Prosecutors Cancel Boeing Plea Hearing

U.S. prosecutors canceled a hearing at which former Boeing Co. Chief Financial Officer Michael M. Sears was to plead guilty to deceiving the Defense Department about negotiations on a $23-billion contract for aerial refueling tankers.

Sears, 57, had agreed to admit guilt today as part of a deal with prosecutors investigating negotiations he had with a former Pentagon civilian official, Darleen A. Druyun, to whom he offered a job. Druyun pleaded guilty to felony conspiracy in April, and made a statement that she got the Boeing job offer while negotiating with the company on behalf of the Air Force.

The plea deal “was taken off the docket,” said Sam Dibbley, a spokeswoman for U.S. Atty. Paul J. McNulty in Alexandria, Va. “We’re not going into any more details,” she said. The hearing has not been rescheduled.

Boeing, the No. 2 U.S. defense contractor, was to provide as many as 100 767 jetliners that would be converted into tankers for mid-air refueling. The contract was delayed by Defense Secretary Donald H. Rumsfeld after the scandal came to light.

Former Boeing Chief Executive Philip Condit resigned a week after Druyun and Sears were fired in November. He hasn’t been accused of wrongdoing.

Druyun, who oversaw Boeing’s contracts with the Air Force, joined the Chicago-based company as a senior vice president two months after leaving the Pentagon in November 2002. The tanker talks were completed seven months later.

Sears’ lawyer, James D. Wareham, declined to comment. Co-counsel James R. Streicker couldn’t be reached for comment. Larry McCracken, a spokesman for Boeing, also declined to comment.

Druyun’s sentencing hearing is set for Sept. 3.

Boeing CEO Harry Stonecipher said last month that he still expected Boeing to win the tanker contract, though probably not until next year, pending Pentagon reviews.