Florida man tied to Las Vegas contractor charged with fraud

By Mary Manning

Thursday, April 16, 2009 | 11:48 a.m.

A Florida man who owned and managed a company that supplied aircraft parts to EG&G, a prime contractor of the U.S. Air Force, has been indicted by a federal grand jury on charges of conspiracy to defraud the government and theft.

Douglas Edward Phillips, III, 52, of Weston, Fla., is charged with one count of conspiracy to defraud the U.S. government and two counts of theft of government funds, U.S. Attorney Greg Brower of Nevada said today.

Phillips owned and managed Danco Aerospace Consulting, Inc., an aircraft parts company operating out of Florida. From about September 1995 to August 2004 Phillips and Richard Thomas Barkley, a logistician for EG&G in Las Vegas, allegedly conspired to defraud and steal funds from the U.S. Air Force, Brower said.

Phillips and Barkley are alleged to have prepared false paperwork indicating that parts and services were being ordered from Danco, when they were not. The paperwork submitted by Phillips and Barkley was paid for by EG&G. The Air Force reimbursed EG&G.

Phillips divided the proceeds with Barkley. EG&G paid Danco $847,350.56 for parts and services never provided. Phillips allegedly gave Barkley about $223,430 of the stolen funds.

Barkley pleaded guilty in 2007 to conspiracy, theft of government funds and money laundering. He was sentenced on Nov. 20, 2007 to three years and one month in prison.

Phillips faces up to five years in prison and a $250,000 fine on the conspiracy to defraud charge and up to 10 years in prison and a $250,000 fine on the theft charge. He will be scheduled for an initial appearance and arraignment in the near future.