Monday, Mar. 20, 1989

American Notes VIRGINIA

More than two years after it began, the Justice Department's investigation into the Pentagon bribery scandal, code-named Ill Wind, may finally be poised to blow in some major indictments. Charles Gardner, a former top executive of Unisys Corp., pleaded guilty last week to bribing former Assistant Secretary of the Navy Melvyn Paisley in return for Paisley's help in winning at least $194 million in contracts on the Aegis electronic-warfare system.

Gardner says he arranged for the purchase at an inflated price of a vacation condominium that Paisley owned in Sun Valley, Idaho. Prosecutors say the payment -- about $149,000 for a condo later sold for $100,000 -- constituted a bribe. The money came from a secret $5 million fund that Gardner set up with Unisys money and devoted to bribery and illegal campaign contributions, as well as his personal use. He allegedly replenished the fund by charging the military for consulting work that was never performed -- which would mean that the Pentagon unknowingly supplied the money to corrupt its own officials.

No charges have been brought against Paisley, who has denied any allegation that he was knowingly bribed. But U.S. Attorney Henry Hudson promises that the cooperation he expects to get from Gardner, as well as from two associates who were also charged, "will move this investigation forward at a tremendous pace." Declaring itself "outraged," Unisys announced its intention to sue Gardner, who was forced to resign last March.