Appendix — United States v. Bornstein
Supreme Court brief1976
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APPENDIX APR 10 1STS |
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| rica pe DAK. Ta.cuERK |
IN THE
Supreme Court of the United States
OCTOBER TERM, 1974
UNITED STATES,
Petitioner
—l’,
PHILIP L. BORNSTEIN, ET AL.
PETITION FOR A WRIT OF CERTIORARI TO THE UNITED STATES
COURT OF APPEALS
FOR THE THIRD CIRCUIT
PETITION FOR WRIT OF CERTIORARI FILED DECEMBER 6,
1974
CERTIORARI GRANTED JANUARY 27, 1975
tt i
IN THE
Supreme Court of the United States
OCTOBER TERM, 1974
No. 74-712
UNITED STATES,
Petitioner
—Y—
Puiuip L. BORNSTEIN, ET AL.
PETITION FOR A WRIT OF CERTIORARI TO THE UNITED STATES
COURT OF APPEALS FOR THE THIRD CIRCUIT
INDEX TO APPENDIX
Page
Relevant Docket Entries ...............-..-:-:-ssssessesssnsenesneennennnnnnnnnnes 1
Complaint ...............0-c-c-ccececeseseesnensnenssmenenennnnnsenananens sities alias 5
Answer of Defendant Gerald Page, Cross-Claim and Demand
for Trial by Jury ............---:-:--:c-:cseeeeeeeesseenennnenens conieneal iaeacadaii 12
Answer of Defendant Philip L. Bornstein .................------ 15
Request for Admissions by Plaintiff to Defendant Page’s
Attorneys ........ canes emcarrmnaecnia nat 17
| seneceai satan alae iaidiaidi 20
IE BB oon cc ccececceccsosesoscesessnvsssessnnsscesecovsssensconsenonsnssessensenss 23
WDNR © ...ccecceccescccsssessmsecesereeseesensensncverenseosensssosessosnsssssssesenees 25
Request for Admissions by Plaintiff to Defendant Born-
stein’s Attorney ........ cased sie paeeeenenesnhaiaeaaeansteneaianmamanbanantte 33
Answer to Request for Admissions by Defendant Page ........ 36
Answer to Request for Admissions by Defendant Bornstein... 37
Stipulation of Facts ...............-.s---sssssssesscssensenssesetensnnenenennenes 38
U.S. Attorney’s letter of 4/19/71 ~............-ceceeeeeeseeeens 52
Interrogatories Nos. 20, 21, 22, 28 ...........--..--:-sseseeeenens 54
ii INDEX 1
Stipulation of Facts—Continued Page Civil Docket 1141-67
Supplemental Interrogatories Nos. 1-4 and all govern-
ment answers thereto ..0.........cccccccccccsessessesseeneseesessececeeevees 57 UNITED STATES OF AMERICA, PLAINTIFF
a a eae é1
a a 63 a
meanpnpen i eonteleidennnsnes aibiiiaiasdesés qtianenieamiapsiabnmnsseiebeeetbiaaess 64 Pump L. BORNSTEIN, GERALD PAGE AND UNITED Na-
BEXDIDIt 4 ...nnnseeseenseseesssessenncnnnneencnnccencnnncszencenerserseeecenees 66 TIONAL LABS, Division of Sonora Electromatics, Inc.,
7 ERs ssietialieiaitadisalai lamest ihe ele 67 DEFENDANTS
a EPR Rated om eM ene OE 69
COOPER TUE GE TID cecceeccscccsccccccssscnucscccnssecccccvessssesessse 71 BASIS OF ACTION:
Invitation, Bid and Award dated 5/4/62 —..........--.. ee. 84
Public Voucher for Purchases and Services Other than Per- | False Claims Statute; presentation of false claim
sonal No. 125544, dated 3/5/64 20...........cccccccceccseceseeceeceeeeees 85 re manufacture of radio kit
Letters to U.S. District Judge Kitchen relating to Stipulation
of Facts filed 4/13/73: DOCKET: ENTRIES
Letter dated 5/22/73 (with official records of Toby-
hanna Army Depot, Penn.) from U.S. Attorney ........ 87 _—
Letters dated 5/24/18 and 6/25/73 from Attorneys DATE FILINGS—PROCEEDINGS
William Rossmore and Jack Balan, respectively ........ 1 :
Letter dated 6/4/73 (with affidavit of John E. Russell) 11- 6-67 Complaint filed 11-38-67.
ID I - soil nielsitratmmeeipsanunaiiseiiemacideions 107 11- 6-67 Summons issued.
Letter dated 6/7/73 from Attorney Ballan .................... 111 1-10-68 Summons returned served on Gerald Page on
Letter dated 6/11/73 from U.S. Attorney ........................ 113 12-5-67; on Philip L. Bornstein on 1-8-68; Not
Order of Dismissal ......................... sendensteosensentisevasntnnsonscensastonscensees 115 Served as to United National Labs, Division of
Order Granting Petition for Certiorari ..........0..0.00.0000.000000000... 117 Sonora Electromatics, Inc., filed
1-19-68 Answer of Gerald Page; crossclaim against Philip
L. Bornstein and United National Labs, Division
of Sonora Electromatics, Inc.; and Demand for
Jury, filed 1-18-68
1-24-68 Answer of Philip L. Bornstein, filed
| 5-16-68 Plaintiff's Request for Admissions directed to de-
fendant, Gerald Page, filed 5-15-68
5-16-68 Plaintiff's Request for Admissions directed to de-
fendant, Philip L. Bornstein, filed 5-15-68
8- 7-68 Interrogatories of Gerald Page and plaintiff's
answer filed 8-6-68.
——— ae
DATE
——————————————————
FILINGS—PROCEEDINGS
10-28-68
3-24-69
4-14-69
4-18-69
5- 1-69
5- 5-69
6-17-69
6-18-69
6-19-69
6-19-69
1- 8-71
1- 8-71
1-14-71
Plaintiff’s documents in answer to certain inter-
rogatories of the defendant, Gerald Page, filed
10-25-68
Supplemental Interrogatories of Gerald Page and
plaintiff’s answers filed 3-21-69.
Plaintiff’s answer to supplemental interrogatory
No. 2, filed 4-11-69
Plaintiff’s answers to interrogatories Nos. 8, 9 and
25, filed 4-17-69
Answers of defendant Philip L. Bornstein to Re-
quest for Admissions, filed 4-30-69
Pre-trial order, filed 5-2-69 (Shaw) Notice mailed.
Plaintiff’s supplemental answers to interrogatories
of Gerald Page, filed 6-16-69
Plaintiff’s supplemental answer to interrogatory
No. 18 of Gerald Page, filed 6-17-69
Plaintiff’s copies of Model Invoices with Material
Inspection and Receiving Reports in compliance
with Gerald Page’s interrogatory No. 18, filed
6-18-69
Affidavit of service of copies of plaintiff's Model
Invoices with Material Inspection and Receiving
Reports in compliance with Gerald’ Page’s inter-
rogatory No. 18, filed 6-18-69.
Notice of Motion by plaintiff for partial summary
judgment; to strike the third affirmative defense
in answer of Gerald Page, and affidavit of serv-
ice, filed 4-6-71. (Brief submitted)
Plaintiff’s list of documentary exhibits, filed 4-7-71
Ordered action placed on non-jury calendar.
(Shaw) (4-8-71)
FILINGS—PROCEEDINGS
2- 1-71
10- 4-72
3-19-73
3-19-73
3-19-73
3-21-73
3-26-73
3-29-73
4-13-73
6-26-73
6-26-73
7-12-73
7-19-73
Notice of motion by plaintiff for partial summary
judgment; as to defendants, Gerald Page and
Philip L. Bornstein; to strike the third affirma-
tive defense in the answer of defendant, Gerald
Page, and affidavits of service, filed 4-22-71 (ret.
5-24-71) (No brief submitted)
Hearing on plaintiff’s motion for partial summary
judgment as to defendants, Gerald Page and
Philip Bornstein; to strike the third affirmative
defense in answer of the defendant, Gerald Page.
Ordered motion denied. (Shaw) (11-29-71)
Order of Re-Assignment and Re-Allocation to Judge
Cohen, filed 10-3-72. (Coolahan) Notice mailed.
Supplement to List of Documentary Exhibits, filed
3-15-73
Supplemental Answer to Interrogatories, filed
Second Supplement to List of Documentary Ex-
hibits, filed 3-16-73
Second Supplemental Answer of Plaintiff to Inter-
rogatories, filed
Trial moved before Hon. John J. Kitchen, Judge
and Jury; Case to be submitted on Briefs.
Stipulation of Settlement placed upon the Record;
Stipulation of Facts by U.S.A., filed
Various letters, filed
Opinion, filed (Kitchen) Notices mailed
Judgment in favor of Plaintiff, United States of
America, and against Defendants, Philip L. Born-
stein and Gerald Page, jointly and severally, in
the sum of $70,079.40, and costs, filed (Kitchen)
Notice mailed.
Letter Re: Costs, filed
4
DATE FILINGS—PROCEEDINGS
7-19-73 Statement of Plaintiff’s costs, taxed at $70.84,
filed
7-19-73 Order of Dismissal as to defendant United National
Labs, Division of Sonora Electromatics Inc., a
corporation of the State of New Jersey, without
costs, filed (Kitchen) Notice mailed
8-20-73 Notice of Appeal by Deft. Philip L. Bornstein,
filed 7-26-73 (Copies mailed Clerk, USCA, U.S.
Attorney & Stavis, Richardson, etc.)
8-20-73 Notice of Appeal, filed 8-16-73 (Copies mailed
Clerk, USCA, Jack Ballan, Esq. & Stavis, Rich-
ardson, etc.)
8-23-73 Record on Appeal, mailed Clerk, U.S. Court of Ap-
peals. (Notice furnished Counsel)
9- 7-73 Notice of Appeal by defendant Gerald Page, filed
9-6-73 (Copies mailed to Clerk, U.S.C.A. and Jack
Ballan, Esq.)
9- 9-74 Opinion of U.S. Court of Appeals, filed
9-27-74 Certified copy of Judgment of U.S. Court of Ap-
peals affirming district court as to double dam-
ages and the award of a single forfeiture; and
vacating award of forfeitures in excess of
$2,000.00, filed
5
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
Civil No. 1141-67
[Filed January 6, 1967]
COMPLAINT
The plaintiff, the United States of America, by its
attorney, David M. Satz, Jr., United States Attorney for
the District of New Jersey, (appearing by Assistant
United States Attorney, Carolyn E. Arch), for its com-
plain alleges herein:
1. This is a civil action brought by the United States
pursuant to the provisions of Sections 3490 and 5438
of the Revised Statutes, 12 Stat. 696, Title 31 U.S.C.
Sections 231, 233. This Court has jurisdiction of this
action by virtue of Section 3491 of the Revised Statutes,
31 U.S.C. Section 232, as amended.
2. At all times hereinafter mentioned, defendant
United National Labs, Division of Sonora Electromatics,
Inc. (hereinafter United) was and is a corporation of the
State of New Jersey with principal offices of business
at No. 295 Vreeland Avenue, Paterson, New Jersey, was
engaged in the business of buying and selling election
tubes, and is within the jurisdiction of this Court.
3. At all times hereinafter mentioned, defendant Philip
L. Bornstein was part owner and General Manager of
United and defendant Gerald Page was part owner,
Vice-President and Manager of Sales of defendant United.
Defendant United was operated and managed by defend-
ants Philip L. Bornstein and Gerald Page. Defendant
Philip L. Bornstein resides at No. 51 Spottswood Road,
Glen Rock, New Jersey, and is within the jurisdiction
of this Court. Defendant Gerald Page resides at No.
140 Dean Street, Glen Rock, New Jersey, and is within
the jurisdiction of this Court.
4. None of the defendants were in the military or
naval forces of the United States, or in the militia or
6
called into or actually employed in the service of the
United States, during the times involved in this action.
5. At all times hereinafter stated Model Engineering
and Manufacturing Corp., Inc., (hereafter Model), was
and is an Indiana corporation, with principal offices at
Huntington, Indiana, engaged in the business of manu-
facturing and building electronic radio equipment and
radio sets.
