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Special Segment (Def. Ripoffs) (Part II) #537805

NBC Evening News for Wednesday, Jun 27, 1984
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(Studio) Report introduced
REPORTER: Tom Brokaw

(NYC) Role of fraud in inflated defense contracts examined; bribery of Litton Inds. execs. by Frigitemp Corporation president Mel Silver and others in Navy contract cited as example Silver noted free in England after agreeing to testify against former associates. Sealed deposition of Silver's testimony obtained by NBC News and Better Govt. Association examined. Silver's testimony against Litton execs. Vincent Ferrigno, vice president Eddie Loganegro outlined, quoted on screen. [Former Frigitemp executive Joe BLACKMAN - recalls orders to pad labor costs submitted to Navy with help from Litton.] Silver's quote of Loganegro's remark on phoney Litton audit to substantiate amts. billed Navy noted. [BLACKMAN - pts. out that Navy was footing bill, not Litton.] Litton said refusing to allow Loganegro interview. [Senator William PROXMIRE - is worried over lack of zeal or concern at Justice Department or Navy in matter.] Navy reported agreeing to pay Litton's final bill, despite fact that contract terms had not been honored. Litton mentioned awaiting trial on fraud chgs. in another Navy contract while Navy is prepared to accept further Litton bids for future contracts.

(Studio) Litton's reticence over Frigitemp allegations noted; corporation attorney's statement quoted.
REPORTER: Tom Brokaw

Brokaw, Tom;
Hart, John

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