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Federal prosecutors are reportedly investigating the two


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executives who were recently fired in a conflict-of-interest case involving government contracts, dating back to when one of them was a top official at the Defense Department, a scandal that helped lead to the resignation of company CEO Phil Condit.

On Nov. 24, Boeing fired CFO Mike Sears after learning he spoke to a government official about hiring her while she still had a regulatory role over the jetmaker, then trying to cover up the overture. The company also fired Darleen Druyun, the official, whom Boeing eventually hired and made vice president and deputy general manager of its missile defense systems unit.

The criminal probe by U.S. prosecutors along with the Defense Department is focusing on discussions between Sears and Druyun last fall, when she still worked for the government, according to a report in

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Boeing, which fired Sears for violating company policies by communicating directly and indirectly with Druyun about future employment when she had not disqualified herself from acting in her official government capacity on matters involving Boeing, is cooperating in the investigation.

Boeing was already on the defensive over its ethical image after two midlevel employees were indicted last summer for allegedly stealing trade secrets during a bidding war with

Lockheed Martin

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