6. At all times hereinafter stated the United States
Army Signal Supply Agency and the Chicago Procure-
ment District were divisions of the Department of the
Army, an agency and instrumentality of the plaintiff,
vested with the responsibility for the procurement of
electronic equipment and parts for the Department of
the Army, as authorized by 10 U.S.C. 2304 (public law
1028, 84th Congress).
7. By Supply Contract No. DA-36-039-AMC-01080
(E), (hereafter Contract) dated August 29, 12€?. be-
tween the United States Signal Supply Agency and
Model, Model undertook to manufacture for and supply
to the Department of the Army Radio Kit Sets, each
of which was to contain the following sub-items: A radio
transmitter kit, a radio receiver kit, a power supply
kit, a radio transformer kit, and a radio accessory kit.
The total dollar volume of the contract and its supple-
ments was $2,077,861.76.
The component parts list of this contract specified that
Sub-item #1-5-33, to be included in the radio accessory
kits, called for: 1
“2 ea. Tube, Electron JAN type 4X150G Per Speci-
fications, HIL. E-1 and T55 MIL, E-1, 302F dated
4/17/57”
The Specifications pertinent to JAN type tube 4X150G
provided as follows:
3.7.1.1. “JAN” prefix. The designation of all tubes
procured under this specification shall bear the prefix
“JAN”, except that in the case of small tubes (T-6 %
bulb outline or smaller) the prefix “J” shall be used.
Tubes procured under a contract which either permits
7
or requires any changes in any of the conditions or re-
quirements of this specification shall not bear the prefix
“JAN” nor any abbreviation thereof. The “JAN” brand
is registered under number 504860 by the United States
Patent Office and shall be used only on tubes which have
passed Government inspection.
3.7.1.2 Qualification code. The qualification code mark-
ing follows the “JAN” prefix. This designation is as-
signed to the manufacturer for use on all tube types
of his manufacture which have passed the qualification
tests and have been approved for inclusion on the Quali-
fied Products List. The code-designating letters shall be
as listed in Publication NAVSHIPS 900,152. The code-
designation shall be used only by the manufacturer to
whom it has been assigned and only as a part of the
designation on tubes manufactured at the plant to which
the qualification approval was granted. In the case of
small tubes (see 3.7.1.1), the manufacturer’s code desig-
nation may be abbreviated by deleting “C” (the indica-
tion that the code has been assigned to a commercial
organization in the United States or Canada).
3.7.1.2.1 Tubes not having qualification. Tubes pro-
cured under this specification from a source of supply
for which no qualification approval has been granted,
shall be marked “JAN” followed by the type on the side
wall of the base, or on the envelope of metal, lock-in
tubes, or other glass tubes, or on the bulb of tubes with-
out bases. The prefix “J”, abbreviation for “JAN”, shall
be used only as specified in 3.7.1.1. The manufacturer’s
code name which signifies qualification shall not be used
on any part of the tube.
8. The JAN 4X150G electron tubes are not manufac-
tured for commercial use; they are used only with mili-
tary equipment.
9. The only authorized manufacturer of the 4X1500
electron “JAN” tube was and continues to be Eitel Mc-
Cullough, Incorporated, of San Carlos, California (here-
after Eimac). The “JAN” designation on the tubes
which can only be placed thereon by the manufacturer
after they have passed Government source inspection,
is an abbreviation for the Joint Army Navy qualification
approval standard registered by the United States Patent
Office. A tube with “JAN” designation indicates it has
been inspected and approved by the United States Gov-
ernment at the source (place) of manufacture.
10. Model, as contractor, made the following certifica-
tion concerning used or surplus material:
“The offeror/contractor certifies that the material
offered is new, recently manufactured, has never
been used and is not former surplus of any type.”
11. Due to the requirements of the equipment specifi-
cations and complete “JAN” tests as required by the
“JAN” specifications the use of a commercial tube which
is non- “JAN” branded would require prior written ap-
proval from the Government Contracting Officer ad-
ministering the contract. No such approval had been
given to Model under the contract.
12. In October, 1963 defendants Philip L. Bornstein
and Gerald Page, acting through defendant United, of-
fered to sell electron tube type 4X1500 to Model, which
were required by Model under the Contract, and Model
Ordered 120 JAN 4X150G electron tubes from defend-
ants.
13. In October, 1963, two shipments of 4X150G tubes,
120 in number, were sent by the defendants to Model,
but did not have “JAN” stamped on the tubes which
indicated to Model that the tubes were not source in-
spected as called for under the Contract. Model returned
them to the defendants with the request that they be
source inspected and properly stamped.
14. Model became concerned that United might not
be able to furnish the required tubes which met the
specifications of the contract and asked that United con-
firm in writing that proper tubes could be furnished.
15. By letter dated January 24, 1964, signed by de-
fendant Philip L. Bornstein, Vice-President, United Na-
tional Labs, Model was advised as follows:
“This letter is to stand as affirmation by us that we
are fully equipped and capable to delivery (sic) any and
all electron tubes and semi-conductors on which we
9
accept purchase orders from you to the applicable mili-
tary specifications and government source inspection sup-
plied as required.”
16. Thereafter the defendants jointly and severally
undertook a scheme to defraud Model and the plaintiff.
Said fraudulent scheme consisted of defendants’ acquisi-
tion of non-“JAN” 4X150G tubes which were defective,
obsolete and without warranty; imprinting and causing
to have imprinted on such tubes the Government ap-
proval designation “JAN”; making or causing to be
made a United States Government Inspector’s Stamp (a
one inch square in which there is an eagle with three
stars over it); stamping and causing to be stamped on
their purchase orders a United States Government In-
spector’s stamp; and shipping and causing to be shipped
to Model to fulfill the Contract non-“JAN” 4X150G elec-
tron tubes with the “JAN” designation imprinted there-
on, together with purchase orders with a United States
Government Inspector’s stamp mark thereon.
17. Thereafter Model accepted shipments from the de-
fendants of the 4X150G electron tubes, believing that
they were “JAN” 4X150G electron tubes as called for
under the Contract. From the period of October 1963,
through February 1964 Model purchased electron tubes
type 4X150G from the defendants. The Sales Invoices
issued by the defendants for sales of 4X150G electron
tubes to Model designated as “JAN”, are as follows:
INVOICE DATE QUANTITY
A 11073 1/16/64 60
A 11351 1/27/64 20
A 11356 1/29/64 10
A 11357 1/29/64 6
A 11355 1/29/64 18
A 11354 1/29/64 18
A 11363 1/30/64 20
A 11364 1/30/64 20
A 11362 1/30/64 20
A 11361 1/30/64 20
10
INVOICE DATE QUANTITY
A 11360 1/30/64 20
A 11372 2/ 4/64 13
A 11371 2/ 5/64 17
A 11370 2/ 5/64 20
A 11369 2/ 5/64 18
A 12263 2/18/64 20
A 12268 2/18/64 20
A 12262 2/18/64 20
A 12265 2/18/64 20
A 12264 2/18/64 29
A 12260 2/18/64 20
A 12261 2/18/64 20
Each of these invoices contained the following refer-
ence:
“Gov. Contract No. DA 36-039-AMC-1080 E”
A total of 442 of these defective electron tubes were
received by Model from the defendants. All of such
tubes were used by Model to fulfill the Contract.
18. In furtherance of the above-described fraudulent
scheme, defendants issued a “certificate of compliance”
with each shipment of electron tubes to Model. The
“Certificate of Compliance” was signed, “Gerald Page,
ee United National Labs,” and read as
ows:
“It is hereby certified that all materials used in the
manufacture of parts in the quantity called for on the
subject purchase order received by Model Engineering
& Mfg. Corp. conform to the material and/or manu-
ae specifications as called for on said purchase
order.
Physical, Electrical, and/or Chemical test reports are
on file with us or with our suppliers for examination
and indicate conformance with applicable specification
requirements.”
19. As a direct consequence of the aforesaid fraudulent
scheme, the claims for payment submitted by Model to
= a Oe ee
il
the United States or to higher tier contractors of the
United States were false and fraudulent and were then
known by the defendants to be false and fraudulent, and
the presentation of the said false and fraudulent bills
and claims were caused solely and directly by the afore-
said wrongful conduct of the defendants.
20. The defendants, and each of them, thereby became
and is jointly and severally liable to the United States.
21. As a further direct consequence of the aforesaid
fraudulent scheme, the United States was caused to sus-
tain total damages in the amount of $18,042.44, com-
puted as follows:
The unit price of “JAN” 4X150G electron tube is
$40.82 each; 442 x $40.82 — $18,042.44.
WHEREFORE, the plaintiff, the United States of
America, demands judgment against the defendants in
the sum of double the damages sustained as a result of
defendants’ violations of the False Claims Statute; $2,-
000.00 against each of the defendants for their individual
acts in furtherance of the fraudulent scheme; $2,000.00
against each of the defendants for each and every other
act done in violation of the False Claims Statute, together
with interest and costs of this suit.
Davip M. SaATzZ, JR.
United States Attorney
By: /s/ Carolyn E. Arch
CAROLYN E. ARCH
Assistant U.S. Attorney
12
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
Civil Action File No. 1141-67
[Filed January 19, 1968]
ANSWER OF DEFENDANT, GERALD PAGE, CROSS-
CLAIM AND DEMAND FOR TRIAL BY JURY
Defendant Gerald Page answers the complaint herein
as follows:
. 1. This defendant admits the allegaiions of Paragraph
. 2. This defendant admits the allegations of Paragraph
8. This defendant denies the allegations of Paragraph
3, insofar as those allegations apply to him except that
he admits that he resides at 140 Dean Street, Glen
Rock, New Jersey and that he denies knowledge or in-
formation as to the allegations with respect to the other
defendants.
, 4. This defendant admits the allegations of Paragraph
5. This defendant denies knowledge or information
as to the allegations of paragraph 5.
6. This defendant denies knowledge or information
as to the allegations of paragraph 6.
7. This defendant denies knowledge or information
as to the allegations of paragraph 7.
8. This defendant denies knowledge or information
as to the allegations of paragraph 8.
9. This defendant denies knowledge or information
as to the allegations of paragraph 9.
10. This defendant denies knowledge or information
as to the allegations of paragraph 10.
11. This defendant denies knowledge or information
as to the allegations of paragraph 11.
12. This defendant denies the allegations of paragraph
12 except that he admits that defendant United offered
et ae
ee ee ee
13
to sell electronic tube Type 4X150G to Model and that
Model ordered 120 JAN 4X150G electronic tubes from
United.
13. This defendant denies the allegations of paragraph
13 with respect to him and denies knowledge or in-
formation thereof with respect to the other defendants.
14. This defendant denies knowledge or information
with respect to the allegations of paragraph 14.
15. This defendant denies knowledge or information
with respect to the allegations of paragraph 15.
16. This defendant denies the allegations of paragraph
16 as to him and denies knowledge or information
thereof with respect to the other defendants.
17. This defendant denies the allegations of paragraph
17 as to him and denies knowledge or information
thereof with respect to the other defendants.
18. This defendant denies the allegations of paragraph
18 except that he admits signing substantially the form
quoted therein and relies on the original thereof for the
language thereof.
19. This defendant denies the allegations of paragraph
19.
20. This defendant denies the allegations of paragraph
20.
FIRST AFFIRMATIVE DEFENSE
Model ordered and accepted the tubes referred to in
the complaint knowing or having reason to know that
they did not comply with the terms of its contract with
the plaintiff. Any damage suffered by the plaintiff was
as a result of the conduct of Model and not the result
of the conduct of the defendants herein.
SECOND AFFIRMATIVE DEFENSE
Any acts and conduct of the defendant Page were
carried out at the direction of the defendant Bornstein
and in all respects this defendant acted as an agent and
servant of defendants Bornstein and United and without
knowledge on his part of any fraud or other wrongdoing.
14
THIRD AFFIRMATIVE DEFENSE
The plaintiff suffered no damage as a result of the
alleged acts and conduct of the defendants.
CROSS-CLAIM
Defendant Page repeats the allegations of the Second
Affirmative Defense set forth above. As a result thereof,
the defendants Bornstein and United are required and
obligated to indemnify and reimburse the defendant Page
for all claims, damages and payments which he may be
required to make under the complaint herein.
WHEREFORE defendant Page demands judgment:
(a) Dismissing the complaint herein with costs,
(b) On his crossclaim, for damages against the de-
fendants Bornstein and United in whatever amount may
be found against him in favor of plaintiff together with
costs ;
Defendant demands a trial by jury of all issues in
this action.
