1988

WASHINGTON (AP) _ A firm established by a central figure in the Pentagon bribery and fraud probe paid up to $50,000 in 1986 to the wife of the Navy’s then-procuremen t chief, Melvyn Paisley, according to federal and state records.

Vicki Paisley received the money from VAMO Inc., a Virginia firm incorporated in January 1986 by William Galvin, a consultant to defense contractors who was a member of VAMO’s board of directors.

Paisley, who was an assistant secretary of the Navy in 1986, is a defense consultant with a Washington office located in the same building as Galvin’s office.

The FBI searched both offices last week as part of a two-year investigation of whether defense contractors and consultants, many of them former military men, bribed Pentagon officials for contracting details that could be vital in winning contracts worth billions of dollars.

Vicki Paisley is now listed as VAMO’s president and registered agent. Her attorney, Robert Plotkin, said VAMO is a ″computer-type business″ that helps companies set up management plans. He said Mrs. Paisley would have no comment on her relationship with Galvin.

Galvin represents a number of firms whose offices were searched in the Pentagon probe, including United Technologies, Unisys Corp., Loral Corp. and Cubic Corp. He also is on the board of another firm whose offices were searched, Armtec Inc. of Palatka, Fla.

William Nussbaum, Galvin’s lawyer, said he would have no comment on matters pertaining to his client.

Information on the payment Vicki Paisley - listed as a range of $15,000 to $50,000 in ″compensation for services″ - is contained on her husband’s financial disclosure form filed with the Office of Government Ethics covering the year 1986. Paisley left government service on March 31, 1987.

Galvin’s connection with VAMO is contained in state corporation records in Richmond, Va. The Los Angeles Times reported on the Galvin-VAMO tie in Friday editions.

State corporation records also reveal a close relationship between Galvin and another consultant who is involved in the probe, Charles F. Gardner.

On Jan. 30, 1986, two days after VAMO was incorporated, Galvin formed Sapphire Systems Inc. and opened its offices three floors above those of VAMO in the same building in Vienna, Va., according to state records.

Among his partners in that company, according to state records on file in Richmond, Va., is Gardner of Malverne, N.Y., another defense consultant served with a search warrant last week in the Pentagon bribery probe.

Gardner is a former Unisys Corp. vice president and his files were searched last week by the FBI.

Paisley was the assistant secretary of the Navy for research, engineering and systems, a key acquisition post under former Navy Secretary John Lehman Jr., until he left the government last year and became a consultant to defense aerospace companies, including United Technologies and McDonnell-Doug las.

A United Technologies unit, Pratt & Whitney, hired Paisley within a week of his departure from government and also hired Galvin.

A search warrant in the Pentagon probe for United Technologies’ Washington offices alleged that Pratt & Whitney possessed sensitive documents that rival General Electric Co. had submitted to the Pentagon in competing for engine- building contracts worth hundreds of millions of dollars.

Paisley’s consulting office was bugged and phone there wiretapped in the probe, according to sources familiar with the investigation. In addition, his office and home were searched by FBI agents last week.

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