U.S.: Couple Stole $2M From Defense Firm

Indictment Alleges Husband And Wife Spent Money On Jewelry, Race Car, Other Luxury Items

(AP)  A former Northrop Grumman employee and his wife were arrested Thursday for allegedly scamming the defense contractor out of $2.6 million and spending the money on jewelry, a race car and other luxury items.

Michael and Susan Crabtree were arrested at a relative's house in Irvine Thursday, a day after a federal grand jury in Los Angeles charged them with conspiracy, wire fraud and money laundering counts.

If convicted, each could face up to 125 years in prison.

Michael Crabtree began working three years ago in a Northrop Grumman plant in El Segundo where he was responsible for ordering material and supplies for the government's F-18 Hornet and the F-35 fighter programs. Before leaving early this year, he ordered some $2.6 million in goods that were never received, prosecutors said.

It was not clear if the two had retained an attorney. The couple was believed to have lived in Buckeye, Ariz., most recently, but their phone number there was unlisted.

According to the indictment, Crabtree persuaded a Santa Ana-based company called Advanced West to bill Northrop Grumman without supplying the materials.

Advanced West, in turn, agreed to forward payments from Northrop Grumman to a firm called Driscoll Enterprises in exchange for a 10 percent cut. Driscoll Enterprises, however, was a shell company set up by Susan Crabtree, prosecutors said.

The couple also falsified documents to give the appearance that Crabtree had sought competitive bidding from suppliers, even though he had planned to select Advanced West all along, the indictment alleges.

The Crabtrees allegedly used the proceeds to buy a new home, a race car, a recreational vehicle, jewelry, electronics and a luxury box at an Anaheim sports arena where the National Hockey League's Ducks play.

Northrop Grumman has since refunded the government, which ultimately bore the costs of the fraud, authorities said. The suspects each face one count of conspiracy, three counts of wire fraud and three counts of money laundering.

[MatthewCrabtree]

wow. you all are sooo irrogant you dont know half of this story! First Michael Crabtree (my dad) is a very good person he is prolly the nicest man you will ever meet and jim cook (owner of adwest) screwd his life over we were living happily in are house when we moved to airz. We were fine we wanted to get away from everything not to "flee" ya what ever we were just like any other family just because you sit at home and read about other peoples problems does not give you the right to say all these obscene things about my mother and father. email me if you think other wise. Evokiller3125@gmail(dot)com Name is matthew crabtree

[my2centss]

125 yrs in prison? Steal working peoples retirement and get nothing.

[getloud1]

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[jetlizhan]

jewelry, race car, etc - dead giveaway right there. stupid, stupid, stupid!!

[oleander8]

With all the tales we''re starting to hear about missing money related to Iraq - I''m sure they aren''t even a tip of the ice-berg. They got caught but I''ll bet the vast majority of the "new-rich-from-the-war-in-Iraq" never will be.

[l8c6]

Sounds like a couple of war supporting patriots who despise them liberals who don''t have a the guts to fight them terrorists.

Their stupidity is trying that and not being high enough on the global corporate food chain to get by with it. Small drug dealers should never steal from the crime bosses. They''ll get lynched every time.

It''s a good time for people to review Fahrenheit 911 on war profiteers and do their own research.

[gunnerv1]

Got too greedy, If they had kept it under million, the Feds would have looked at it as chump change.

[nlm2383]

The one good thing that might come out of this is that they bought all those expensive items that can be sold, so hopefully the company will get some of its money back. They deserve 125 years in prision... Morons.

[ladyephesus1]

haha. Brixton, youre funny! ;P

[truthspeake2]

Seems like the only people that can get Top Secret Government Clearances these days are crooks and criminals...any honest person doesn''t stand a chance working for the government or one of its many contractors.

[brixtonc]

They didn''t do their homework. If they''d patterned their scheme on Haliburton they''d be home free and clear. Amateurs.