STAVIS, RICHARDSON, KOENIGSBERG
AND ROSSMOORE
Attorneys for defendant
Gerald Page
By /s/ William Rossmoore
William Ressmoore
A Member of the Firm
15
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
Civil No. 1141-67
[Filed January 19, 1968]
ANSWER
Defendant, Philip L. Bornstein, by and through his
attorney, Jack Ballan, by way of Answer says:
1. Defendant, Philip L. Bornstein, has no informa-
tion either to affirm or deny paragraph 1.
2. Said defendant admits paragraph 2.
3. Said defendant admits paragraph 3.
4. Said defendant admits paragraph 4.
5. Said defendant has no information either to affirm
or deny paragraph 5.
6. Said defendant has no information either to affirm
or deny paragraph 6.
7. Said defendant has no information either to affirm
or deny paragraph 7.
8. Said defendant has no information either to affirm
or deny paragraph 8.
9. Said defendant has no information either to affirm
or deny paragraph 9.
10. Said defendant has no information either to affirm
or deny paragraph 10.
11. Said defendant denies paragraph 11.
12. Said defendant denies paragraph 12.
13. Said defendant denies paragraph 13.
14. Said defendant has no information either to affirm
or deny paragraph 14.
15. Said defendant admits paragraph 15.
16. Said defendant denies paragraph 16.
17. Said defendant has no information either to affirm
or deny paragraph 17.
18. Said defendant denies paragraph 18.
19. Said defendant denies paragraph 19.
16
20. Said defendant denies paragraph 20.
21. Said defendant denies paragraph 21.
/s/ Jack Ballan
JACK BALLAN
Attorney for defendant
17
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
Civil No. 1141-67
[Filed May 18, 1968]
REQUEST FOR ADMISSIONS
TO: STAVIS, RICHARDSON, KOENIGSBERG and
ROSSMORE, ESQS.
Attorneys for defendant Gerald Page
744 Broad Street
Newark, New Jersey
The Plaintiff, the United States of America, hereby
requests the defendant, Gerald Page, pursuant to the
provisions of Rule 36 of the Federal Rules of Civil Pro-
cedure, to admit, within ten days after service of this
Request, for the purpose of the above-entitled action only,
and subject to all pertinent objections to admissibility
which may be interposed at trial, that the following
statements are true:
1. That the defendant, Gerald Page, in several signed,
sworn statements furnished by him to the Federal Bureau
of Investigation stated that it was the defendant, Philip
L. Bornstein, who caused the fictitious “JAN” designa-
tion to be placed on the electron tubes shipped to Model
Engineering and Manufacturing Corp., Inc. (Model).
2. That the defendant, Gerald Page, in a signed, sworn
statement furnished by him to the Federal Bureau of
Investigation, admitted that he knew that a United
States Government Inspector’s Stamp (a one inch square
in which there is an eagle with three stars over it)
had been:
(a) procured by defendant Philip L. Bornstein;
(b) used by defendant Philip L. Bornstein on pur-
chase orders for Electron tubes shipped by defendant
United National Labs, Division of Sonora Electromatics,
18
Inc., (United) to Model required by Model to fulfill
Government Contract No. DA-36-039-AMC-01080(E).
3. That the defendant, Gerald Page, in a signed,
sworn statement furnished by him to the Federal Bureau
of Investigation stated that he knew that the electron
tubes shipped from United to Model were falsely branded
“JAN-CIM” and were falsely dated.
4. That the defendant, Gerald Page, in a signed,
sworn statement furnished by him to the Federal Bureau
of Investigation stated that he knew that the tubes sold
to Model by United through United—Page, Inc., were
“falsely” inspected.
5. That in an indictment dated December 8, 1965,
found by the Grand Jury in and for the District of
New Jersey, sitting at Newark, the defendant, Gerald
Page, was charged with violation of Title 18 U.S.C.,
Sections 1001, 1002, 371, and 286.
6. That on March 11, 1966, the defendant, Gerald
Page, entered a plea of guilty before the Honorable
Anthony T. Augelli, United States District Court Judge
to Count II of said Indictment which charged as follows:
That from on or about January 24, 1964 through
June 3, 1964, in Glen Rock and Paterson, in the State
and District of New Jersey,
PHILIP L. BORNSTEIN;
GERALD PAGE
did knowingly, wilfully, and unlawfully, conspire, con-
federate and combine, and agree with one another, to
commit offenses against the United States as follows:
A) PHILIP L. BORNSTEIN and GERALD PAGE
conspired to cause to be submitted to an agency
of the United States of America, that is, the
Chicago Procure.nent District of the Department
of the Army, false and fraudulent statements
and representations to material facts in a mat-
ter which was then pending before the said
agency of the United States, contrary to the
provisions of Section 1001, Title 18, U.S.C.
B) PHILIP L. BORNSTEIN and GERALD PAGE
conspired to possess false and forged documents
:
;
5
:
PROS ew
ee
19
for the purpose of enabling the Model Manu-
facturing Company to obtain from the United
States of America money under a contract that
the Model Manufacturing Company then had
with the Chicago Procurement District of the
Department of the Army, which contract called
for the use of items which had been falsely
represented by the documents possessed by
PHILIP L. BORNSTEIN and GERALD PAGE,
contrary to the provisions of Section 1002 of
Title 18, U.S.C.
And the Grand Jury further charges:
That in furtherance of the aforesaid conspiracy and
to accomplish the objects thereof, the said defendants
did commit divers overt acts, among which were the
following:
a) On or about January 27, 1964, PHILIP L.
BORNSTEIN and GERALD PAGE shipped In-
voice No. A11351, accompanied by certain radio
tubes to Model Manufacturing Company.
b) On January 24, 1964, PHILIP L. BORNSTEIN
and GERALD PAGE sent a letter to Model
Manufacturing Company.
In violation of Title 18, U.S.C., Section 371.
7. That pursuant to the aforesaid plea of guilty the de-
fendant, Gerald Page, was sentenced by the Honorable
James A. Coolahan, Judge, United States District Court,
to imprisonment for two years, the imposition of which
was suspended, and placed on probation for two years.
8. That the attached documents designated Exhibit
“A”, “B” and “C”, respectively, photostatic copies of
sworn, signed statements furnished by the defendant,
Gerald Page, to the Federal Bureau of Investigation are
genuine.
DAvip M. SAtTz, JR.
United States Attorney
By: /s/ Carolyn F. Arch
CAROLYN E. ARCH
Assistant U.S. Attorney
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25
EXHIBIT C .
Paterson, New Jersey
15 October 1964
I, Gerald Page, being duly sworn hereby make the
following free and voluntary statement to David W.
Oldham and Eugene W. Vahey, who have identified
themselves to me as Special Agents of the Federal
Bureau of Investigation.
I have been told that I do not have to make a state-
ment, and any statement that I do make may be used
against me in a court of law. Special Agent David W.
Oldham has told me that I have the right to talk with
a lawyer of my own choice or anyone else, before saying
anything at all. No threats, promises, or offers of
reward have been made in order to induce me to make
this statement.
I was born October 27, 1925 at Brooklyn, New York,
and currently reside at 140 Dean Street, Glen Rock,
New Jersey. I am presently a part owner of United-
Page, Incorporated, Glen Rock, New Jersey. From 1955
until 1962, I was the sole owner of a one man company
known as Page Electronics, New York, New York, whose
main activity was the buying and selling of surplus
electronic tubes. I did an annual gross business of be-
tween $45,000.00 and $60,000.00. During January, 1963,
my company merged with and was absorbed by a cor-
poration owned by Philip L. Bornstein, called United
National Labs, Inc., with offices at 99 President Street,
Passaic, New Jersey. Since Mr. Bornstein’s firm did an
annual business of $600,000.00, it was determined by
his accountant, Mr. R. O. Bertoli, that I was entitled to
10 per cent of the shares of the newly merged firms.
This was based solely on the ratio of annual gross
volume of business. The investment of merchandise,
cash and other assets was at about the same ratio. As a
result, I received 10 per cent of the stock of the newly
formed company.
In March, 1963, Mr. Bertoli was instrumental in
bringing a Mr. Alfred B. Averell into the firm who,
26
in turn, brought Douglas B. Westin into the firm with
$100,000.00. The United National Labs., Inc., thereafter
became known as Sonora Electromatics, Inc. Of the 400,-
000 shares authorized by Sonora, it was determined that
I receive 29,000 shares, which I did get. I was elected
a vice president of the firm with approximately a 7
per cent interest.
During May or June, 1963, Sonora moved to 295
Vreeland Avenue, Paterson, New Jersey. Duties were
distributed as follows: Mr. Averell and Mr. Bertoli
were in charge of the fiscal matters; Mr. Bornstein, since
he had many judgments and law suits pending against
himself, decided not to appear as a corporate officer,
but simply as general manager. He was, however in
charge of buying and selling of tubes and transistors.
Mr. Bornstein, Mr. Bertoli and Mr. Averell signed the
checks for the company; I was subordinate to Mr.
Bornstein. Under me, there were two to four salesman
whose function was solely to sell tubes. Also, as part
of the production end of the business, there were eighteen
employees, all of which were prior employees of Mr.
Bornstein’s at United National Labs, Inc. Chester Szpila,
who had been with Bornstein for approximately twelve
years, was foreman. Theresa Hibo, who had been with
Bornstein approximately fourteen years, was forelady.
Pat Lore did the trucking for Bornstein. Approximately
sixteen other individuals did sorting, testing, boxing, et
cetera.
Philip Bornstein’s share of the stock in this company
was held in the name of his wife, Mrs. Bornstein. She
held over 100,000 shares of the new Sonora firm.
Part of my duties as sales manager were to follow
up tentative inquiries and quotations originally initiated
by Mr. Bornstein. There had been correspondence with
a firm in Huntington, Indiana, named Model Engineer-
ing and Manufacturing Corporation in our files before
I joined United National Labs, and Mr. Bornstein asked
me to “follow it up.” I called Model and spoke to Mr.
Norm Tipton, a purchasing agent at Model, and learned
that of six items Mr. Bornstein had quoted on of elec-
tron tubes, Model was prepared to place an order for one
27
of those items, tube type 4X150G. Tipton first wished
to see ten samples of the sort of material we would be
delivering, in order that his engineering department
could satisfy itself as to the quality of what we were
delivering. Accordingly, in June or July, 1963, we sent
ten tubes, type 4X150G, to Model for their evaluation.
These ten tubes were obtained from Arthur Richardson
and Company, Chicago, Illinois a tube distributor. About
two months or so later, we received a form in the mail
from Model attesting to the results of their preliminary
inspection. To the best of my recollection the results
were as follows: 10 4X150G—no code date, no JAN
marking, electrically OK, physically OK, decision: ac-
cepted. —
Mr. Bornstein thereupon called Arthur Richardson and
Company, 608 South Dearborn Street, Chicago, Illinois,
and arranged to purchase from them the amount of
4X150G tubes we would need to complete the Model
purchase order. I think the original order called for
approximately 968 tubes. We purchased the tubes for
$20.00 each. To insure that Richardson would save the
tubes for us alone, Mr. Bornstein sent him a $1,000.00
deposit which was to apply towards the last order of
tubes we bought. As we purchased «hese tubes from
Richardson we were to pay for them on their arrival
at our premises. Shipments to Model, according to the
schedule set forth in their purchase order were to begin
November 1, 1963, and subsequent shipments were to be
made on the Ist of each month thereafter until com-
pletion.
In mid-October, Mr. Bornstein bought sixty tubes from
Richardson, sent them when they arrived to Saxon Labs,
2470 North Jerusalem Road, North Bellmore, Long
Island, New York, to be tested simply for short circuits
or “leakage,” and on receipt of the good tubes back
from Saxon, forwarded them on to Model. This proce-
dure was followed for the first two shipments.
Sometime during the beginning of January, 1964,
I received a telephone call from Model Engineering.
They had asked for Mr. Waxberg, one of our salesmen,
who after listening ciaimed he could not help them and
28
so informed Mr. Bornstein. When Model called again,
Mr. Bornstein did not speak to them, but asked me to
accept the call. I did so. At the other end of the phone
were both Tipton, the purchasing agent, and Bob Smart,
the chief buyer for Model. They asked whether I had
any prior experience with government contracts. I told
them that I had not, whereupon they proceeded to in-
dicate where we had been remiss: the tubes were not
marked JAN, there was no evidence of government
source inspection which would have been indicated by
the presence of an eagle on the packing slip, they were
not properly code dated, (they had to be manufactured
within one year of the date of the sale). Tipton and
Smart suggested that before I get them into any more
“hot water’ I contact the General Testing Labs in
Moonachie, New Jersey, and learn proper procedure
there. I did so and also learned that the testing charges,
in the amount of $15.00 per tube, would be prohibitive
when added to our individual cost. Model called every
day to inquire about our progress, and told us that
they were in danger in incurring severe penalties for
nondelivery, since they had had to send back the first
120 tubes as inadequate. I told them I was making
little or no progress at all.
We had, at this time, a written agreement with
Cetron Electronics, located at Geneva, Illinois, and had
them buy for our account sixty or so pieces of this tube
directly from Eimac, a manufacturer of this tube, at a
cost of $36.50 per tube. We had agreed to sell to
Model the tubes for $32.00 each. We requested the
purchase by Cetron to ease some of the pressure. Sixty
pieces, however, were not enough to take care of the
pressure that Model was putting on us. I, therefore,
in my next conversation with Model offered to cancel
the entire order. Model, however, insisted we perform
according to the obligation the purchase order placed
upon us, and to adhere to the agreement with no can-
cellations. In one of the conversations between Tipton
and myself, Tipton inquired whether we were familiar
with Saxon Labs. We were, since the proprietor Jerry
Francoeur had often done commercial testing for us and
had originally checked the 120 tubes which Model re-
turned to us. Tipton explained that Saxon had done
work for them in the past and was acceptable by their
standards. A call to Saxon verified that he could, in-
deed, provide us with source inspection, but that the
tubes had to be JAN tubes when he received them as
no inspector he worked with could attest to witnessing
a JAN test on a commercial tube. I gave this informa-
tion to Philip Bornstein, who subsequently informed me
“that the matter was taken care of.”
A day or so later, Chester Szpila told me we had
JAN 4X150G’s in the back ready to send to Saxon for
tests. I called Saxon and notified him to be ready to
work around the clock to get these done properly and
promptly since the customer was in a “sweat” for them,
and we commenced shipments to Saxon. Our procedure
was to have our truck driver Pat Lore take the tubes
to Saxon, pick them up a day or so later when Saxon
notified us he had completed the test, and drive over to
Long Island City where Saxon’s “resident inspector”
regularly stayed. This inspector, working for the United
States Government, was Irving Chergin and he was sta-
tioned at Olympic Radio Company, Long Island City.
The inspector would call Saxon and verify that the
packing slips with the serial numbers thereon had ac-
tually been tested to military specifications and then put
his “eagle” on the packing slip. The “eagle” is a rubber
stamp in possession of the United States Government
inspector which, when placed on the shipping document,
denotes that the items being shipped were inspected at
source. Pat Lore then brought the tubes back to Vree-
land Avenue, Paterson, New Jersey, and we made ship-
ments to Model. We continued this procedure until
March 12, 1964, when the premises Sonora occupied at
295 Vreeland Avenue, Paterson, New Jersey, burned
to the ground. This fire destroyed 100 tubes which
were to be shipped to Model on the following day.
New offices were set up at 2185 Lemine Avenue, Fort
Lee, New Jersey. Ten days later, Mr. Bertoli and Mr.
Averell informed Mr. Bornstein and myself that our
services were no longer required.
30
On April 1, 1964, Philip Bornstein and myself opened
up United-Page, Inc., with offices at Glen Rock, New
Jersey. My share of the business was 11 per cent, and
Mr. Bornstein owned, in his wife’s name, the remaining
89 per cent.
Toward the end of April or the beginning of May,
we received a call from Norm Tipton of Model Engineer-
ing. He had, he told me, been trying all over to buy
4X150G’s to complete his order. Saxon indicated later
that Tipton had tried to buy from Unity Electronics,
Elizabeth, New Jersey, and even from Saxon himself.
Saxon suggested that Model contact United-Page. I told
Bornstein what Model wanted and he said, “Take the
order.” He bought 4X150G tubes from various sources.
Tubes were bought from Ted Dames, Arlington, New
Jersey; Eagle Electronics, Berkeley, California; and Sam
Weiner, New York City. These tubes, when we received
them, already bore the JAN designation, and most were
code dated March, 1964; with the word JAN already
on the tube and the code date as late as March, 1964,
two of the requirements needed to meet approval were
already had on the tubes. Obviously, these tubes were a
recent contract termination.
When the first shipment of tubes was supposed to
have been made ready to ship to Saxon, Bornstein
pulled out of his pocket a rubber stamp which when
inked would make the government inspector’s “eagle.”
Bornstein told me that “Tessie found it in her garage.”
Tessis is Theresa Hibo, the forelady. I asked Bornstein
what he intended doing with it, and he pointed out that
the tubes were “obviously” perfect—many of them still
originally sealed as they must have come directly from
Eimac just a short time before—and since he felt that
the firm needed the billing as fast as possible, he did
not propose to waste time going through the test pro-
cedure. Bornstein stated that he would stamp the pack-
ing slips with the “eagle” himself and ship the tubes
directly to Model.
Bornstein again stamped the shipping document on
a second shipment made during June, 1964, to Model.
Subsequently to this second shipment, Model called and
See rr —— —
31
explained that they could wait no longer, but events had
put them so far behind in deliveries they were, at this
time, forced to purchase whatever tubes remained on
the order directly from Eimac. That was the last I
heard from Model.
On August 14, 1964, immediately subsequent to my
interview with Agents David W. Oldham and Eugene
W. Vahey of the Federal Bureau of Investigation re-
garding the tubes sent to Model Engineering, I advised
Philip Bornstein of the nature of the inquiry by the
Federal Bureau of Investigation. At this time I said to
Bornstein, “By the way, how did we manage to ship
JAN tubes from Sonora to Saxon Laboratories for test-
ing?” His answer was, “I had Tessie redo the Richard-
son lot. She put JAN-CIM on the tubes and dated them
so that they fell into the proper period.”
In a sense, this was actually the first I really knew
for a fact what had been accomplished. I simply had
not wanted to know.
On Sunday, August 16, Philip Bornstein telephoned
Jerry Francoeur, owner of Saxon Labs, at his home and
arranged a meeting with Francoeur at the laboratory for
later in the day. He asked Francoeur to do him a favor.
He wanted Francoeur to see his friend the inspector
to see if he would cover up for United-Page, Inc., by
saying that he performed the inspection on the tubes
shipped by United-Page, Inc., to Model. I was present
at this meeting which took place on the premises of
Saxon Labs. On Monday, August 17th, Jerry Francoeur
telephoned us at United-Page, Inc., and in a three-way
conversation told us that Agents of the F.B.I. had al-
ready seen the inspector, gone over his records, and
that he, the inspector, could therefore not do the favor
requested.
On Friday, August 14th, 1964, when the two special
agents had concluded their interviews of Mr. Bornstein
and myself, and had gone, Mr. Bornstein took his ‘eagle’
stamp from his desk drawer, gave it to me, and asked
me to destroy it. I did not do this.
I have read the foregoing statement consisting of
this and eleven other typewritten pages. I have initialed
32
each page and all corrections. This statement is true
to the best of my knowledge.
/s/ Gerald Page
Sworn to and subscribed before me on October 15, 1964
at Paterson, N.J.
/s/ David W. Oldham
Special Agent F.B.L.
Paterson, N.J.
Witness:
/s/ Eugene W. Vahey
Special Agent, F.B.L
Hackensack, N.J.
33
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
Civil No. 1141-67
(Filed May 15, 1968]
REQUEST FOR ADMISSIONS
TO: JACK BALLAN, ESQ.
Attorney for defendant Philip L. Bornstein
14-25 Plaza Road
Fair Lawn, New Jersey 07410
The Plaintiff, the United States of America, hereby
requests the defendant, Philip L. Bornstein, pursuant to
the provisions of Rule 36 of the Federal Rules of Civil
Procedure to admit within ten days after the service
of this Request, for the purpose of the above-entitled
action only, and subject to all pertinent objections to
admissibility which may be interposed at trial, that the
following statements are true:
1. That the defendant, Philip L. Bornstein, in a signed,
sworn statement furnished by him to the Federal Bureau
of Investigation stated that the sale of Electron tubes
by United National Labs, Division of Sonora Electro-
matics, Inc. (United) te Model Engineering and Manvu-
facturing Co., Inc. (Model) was handled by the de
fendant, Gerald Page.
2. That in an indictment dated December 8, 1965,
found by the Grand Jury in and for the District of New
Jersey, sitting at Newark, the defendant, Philip L.
Bornstein, was charged with violation of Title 18 U.S.C.,
Sections 1001, 1002, 371, and 286.
3. That on March 11, 1966, the defendant, Philip L.
Bornstein, entered a plea of guilty before the Honorable
Anthony T. Augelli, United States District Court Judge
to Count II of said indictment which charged as follows:
34
That from on or about January 24, 1964 through
June 3, 1964, in Glen Reck and Paterson, in the State
and District of New Jersey,
PHILIP L. BORNSTEIN;
GERALD PAGE
did knowingly, wilfully, and unlawfully, conspire, con-
federate and combine, and agree with one another, to
commit offenses against the United States as follows:
A) PHILIP L. BORNSTEIN and GERALD PAGE
conspired to cause to be submitted to an agency
of the United States of America, that is, the
Chieago Procurement District of the Depart-
ment of the Army, false and fraudulent state-
ments and representations to material facts in
a matter which was then pending before the
said agency of the United States, contrary to
the provisions of Section 1001, Title 18, U.S.C.
B) PHILIP L. BORNSTEIN and GERALD PAGE
conspired to possess false and forged documents
for the purpose of enabling the Model Manu-
facturing Company to obtain from the United
States of America money under a contract that
the Model Manufacturing Company then had
with the Chicago Procurement District of the
Department of the Army, which contract called
for the use of items which had been falsely
represented by the documents possessed by
PHILIP L. BORNSTEIN and GERALD PAGE,
contrary to the provisions of Section 1002 of
Title 18, U.S.C.
And the Grand Jury further charges:
That in furtherance of the aforesaid conspiracy and
to accomplish the objects thereof, the said defendants
did commit divers overt acts, among which were the
following:
a) On or about January 27, 1964, PHILIP L.
BORNSTEIN and GERALD PAGE shipped In-
voice No. Al1351, accompanied by certain radio
tubes to Model Manufacturing Company.
b) On January 24, 1964, PHILIP L. BORNSTEIN
and GERALD PAGE sent a letter to Model
Manufacturing Company.
In violation of Title 18, U.S.C., Section 371.
7. That pursuant to the aforesaid plea of guilty the
defendant, Philip L. Bornstein, was sentenced by the
Honorable James A. Coolahan, Judge, United States
District Court, to imprisonment for two years, the im-
position of which was suspended, and placed on proba-
tion for two years.
Davip M. SATZ, JR.
United States Attorney
By: /s/ Carolyn E. Arch
CAROLYN E. ARCH
Assistant U.S. Attorney
36
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
Civil No. 1141-67
[Dated May 24, 1968]
ANSWER TO REQUEST FOR ADMISSIONS
TO: DAVID M. SATZ, JR., ESQ.
United States Attorney
Attorney for Plaintiff
Federal Building
Newark, New Jersey 07102
Defendant, GERALD PAGE, denies requests num
bered 1, 2, 3 and 4 of the Request for Admissions
served upon him upon the basis that the statements set
forth therein are taken out of context and do not fully
and avcurately reflect the content of the statements
which the defendant has admitted by not’ answering
request for admissions 38.
/s/ Gerald Page
GERALD PAGE
37
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
Civil No. 1141-67
(Filed April 30, 1969]
ANSWERS TO REQUESTS FOR ADMISSIONS
TO: UNITED STATES ATTORNEY
Federal Building
Newark, New Jersey
The defendant Philip L. Bornstein, hereby forwards
answers to Request for Admissions in the above matter:
1. Defendant has no recoilection of paragraph 1.
2. Defendant admits paragraph 2.
38. Defendant Philip L. Bornstein admits the entry
of a plea of guilty to Count II of an indictment, but
said defendant denies the factual allegations as enumer-
ated in the Request for Admissions.
4. The copy of the Request for Admissions in the
hands of defendant is Nos. 1, 2, 3 and 7. Defendant has
not been served Request Nos. 4, 5 and 6.
/s/ Philip L. Bornstein
PHILIP L. BORNSTEIN
38
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
Civil Action No. 1141-67
[Filed April 13, 1973]
STIPULATION OF FACTS
It is hereby stipulated and agreed, by and between
the plaintiff, United States of America, and the defend-
ants, Philip L. Bornstein and Gerald Page, that the
following statements, which are true, and the documents
listed in the Schedule A, attached hereto and made a
part hereof, which are genuine copies of the originals,
shall, without further proof being adduced, constitute
all of the evidence in the above-entitled action, and that
by so stipulating and agreeing the parties to this ac-
tion do not waive any right to contest, argue, or advance,
to this or any higher Court, the proposition that any
or all such statements or documents are not, as a matter
of law, relevant, pertinent or material to this action.
1. This is a civil action brought by the United States
pursuant to the provisions of §§ 3490 and 54388 of the
Revised Statutes, 12 Stat. 696, Title 31 U.S.C. §§ 231,
233, to recover the forfeitures and double damages
provided by § 3490. This Court has jurisdiction of this
action by virtue of § 3491 of the Revised Statutes, 31
U.S.C. 232, as amended.
2. At all times hereinafter mentioned, defendant
United National Labs, Division of Sonora Electromatics,
Inc. (hereafter United) was and is a corporation of the
State of New Jersey with principal offices of business
at-No. 295 Vreeland Avenue, Paterson, New Jersey,
was engaged in the business of buying and selling elec-
tron tubes, and is within the jurisdiction af this Court.
3. At all times hereinafter mentioned, defendant
Philip L. Bornstein was part owner and General Man-
ager of United and defendant Gerald Page was part
owner, Vice-President and Manager of Sales of defend-
ant United. Defendant United was operated and man-
39
aged by defendants Philip L. Bornstein and Gerald
Page. Defendant Philip L. Bornstein resides at No. 51
Spottswood Road, Glen Rock, New Jersey, and is within
the jurisdiction of this Court. Defendant Gerald Page
resides at No. 140 Dean Street, Glen Rock, New Jersey,
and is within the jurisdiction of this Court.
4. None of the defendants were in the military or
naval forees of the United States, or in the militia or
called into or actually employed in the service of the
United States, during the times involved in this action.
5. At all times hereinafter stated Model Engineering
and Manufacturing Corp., Inc. (hereafter Model), was
and is an Indiana corporation, with principal offices at
Huntington, Indiana, engaged in the business of manu-
facturing and building electronic radio equipment and
radio sets.
6. At all times hereinafter stated the United States
Army Signal Supply Agency and the Chicago Procure-
ment District were divisions of the Department of the
Army, an agency and instrumentality of the plaintiff,
vested with the responsibility for the procurement of
electronic equipment and parts for the Department of
the Army, as authorized by 10 U.S.C. 2304 (public law
1028, 84th Congress).
7. By Supply Contract No. DA-36-039-AMC-01080(E),
(hereafter Contract, Exhibit G-22 herein) dated August
29, 1962, between the United States Signal Supply
Agency and Model, Model undertook to manufacture for
and supply to the Department of the Army Radio Kit
Sets, each of which was to contain the following sub-
items: A radio transmitter kit, a radio receiver kit, a
power supply kit, a radio transformer kit, and a radio
accessory kit. The total dollar volume of the contract
and its supplements was $2,096,583.08.
The component parts list of this contract specified
that Sub-item #1-5-33, to be included in the radio ac-
cessory kits, called for:
“2 ea. Tube, Electron JAN type 4X150G Per Speci-
fications, MIL. E-1 and TSS MIL. E-1, 302 E dated
4/17/57”
40
The Specifications pertinent to JAN type tube 4X150G
provided as follows:
3.7.1.1 “JAN” prefix. The designation of all tubes
procured under this specification shall bear the prefix
“JAN” except that in the case of small tubes (T-6 1%
bulb outline or smaller) the prefix “J” shall be used.
Tubes procured under a contract which either permits
or requires any changes in any of the conditions or re-
quirements of this specification shall not bear the prefix
“JAN” nor any abbreviation thereof. The “JAN” brand
is registered under number 504860 by the United States
Patent Office and shall be used only on tubes which
have passed Government inspection.
3.7.1.2 Qualification code. The qualification code mark-
ing follows the “JAN” prefix. This designation is as-
signed to the manufacturer for use on all tube types
of his manufacture which have passed the qualification
tests and have been approved for inclusion on the Quali-
fied Products List. The code-designating letters shall be
as listed in Publication NAVSHIPS 900,152. The code-
designation shall be used only by the manufacturer to
whom it has been assigned and only as a part of the
designation on tubes manufactured at the plant to which
the qualification approval was granted. In the case of
small tubes (see 3.7.1.1), the manufacturer’s code desig-
nation may be abbreviated by deleting “C” (the in-
dication that the code has been assigned to a commercial
organization in the United States or Canada).
3.7.1.2.1 Tubes not having qualification. Tubes pro-
cured under this specification from a source of supply
for which no qualification approval has been granted,
shall be marked “JAN” followed by the type on the side
wall of the base, or on the envelope of metal, loc-in
tubes, or other glass tubes, or on the bulb of tubes with-
out bases. The prefix “J”, abbreviation for “JAN”,
Shall be used only as specified in 3.7.1.1. The manu-
facturer’s code name which signifies qualification shall
not be used on any part of the tube.
8. The JAN 4X150G electron tubes are not manu-
factured for commercial use; they are manufactured
41
only for military equipment. Surplus or obsolete 4X150G
electron tubes which contain the “JAN” designation and
which were originally manufactured for military equip-
ment, can be used commercially.
9. The only authorized manufacturer of the 4X150G
electron “JAN” tube during all times referred to in
the Complaint and from 1957 to 1964 was Eitel McCul-
lough, Incorporated, of San Carlos, California (hereafter
Eimac). The “JAN” designation on the tubes which
can only be placed thereon by the manufacturer after
they have passed Government source inspection, is an
abbreviation for the Joint Army Navy qualification ap-
proval standard registered by the United States Patent
Office (Exhibit G-24 herein). A tube with “JAN” desig-
nation indicates it has been inspected and approved by
the United States Government at the source (place)
of manufacture, during the manufacturing process.
10. Model, as contractor, made the following certifica-
tion in the Contract:
“The offeror/contractor certifies that the material
offered is new, recently manufactured, has never
been used and is not former surplus of any type.”
11. Due to- the requirements of the equipment specifi-
cations and complete “JAN” tests, as required by the
“JAN” specifications, the use of a commercial tube
which is non-“JAN” branded, or a surplus or obsolete
4X150G tube bearing the “JAN” brand designation, re-
quired prior written approval from the Government Con-
tracting Officer administering the Contract. No such
approval had been given to Model.
12. In 1963, defendants Philip L. Bornstein and
Gerald Page, acting through defendant United, offered
to sell electron tube type 4X150G to Model, which were
required by Model under the Contract, and Mode! or-
dered 120 JAN 4X150G electron tubes from defendants.
13. In December 1963, two shipments of 4X150G
tubes, 120 in number, were sent by the defendants to
Model, but did not have “JAN” stamped on the tubes
which indicated to Model that the tubes were not source
inspected as called for under the Contract. Model re-
42
turned them to the defendants because they were not
source inspected nor properly stamped.
14. Model became concerned that United might not
be able to furnish the required tubes which met the
specifications of the contract and asked that United
confirm in writing that proper tubes could be furnished.
15. By letter dated January 24, 1964, signed by de-
fendant Philip L. Bornstein, Vice-President, United Na-
tional Labs, Model was advised as follows:
“This letter is to stand as affirmation by us that
we are fully equipped and capable to delivery (sic)
any and all electron tubes and semi-conductors on
which we accept purchase orders from you to the
applicable military specifications and government
source inspection supplied as required.”
16. (a) Inherent in the “JAN” concept is a system
of testing procedures, developed by the Government,
which a manufacturer of electronic equipment for Gov-
ernment use, as well as the product he manufactures,
must continuously undergo. Under this system, the Gov-
ernment is assured of the capability, reliability and in-
terchangeability of electronic equipment produced for
its use in Military Equipment.
(b) In order for a manufacturer of electronic equip-
ment to qualify to produce “JAN” branded electron tubes,
he must first pass the following four qualifying tests
conducted by the Government during the Qualifying
Testing period:
1, Environmental Testing—Manufacturer must dem-
onstrate that he can control the environment of his
plant for electronic equipment production;
2. Design Testing—Manufacturer must demonstrate
that he has the engineering capability to develop
and produce high quality electronic equipment, and
develop and produce engineering changes, when
needed ;
3. Production Testing—Manufacturer must demon-
strate his capability to continue to produce, over a
43
sustained period of time, the electronic equipment;
and
4. Life Testing—Manufacturer must demonstrate
that the electronic equipment manufactured by him
can continually perform for the period of time
required in Government Specifications. In the case
of electron tubes, such manufacturer must demon-
strate that it will perform for at least 500 hours.
(ce) After passing the Qualifying Tests, the manu-
facturer becomes qualified to manufacture the electronic
equipment concerned as “JAN” branded. In the case of
electron tubes, the tube type he produces is listed in the
Government’s Qualified Products List, and he is assigned
a Qualification code, also listed in the Qualified Products
List, which designates him as the Qualified Manufacturer
of the particular electron tube.
(d) Thereafter, all electron tubes to be “JAN” brand-
ed by the Qualified Manufacturer must continuously un-
dergo production, life, and design testing during the
manufacturing process. The life test is performed on a
sample basis since this test destroys the tube. The
production test, part of MIL-E-1, could physically be
performed by an independent laboratory.
(e) To assure that electron tubes made by the Quali-
fied Manufacturer are so tested, Government Source In-
spectors are present at the Qualified Manufacturers plant,
in either a resident or visiting capacity, to conduct the
tests while the electron tubes are being produced.
(f) Only after the electron tubes pass all of the tests
—design, life, production—can the Qualified Manufac-
turer imprint the “JAN” designation, followed by his
Qualification Code designation symbol, on them.
(g) During these imprinting procedures, an accept-
ance code date, a four digit number, which must coin-
cide with the year and week of manufacture, is affixed
to the electron tube. For example, the acceptance code
date 6318 indicates that the electron tube was “JAN”
inspected in the 18th week of the year 1963.
(h) As proof of Government Source Inspection of
such “JAN” branded electron tubes, the Government In-
44
spector imprints his “Eagle” acceptance stamp on the
packing slips accompanying the shipment of the tubes,
and under a written certification that the tubes have
been source inspected and have passed all of the re-
quired tests, affixes his signature.
(i) Because of the testing requirements, “JAN” brand-
ed electron tubes are produced only when a specific
order is placed therefor. They are never stocked or kept
on the shelf.
(j) Under the JAN system as a matter of policy,
tubes more than one year old are not JAN tested at
the point of manufacture.
(k) Genuine “JAN” branded electron tubes can be
sold only to the Government or for Government use.
They can be sold either directly to the Government or
to someone who has a Government Contract calling for
their use. They are not sold to tube distributors.
(1) The Qualification code assigned to Eimac for use
on all tube types of its manufacture which have passed
the qualification tests and have been approved for in-
clusion on the Qualified Products List was and continues
to be: CIM.
(m) Eimac’s qualification code—CIM—could only he
used by Eimac on electron tubes manufactured at the
plant to which qualification approval to produce such
electron tubes was granted. An electronic tube “JAN”
branded by Eimac would be marked thusly: “JAN-
CIM”.
(n) Eimae engraved serial numbers on all 4X150G
electron tubes it manufactured. Inherent in the prefix
of each tube serial number, the first two digits, is Eimac’s
internal date-code system from which the year and month
of the manufacture of each electron tube is readily de-
termined.
(o) The serial number code-date prefix is a com-
bination of one letter of the alphabet and one number.
The letter of the alphabet designates the month and the
number designates the year.
The first 12 letters of the alphabet, A through L, in-
clusive, were assigned to January to December, inclusive.
The letter A designates January, the letter B, Febru-
ary, the letter C, March, and so forth.
45
The last digit of each calendar year, numbers 0
through 9, inclusive, is the other digit of the tube serial
number date-code prefix.
(p) During the years 1950-1960, inclusive, Eimac’s
date-code prefix was a letter of the alphabet followed
by a number. For example, a serial number prefixed
AO indicates that the electron tube was manufactured
in January, 1960. A serial number prefixed L9 indi-
cates that the electron tube was manufactured in De-
cember, 1959.
During the years 1960-1970, inclusive, Eimac’s date-
code prefix was a number followed by a letter of the
alphabet. For example, a serial number prefixed 1B
indicates that the electron tube was manufactured in
February, 1961. A serial number prefixed 2C indi-
cates that the electron tube was manufactured in March,
1962.
17. (a) On April 30, 1963, Arthur H. Richardson,
Inc., a distributor of electron tubes and franchised dis-
tributor of Eitel McCullough, Inc. (Eimac), purchased
451 4X150G tubes, which had been placed in termina-
tion inventory due to a design change and which had
never been used, for $15.52 per tube which was their
market price (Exhibit G-44, herein).
(b) In 1963, non obsolete JAN 4X150G tubes had a
market price of $40 per tube.
(c) On May 10, 1963, Gerald Page wrote to Model
advising that United was capable of supplying 945 JAN
4X150G electron tubes for $32 per tube (Exhibit G-33,
herein).
(d) In July, 1963, the defendants purchased 10 4X
150G tubes from Arthur H. Richardson, Inc. and shipped
them to Model for sampling. In September, 1963, Model
sent a form to United which advised them of the follow-
ing facts concerning the 10 4X150G tubes preliminary
inspection:
no code date
no JAN marking
electrically OK
46
physically OK
Decision: accepted
(e) On December 26, 1963, Model issued to United
a Purchase Order for 1008 JAN 4X150G electron tubes
for $32,256 or $32 per tube which called for a regular
monthly delivery of tubes (Exhibit G-26(c), herein).
(f) The defendants knew that the 4X150G tubes they
would sell to Model were for use in the Contract,
although they never saw a copy of the Contract.
(g) In December 1963, the defendants shipped 120
4X150G electron tubes to Model and in early January,
1964, Model returned the tubes as unacceptable because
they were not JAN tubes and had not been government
source inspected.
(h) On January 24, 1964, Philip Bornstein wrote to
Model and advised that United was capable of deliver-
ing all tubes under Model’s Purchase Orders which meet
the applicable military specifications and government
source inspection as required (see paragraph 15 above).
(i) United purchased 380 of the aforesaid 451 4X
150G tubes from Arthur H. Richardson, Inc. for $17.50
per tube under the following invoices, prior to the sale
by United to Model:
(1) Invoice 10149 dated 1/4/64 covering 125 tubes
(Exhibit G-27(a) herein) ;
(2) Invoice 10397 dated 2/17/64 covering 150 tubes
(Exhibit G-27(b) herein) ;
(3) Invoice 10506 dated 3/6/64 covering 103 tubes
(Exhibit G-27(c) herein) ; and
(4) Invoice 09950 dated 11/23/63 covering 2 tubes
(Exhibit G-27(d) herein).
(j) The defendants then affixed or caused to be af-
fixed to the 4X150G tubes which they had in their pos-
session in January 1964 and which they acquired from
Arthur H. Richardson, Inc., the following markings:
(1) The JAN designation;
(2) The Manufacturer’s Qualification Code (CIM) ;
and
47
(3) The acceptance date (6318),
which the defendants knew were false and inaccurate.
(k) From January to March 1964, the defendants
shipped falsely JAN branded 4X150G tubes to Saxon
Laboratories, Inc. in New York for a MIL/E 1 electrical
test, which was performed; the tubes were found op-
erable.
(1) Before shipping any of the JAN branded 4X150G
tubes which had been tested at Saxon Laboratories, Inc.,
the impression of a facsimile of a Government Inspec-
tor’s “Eagle” stamp was affixed on each of the packing
lists (G-1-G-21) at Saxon Laboratories, Inc., by a per-
son or persons other than Philip L. Bornstein or Gerald
Page.
(m) Model paid $32 for each 4X150G tube it received
from United.
(n) The United States removed 442 4X150G electron
tubes from the radio kits it purchased from Model, each
of which contained:
(1) A false JAN designation;
(2) A false Manufacturer. | alification Code
(CIM); and
(3) A false acceptance date (6318).
(o) The cost to the United States in replacing the
442 falsely marked 4X150G electron tubes was $40.82
per tube or a total of $18,042.44 which is subject to
proof by affidavit or voucher.
(p) On May 20 and 27, 1966, Gerald Page and Philip
Bornstein, respectively, plead guilty to Count II of an
Indictment which included two overt acts (Exhibits G-
36, G-35, and G-34, herein).
(q) In November, 1966, Model paid the United States
$18,000 for the Government’s claim relating to the pay-
ment of the 442 falsely branded JAN 4X150G tubes
which are referred to in the Complaint.
18. Model accepted shipments of the 4X150G electron
tubes from the defendants, under the defendants’ cer-
tification referred to in paragraph 23. Accompanying the
shipments of tubes were the following packing lists,
which identified each tube shipped therewith by serial
number, and designated each such tube as “JAN”;
48
PACKING LISTS DATE QUANTITY
A 11351 1/27/64 20
A 11356 1/29/64 18
A 11357 1/29/64 6
A 11355 1/29/64 18
A 11354 1/29/64 18
A 11363 1/30/64 20
A 11364 1/30/64 20
A 11362 1/30/64 20
A 11361 1/30/64 20
A 11360 1/30/64 20
A 11372 2/ 4/64 13
A 11371 2/ 5/64 17
A 11370 2/ 5/64 20
A 11369 2/ 5 64 18
A 12263 2/18/64 20
A 12268 2/18/64 20
A 12262 2/18/64 20
A 12265 2/18/64 20
A 12264 2/18/64 29
A 12260 2/18/64 20
A 12261 2/18/64 20
Each of these packing lists contains the following
reference:
“Gov. Contract No.: DA 36-039-AMC-1080 E”, and
bears the impression of a facsimile of a Government
Inspector’s “Eagle” stamp. These packing lists did not
contain the certification and signature referred to in
paragraph 16(h) when they were received at Model.
The packing lists G-1 through G-21 referred to above
do not reflect separate shipments of the tubes listed
thereon, but rather reflect separate boxes which were
combined for a total of three shipments to Model. The
defendants billed Model for the tubes listed in Exhibits
G-1 through G-21 on three separate invoices and charged
$32 per tube.
_
49
19. The defendants knew that the 4X150G electron
tubes were to be used by Model in a Government Con-
tract.
20. The electron tubes mentioned in paragraph 17
above, together with Richardson Invoices and defend-
ants’ packing lists, issued to Model, containing their serial
numbers, are Exhibits G-la through G-2lt, inclusive,
herein.
21. The United States received 684 4X150G tubes
from Model under the Contract. 442 of these tubes were
improperly JAN branded as described in paragraph 17
(n). 897 of these improperly JAN branded tubes are
identified by serial number as having come from the
defendants. The serial numbers of the remaining 45
improperly JAN branded tubes are unknown and can-
not be directly traced to the defendants.
22. In addition to the packing lists set forth in para-
graph 18 above, Packing List A 11073, Exhibit G-45
herein, for 60 JAN 4X150G electron tubes, at $32.00
per tube was found in the possession of Model in July
1964. Exhibit G-45 does not reference the Contract
number, does not bear the signature of a Government
Source Inspector, and does not refer to any tubes by
serial number.
23. With each shipment of 4X150G electron tubes to
Model, defendants issued, to Model, a “Certificate of
Compliance”. Said “Certificate of Compliance” was
signed: “Gerald Page, Vice-President, United National
Labs”, and read as follows:
“It is hereby certified that all materials used in
the manufacture of parts in the quantity called for on
the subject purchase order received by Model Engineer-
ing and Mfg. Corp. conform to the material and/or
manufacturing specifications as called for on said pur-
chase order.
Physical, Electrical, and/or Chemical test reports are
on file with us or with our suppliers for examination
and indicate conformance with applicable specification
requirements.”
ee
50
24. Model submitted to the United States 35 claims
for payment under the Contract which were designated
as invoices. Each of the 35 invoices of Model included
claims fox payment for JAN 4X1i50G tubes which had
been “JAN” branded by the defendants. The 35 in-
voices covered payment for the entire contract and the
United States paid Model’s 35 invoices with eight Gov-
ernment Vouchers (Exhibit G-23(a) through (h)). The
defendants did not prepare any of the above-mentioned
documents, or have knowledge of the manner in which
the claims of Model were presented.
25. The answers submitted by the United States to
defendant Page’s interrogatories are true, and annexed
hereto are copies of Interrogatories Nos. 20, 21, 22, 23,
Supplemental Interrogatories Nos. 1-4 and all the Gov-
ernment’s answers thereto, together with a letter dated
April 19, 1971 from United States Attorney to Jack
Ballan, Esq.
26. The United States claims that the defendants
are jointly and severally liable for 38 forfeitures, pur-
suant to 31 U.S.C. § 231 et seg. computed as follows:
(a) 35 Model invoices submitted to the United
States each of which incorporated claims for
payment for falsely branded JAN 4X150G
tubes supplied by the defendants ._—=——séa8355
(b) False branding of 442 4X150G tubes by the
ID icteieletmieediia ee oT 1
(c) Affixing an impression of a facsimile of a
Government Source Inspectors Stamp to 21
ARC a al ee 1
(d) The issuance of 21 false Certificates of
Compliance with each shipment = —s—s—é—~i*™2d;
38
51
WILLIAM ROSSMOORE, ESQ.
Attorney for Defendant,
Gerald Page
/s/ William Rossmoore
WILLIAM ROSSMOORE
JACK BALLAN, EsqQ.
Attorney for Defendant,
Philip L. Bornstein
/s/ Jack Ballan
JACK BALLAN
HERBERT J. STERN
United States Attorney
Attorney for Plaintiff,
United States of America
BY: /s/ Carolyn E. Arch
CAROLYN E. ARCH
Assistant U.S. Attorney
BY: /s/ William A. Carpenter, Jr.
WILLIAM E. CARPENTER, JR.
Assistant U.S. Attorney
52
April 19, 1971
Jack Ballan, Esquire
14-25 Plaza Road
Fair Lawn, New Jersey 07410
Re: United States vs. Philip L. Bornstein,
et als., Civil Action No. 1141-67
Dear Mr. Ballan:
Reference is made to your letter dated April 15, 1971.
Please be advised that by deleting item No. 49, page
h, from the Government trial memorandum, the Govern-
ment is not acknowledging that it suffered no actual fi-
nancial loss. The same was deleted because, as a matter
of fact, the tubes were not replaced, but retained in
storage at the various depots to which the radio sets
in which they were included were shipped.
Since the Government actually paid Model the full
contract price for the radio sets of which the tubes com-
plained of were a component part, so much of the total
payment to Model that is allocable to those components
of the sets, which did not meet the specifications, to wit,
442 tubes, at $40.82, or $18,042.44, is the amount of
the single damages claimed. See Faulk ¥. United States,
198 F.2d 169 (5th Cir. 1952), cited at page 28 of the
Government’s trial memorandum.
Thus, it is the Government’s contention that since it
paid for 442 tubes which did not meet its specifications
and for which it would not have paid but for the fraud
of the defendants the Government is entitled to recover
double the amount of the single damages, or $36,084.88.
Stated simply the Government was caused, by the de-
fendants’ fraud to pay for surplus tubes which did not
53
meet the contract specifications, for which it had no use,
and which it did not order.
Very truly yours,
HERBERT J. STERN
United States Attorney
By: CAROLYN E. ARCH
Assistant U.S. Attorney
ce: Honorable Robert Shaw
Judge, United States District Court
Post Office Building
Newark, New Jersey
William Rossmoore, Esq.
c/o Stavis, Richardson,
Koenigsberg & Rossmoore, Esqs.
744 Broad Street
Newark, New Jersey 07102
54
20. As to each and every tube alleged to be defective
20.
in Paragraph 17 of the complaint, state whether
or not any tests were performed by anyone on
any of said tubes and if the answer is in the
affirmative, state the time, date, and place that
each such test was performed, the name and ad-
dress of the person making each such test, and
set forth in detail the nature of the test per-
formed and the results thereof.
ANSWER: Immediately prior to 1 July 1964, in-
spectors at Tobyhanna Army Depot, Lexington-
Blue Grass Army Depot and Sacramento Army
Depot withdrew tubes purporting to be JAN 4X
150G from shipments received from Model. The
tube serial numbers were then referred to Eitel-
McCullough, the authorized manufacturer, to de-
termine if they were genuine JAN tubes and of
recent manufacture. This firm, on 17 July 1964,
reported results of a search of their records against
the serial numbers furnished, which in brief show-
ed that the quantity alleged were not in fact
genuine JAN tubes. The inspector who withdrew
the tubes and recorded the serial numbers at
Tobyhanna Army Depot was Gabriel P. Unis,
whose present address is reported to be 3852
Sinclair Lane, Baltimore, Maryland 212138. Those
who did the same at Lexington-Blue Grass Army
Depot were:
Roy S. Harney, Sr.
744 Berry Lane
Lexington, Kentucky 40502
James A. Brown
2905 Southview
Lexington, Kentucky 40502
Personnel participating in the same effort at Sac-
ramento Army Depot were:
James F. Van Wicklin
8236 Citidel Way
Sacramento, California 95826
21.
55
John F. Buechner
3120 Adams Road
Sacramento, California 95825
Richard L. Traux
8984 Rosetta Circle
Sacramento, Calif. 95826
Joseph S. Starzec
6271 Greenhaven Drive
Sacramento, Calif. 95831
Edward S. Hamakawa
1725 Sherwood Avenue
Sacramento, Calif. 95822
John E. Russell
1062 56th Street
Sacramento, Calif. 95819
Joseph A. Gilmette (No longer employed by Sac-
ramento Army Depot) Address unknown
Eitel-McCullough, now a Division of Varian, re-
ported that the following personnel checked their
records for the purpose indicated:
Mr. I. H. Encoyand
DCASR-San Francisco
866 Malcolm Road
Burlingame, California 94010
Mr. John D. Quackenbush
540 Summit Spring Road
Woodside, California 94062
Mr. Carl M. Miloslavich
309 De Anza Avenue
San Carlos 94070
As to each and every tube alleged to be defective
in Paragraph 17 of the complaint, state in detail
the nature of the said defect and describe in
detail how the said defect was determined, giving
the name and address of each person who as-
56
certained the said defect and the time, date, and
place when the said defect was ascertained.
ANSWER: See answer to question 20.
22. Set forth in detail the basis on which it is claimed
that the plaintiff was damaged in the amount of
$40.82 for each defective tube, as alleged in Para-
graph 21 of the complaint.
ANSWER: The basis for the claim is fully set forth
in Paragraph 21 of the complaint. Due to the acts of
the defendants in dealing with Model, the Government
did not receive 442 tubes specified in the contract and
is entitled to the value thereof at $40.82 each.
23. As to each and every defective tube as alleged
in the complaint, state what disposition was made
of the same from the time of the receipt of the
same by Model to the present and as to each and
every such tube state the present physical where-
abouts of the same or the time, date, and place
of the last known physical whereabouts of the
same.
ANSWER: The tubes taken from Model shipments and
found not to be genuine, were ordered to be segregated
and held in storage at the following Army depots:
Tobyhanna, Tobyhanna, Pa.; Lexington-Blue Grass, Lex-
ington, Kentucky; and Sacramento, Sacramento, Calif.
They are presently in storage at the points indicated.
57
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
Civil No. 1141-67
UNITED STATES OF AMERICA, PLAINTIFF
v8.
PHILIP L. BORNSTEIN, GERALD PAGE, AND UNITED Na-
TIONAL LABS, DIVISION OF SONORA ELECTROMATICS,
INC., DEFENDANTS
SUPPLEMENTAL INTERROGATORIES
TO: DAVID M. SATZ, JR., ESQ.
United States Attorney
Attorney for Plaintiff
Federal Building
Newark, New Jersey 07102
SIR:
PLEASE TAKE NOTICE that the defendant, Gerald
Page requires of the plaintiff answers under oath to the
following supplemental interrogatories within the time
prescribed by law:
1. As to each and every tube alleged to be defective
in paragraph 17 of the complaint, state whether or not
the plaintiff claims that any such tube had physical,
electronic, performance, or similar characteristics or func-
tions different from those required to be delivered to it
under its contract with Model Engineering and Manv-
facturing Company, and if so, list each such tube, de-
scribe in detail the nature of the difference and give the
date, place and name and address of any person per-
forming any tests disclosing such differences.
The plaintiff herein does not claim that each tube was
defective by reason of different physical, electronic, per-
formance or similar characteristics from those required
to be delivered to it under its contract with Model
58
Engineering and Manufacturing Company. The claim
is based upon the facts that the required tubes had to
be of recent manufacture, not surplus of any type, in-
spected at the source by a Government inspector, con-
form to all material and manufacturing specifications,
and bear a genuine Government stamp indicating com-
pliance with all requirements of prior testing and ac-
ceptance as genuine “JAN” tubes.
It was ascertained at the points where Model made
delivery of its completed products, through various media
by qualified persons, and by comparison of the serial
numbers of the tubes furnished with the records of the
original manufacturer, as fully detailed in the answer to
question 20 of the prior interrogatory, that the tubes
furnished were manufacturer’s surplus, not of recent
manufacture, did not conform to the required specifica-
tions, and did not bear the genuine stamp indicating
that they had been Government inspected at the source.
Details of the manner in which the furnished tubes were
made to simulate the genuine, specified product are
fully outlined in the statement given by defendant Gerald
Page to the FBI originally and subsequently admitted
by said defendant in this current action.
As indicated previously, the names of persons who
made the tests, their addresses, the places at which tests
were made and required searches for the Government are
fully disclosed in the answer to question 20, of the prior
interrogatory.
ANSWER TO SUPPLEMENTAL INTERROGATORY
NO. 1.
59
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
Civil Action No. 1141-67
UNITED STATES OF AMERICA, PLAINTIFF
v8.
PHILIP L. BORNSTEIN, GERALD PAGE, AND UNITED Na-
TIONAL LABS, DIVISION OF SONORA ELECTROMATICS,
INC., DEFENDANTS
SUPPLEMENTAL ANSWER TO
INTERROGATORIES
TO: STAVIS, RICHARDSON, KOENIGSBERG and
ROSSMORE, ESQ.
Attorneys for Defendant Gerald Page
744 Broad Street
Newark, New Jersey
SIRS:
The Plaintiff, United States of America, hereby sup-
plements its answers to interrogatories as follows:
A. With respect to the meaning intended by Plaintiff
in its characterization of tubes as “defective” and “obso-
lete”’:
ANSWER
Please refer to Plaintiff's answer to supplemental in-
terrogatory No. 1 of Defendant Gerald Page, filed and
served on March 21, 1969, wherein Plaintiff sets forth
in detail its meaning of defective and obsolete tubes.
The plaintiff, United States of America, hereby an-
swers supplemental interrogatory No. 2 as follows:
2. As to each tube taken from Model shipments as
alleged in the answer to original interrogatory +23,
state whether or not such tube was replaced, and if so,
the date of replacement, the source of the replacement,
60
giving the name and address of the supplier thereof, and
the consideration, if any, paid therefore and the name
and address of the person to whom such consideration
was paid.
2. Answer: None of the tubes taken from Model ship-
ments as set forth in answer to original interrogatory
No. 23 were replaced.
3. State whether or not any claim has been made by
the plaintiff against Model Engineering and Manufactur-
ing Company for the tubes alleged to be defective, and
if so, state in detail the disposition of such claim.
Claim was made against Model Engineering and
Manufacturing Company for the tubes alleged to be de-
fective. The attached Exhibits #1, 2, 3, 4 and 5, state
in detail the disposition of the claim.
4. State whether the plaintiff has received any pay-
ment or other consideration from Model Engineering
for the tubes alleged in the complaint to be defective
and if so, state the nature or amount of such considera-
tion and the dates of payment thereof.
The plaintiff received the sum of $18,000.00 from
Model Engineering in the form of a deduction from
Model invoices, per voucher #121073, 13 December 1966,
in accordance with Exhibits listed under Answer #3,
and copy of voucher attached hereto marked Exhibit +6.
Answered March 21, 1969
STAVIS, RICHARDSON, KOENIGSBERG
& ROSSMOORE
Attorneys for Defendant, Page
By /s/ William Rossmoore
WILLIAM ROSSMOORE
Davip M. SATz, JR.
United States Attorney
By: /s/ Carolyn E. Arch
CAROLYN E. ARCH
Assistant U.S. Attorney
DATED: August 22, 1968.
61
EXHIBIT #1
MEMCOR INC.
Huntington, Indiana 46750
Telephone 219—356-4300
1 December 1966
U.S. Army Electronics Command
225 South 18th Street
Philadelphia, Pennsylvania 19103
Attention: Mr. Lewis B. Moyer
Contracting Officer
Subject: Contract DA-36-039-AMC-01080(E)
P.O. 15263-PP-63-A1l-51 (OA-1387 GRC Radio
Sets) USAECOM Payment Withholding of
MEMCOR Invoices Totalling $28,317.20.
Reference: 1) MEMCOR Letter (C. Horvath) dated 31
May 1966 to USAECOM (Mr. L. B.
Moyer).
2) USAECOM Letter AMSEL-PP/P-CP-E3
(Mr. L. B. Moyer) dated 9 June 1966
to MEMCOR (Mr. C. Horvath)
3) MEMCOR Letter (C. Horvath) dated 19
August 1966 to USAECOM (Mr. L. B.
Moyer).
Gentlemen:
Confirming a telephone conversation between Mr. L.B.
Moyer, USAECOM and Mr. C. Horvath, MEMCOR, Inc.,
on 1 December 1966, enclosed are two (2) copies of a
letter dated 23 November 1966 from the United States
Department of Justice accepting MEMCOR’s proposal
in the amount of $18,000.00 in settlement of the Govern-
ment’s claim relative to the subject contract.
As discussed with Mr. Moyer, there now remains pay-
ment to MEMCOR in the sum of $10,317.20 under the
terms of the settlement thereby completing all required
contractual actions under the contract.
62
MEMCOR is presently experiencing a shortage of work-
ing capital and your assistance in expediting early pay-
ment of these monies is sincerely appreciated.
Please advise should further action be required by
MEMCOR to assist you in your efforts.
Very truly yours,
/s/ C. Horvath
C. HORVATH
Director of Contracts
ec: C.W. Payne, A.C.O.
c/o MEMCOR, Ince.
63
EXHIBIT #2
November 3, 1966
United States Attorney
Federal Building
Fort Wayne, Indiana
Sir:
Re: Model Engineering & Manufacturing Co.
(Memeor, Incorporated)
In behalf of the above captioned client, we offer the sum
of Eighteen Thousand ($18,000.00) Dollars in full settle-
ment for the Government claim as reported to you in
our telephone conversation of which this is in confirma-
tion.
Respectfully,
CAMPBELL & LEMASTER
ALEXANDER CAMPBELL
AC/tk
ec. Hon. Frederick Curloy
Fraud Section
U.S. Department of Justice
Washington, D.C.
{See letter dated 11-23-66)
64
EXHIBIT #3
UNITED STATES DEPARTMENT OF JUSTICE
Washington, D.C. 20530
{Emblem ]
Nov. 23, 1966
Address Reply to the
Division Indicated
& Refer to Initials and Number
SS :DJTItus :jep
46-26S-217
Alexander M. Campbell, Esquire
Campbell and LeMaster
Lincoln Tower
Fort Wayne, Indiana 46802
Re: Model Engineering and Manufacturing
Corporation, now known as Memecor, Inc.
Dear Mr. Campbell:
This has reference to your letters of November 3, 1966
and November 14, 1966, addressed to Mr. Alfred W.
Moellering, United States Attorney, Fort Wayne, Indi-
ana, copies of which you furnished to us, submitting an
offer in the sum of $18,000 on behalf of Model Engineer-
ing and Manufacturing Company, Huntington, Indiana,
now known as Memcor, Inc., in settlement of the Gov-
ernment’s claim against that firm. The proposal con-
templates that payment of the compromise amount will
be made by a setoff against other funds now being with-
held from your client by the Department of the Army
under other contracts.
Our claim against Model arose through the failure of
that company to furnish electron tubes type 4X150G to
the Government in accordance with the specifications set
forth in Contract No. DA-36-039-AMC-01080 (E) dated
August 29, 1962, awarded by the United States Army
;
’
/
’
’
;
65
Signal Supply Agency, Philadelphia, Pennsylvania. The
damages were computed to total $18,042.44 based on the
receipt by the Department of the Army of 442 non-
conforming and surplus tubes.
We accept your offer. Accordingly, we are by letter
of even date so notifying the Department of the Army
and requesting that it deduct the amount of the proposal
from the funds now being withheld from your client.
The United States Attorney, Fort Wayne, Indiana,
through his receipt of a copy of this letter, is hereby
authorized to close his file in the matter.
Yours very truly,
BAREFOOT SANDERS
Assistant Attorney General
Civil Division
By: /s/ Frederick N. Curley
FREDERICK N. CURLEY
Chief, Frauds Section
ec: Mr. Alfred Moellering
United States Attorney
Fort Wayne, Indiana 46801
Department of the Army
Washington, D. C. 20310
Att: Judge Advocate General
66
EXHIBIT #4
November 14, 1966
Hon. Alfred W. Moellering
U.S. Attorney
Federal Building
Fort Wayne, Indiana
Re: U.S. Army Contract
D A 36-039-AMC 01188-(E)
O-A 1387/GRC
Radio Set Group, Vacuum Tube
Sir:
The U.S. Army is hereby authorized to deduct Eighteen
Thousand ($18,000.00) Dollars from the approximate
Twenty Eight Thousand ($28,000.00) Dollars now being
held by the U.S. Army under the above subject contract.
Respectfully,
CAMPBELL & LEMASTER
ALEXANDER CAMPBELL
Counsel for MEMcorR, INC.
(Model Engineering &
Manufacturing Co.)
AC/tk
c.c. Hon. Fred Curley
Colonel Orin Jones
George Manis, President
Memcor, Inc.
Le tee seen mel
67
EXHIBIT #5
NNNNEZCZCMLD301RTTU JAW RUEONFA0631
3362136- UUUU-RUEOAMA.
ZUR UUUUU
N 022131Z DEC 66
FM CG USAMC WASH DC
TO CG USA ELECTRONICS COMMAND FT MON-
MOUTH NJ
BT
[Illegible] AMC-48776. FR. AMCGC-S FOR CH
COUNSEL
SUBJECT: MEMCOR, INC.
THE FOLLOWING IS THE TEXT OF DEPART-
MENT OF JUSTICE LETTER DATED 23 NOVEM-
BER, 1966:
“THIS HAS REFERENCE TO YOUR LETTER OF
NOVEMBER 10, 1966, RECOMMENDING ACCEPT-
ANCE OF THE OFFER TOTALING $18,000 SUB-
MITTED IN COMPROMISE OF THE GOVERN-
MENT’S CLAIM AGAINST THE SUBJECT FIRM.
THE PROPOSAL CONTEMPLATES THAT PAY-
MENT OF THE SETTLEMENT AMOUNT WILL BE
MADE THROUGH A SETOFF AGAINST FUNDS IN
THE SUM OF $28,317.20 NOW BEING WITHHELD
BY YOUR DEPARTMENT FROM THE SUBJECT
CONTRACTOR.
“PLEASE BE ADVISED THAT WE HAVE AC-
CEPTED THE TENDERED OFFER. ACCORDINGLY,
IT WOULD BE APPRECIATED IF YOU WILL
DEDUCT THE AMOUNT THEREOF FROM THE
WITHHELD FUNDS AND NOTIFY US WHEN THIS
SETOFF HAS BEEN MADE.
“THE UNITED STATES ATTORNEY, FORT
WAYNE, INDIANA, IS BEING AUTHORIZED TO
CLOSE HIS FILE SO FAR AS CONCERNS THE
GOVERN-
68
PAGE 2 RUEOHFA6631 UNCLAS
MENT’S CLAIM AGAINST THE MODEL FIRM.”
2. IN VIEW OF THE PRECARIOUS FINANCIAL
CONDITION OF SUBJECT CORPORATION RE-
QUEST PROMPT COMPLIANCE WITH JUSTICE
DEPARTMENT SETTLEMENT AS OUTLINED
ABOVE AND REPLY BY TWX WHEN ACTION
HAS BEEN TAKEN AS REQUESTED.
ET
NNNNR
|
|
|
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71
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
Civil No. 1141-67
UNITED STATES OF AMERICA, PLAINTIFF
—vs—
PHILIP L. BORNSTEIN, ET AL, DEFENDANTS
SCHEDULE A
GOVERNMENT’S LIST OF EXHIBITS
NO. DESCRIPTION OF EXHIBIT
G-1 United Packing List No. A 11351
G-1(a) Tube 4X150G—SN 1C-16972
G-1(b) Tube 4X150G—SN 1B-38157
G-1(c) Tube 4X150G—SN 1C-45676
G-1(d) Tube 4X150G—-SN 1C-20586
G-1(e) Tube 4X150G—SN 1G-32008
G-1(f) Tube 4X150G—SN 1C-37453
G-1(g) Tube 4X150G—SN 1¥-13259
G-1(h) Tube 4X150G—-SN 1C-21304
G-1(i) Tube 4X150G—SN 1D-12571
G-1(j) Tube 4X150G—SN ID-04460
G-1(k) Tube 4X150G—SN 1F-22625
G-1(1) Tube 4X150G—SN 1C-16977
G-1(m) Tube 4X150G—SN 1C-28057
G-1(n) Tube 4X150G—-SN 1B-36135
G-1(0) Tube 4X150G—SN 1D-04364
G-1(p) Tube 4X150G—SN 1F-11142
G-1(q) Tube 4X150G—SN 1D-04323
G-1(r) Tube 4Xi150G—SN 1D-03999
G-1(s) Tube 4X150G—SN 1C-13420
G-1(t) Tube 4X150G—-SN 1F-47216
G-2 United Packing List No. A 11354
G-2(a) Tube 4X150G—SN 1A-09209
72
NO.
DESCRIPTION OF EXHIBIT
G-2(b)
G-2(c)
G-2(d)
G-2(e)
G-2(f)
G-2(g)
G-2(h)
G-2(i)
G-2(j)
G-2(k)
G-2(1)
G-2(m)
G-2(n)
G-2(0)
G-2(p)
G-2(q)
G-2(r)
G-3
G-3(a)
G-3(b)
G-3(c)
G-3(d)
G-3(e)
G-3(f)
G-3(g)
G-3(h)
G-3(i)
G-3(j)
G-3 (k)
G-3(1)
G-2 (m)
G-3(n)
G-3(0)
G-3(p)
G-3(q)
G-3(r)
G-4
G-4(a)
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—-SN
Tube 4X150G—SN
Tube 4X150G—-SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—-SN
United Packing List No. A 11355
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
1D-20008
1H-05366
1C-27970
BO-39921
11-59628
1B-11125
1D-04600
1C-37490
2B-27361
1F-23746
1F-36686
1F-22929
1C-22299
1C-37585
J9-22904
21-09008
21-08307
L9-05282
1B-10427
1B-29512
1C-29454
1B-10565
2C-32202
2H-16724
BO-2¢ 203
2G-24061
Tube 4X150G—SN 1C-37830
Tube 4X150G—-SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—-SN
1 F-04349
1H-04767
21-07867
1C-37516
1C-10804
2H-16976
21-16383
Tube 4X150G—SN 2H-13895
United Packing List No. A 11356
Tube 4X150G—SN
21-13406
73
DESCRIPTION OF EXHIBIT
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—-SN
Tube 4X150G—-SN
Tube 4X150G—SN
Tube 4X150G—-SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—-SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4¥150G—-SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
United Packing List No. A 11357
Tube 4X150G—-SN
Tube 4X150G—-SN
17-15664
2H-13682
BO-40069
DO-16655
1J-12551
1C-11282
1C-28145
2H-15202
2F-13192
1H-55380
DO-11641
21-08632
2G-23679
L9-42428
1A-10293
AO-22382
21-06542
21-22312
DO-23703
P/L 11357 delineating tube 4X150G SN DO-23703
P/L A 11357 delineating tube 4X150G SN KO-23979
P/L A 11357 delineating tube 4X150G SN DO-0042
Tube 4X150G—SN J9-16341
United Packing List No. 11356
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—-SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—-SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
Tube 4X150G—SN
L9-28972
17-01524
L9-21255
1C-29196
1C-21216
1B-38163
1C-10824
1C-29015
1C-13748
1C-28937
DO-16634
FO-19782
AO-16346
74
NO. DESCRIPTION OF EXHIBIT
G-6(n) Tube 4X150G—SN 1C-37552
G-6(0) Tube 4X150G—SN 1C-37540
G-6(p) Tube 4X150G—SN 1C-29186
G-6(q) P/L delienating tube 4X150G—SN 1B-13067
G-6(r) Tube 4X150G—SN 1C-10396
G-6(s) Tube 4X150G—SN 1C-28941
G-6(t) Tube 4X150G—SN 1C-13729
G-7 United Packing List No. A 11361
G-7(a) Tube 4X150G—SN 1D-05022
G-7(b) Tube 4X150G—SN 1C-18414
G-7(c) Tube 4X150G—SN 1C-29347
G-7(d) Tube 4X150G—SN 1E-29495
G-7(e) Tube 4X150G—SN 1C-21543
G-7(f) Tube 4X150G—SN 1B-10544
G-7(g) Tube 4X150G—SN 1C-29529
G-7(h) Tube 4X150G—SN 1C-37691
G-7(i) Tube 4X150G—SN 1D-12617
G-7(j) Tube 4X150G—SN 1C-29283
G-7 (k) Tube 4X150G—-SN 1F-11522
G-7(1) Tube 4X150G—SN 1C-11424
G-7(m) Tube 4X150G—SN 1D-03180
G-7(n) Tube 4X150G—SN 1H-07858
G-7(0) Tube 4X150G—SN 10-32253
G-7(p) Tube 4X150G—SN 1C-29116
G-7(q) Tube 4X150G—SN 1C-37862
G-7(r) Tube 4X150G—SN 1C-29016
G-7(s) Tube 4X150G—SN 1D-24781
G-7(t) Tube 4X150G—SN 1C-37854
G-8 United Packing List No. A 11362
G-8(a) Tube 4X150G—-SN 1D-12220
G-8(b) Tube 4X150G—SN 1C-37558
G-8(c) Tube 4X150G—SN 1C-28985
G-8(d) Tube 4X150G—SN 1C-29628
G-8(e) Tube 4X150G—SN 1C-17185
G-8(f) Tube 4X150G—SN EO-24488
G-8(g) Tube 4X150G—SN L9-23934
G-8(h) Tube 4X150G—SN 1E-12748
G-8 (i)
Tube 4X150G—SN DO-11579
75
NO. DESCRIPTION OF EXHIBIT
G-8(j) Tube 4X150G—SN I7-09700
G-8(k) Tube 4X150G—SN 1C-13442
G-8 (1) Tube 4X150G—SN 1C-13672
G-8(m) Tube 4X150G—SN 1C-28062
G-8 (n) Tube 4X150G—SN 1C-17100
G-8(0) Tube 4X150G—SN 1C-46707
G-8(p) Tube 4X150G—SN FO-32384
G-8(q) Tube 4X150G—SN I7-15753
G-8(r) Tube 4X150G—SN K9-38084
G-8(s) Tube 4X150G—SN K9-38080
G-8(t) Tube 4X150G—SN BO-29205
G-9 United Packing List No. A 11363
G-9(a) Tube 4X150G—SN H7-17449
G-9(b) Tube 4X150G—SN DO-20794
G-9(c) Tube 4X150G—SN F8-06811
G-9(d) Tube 4X150G—SN I7-09712
G-9(e) P/L A 11363 delineating tube 4X150G SN 1(C-43231
G-9(f) Tube 4X150G—SN J9-24541
G-9(g) Tube 4X150G—SN 1G-35768
G-9(h) Tube 4X150G—SN 1F-13747
G-9(i) Tube 4X150G—SN CO-05318
G-9(j) P/L delineating tube 4X150G—SN F8-14582
G-9(k) Tube 4X150G—SN DO-14714
G-9(1) Tube 4X150G—SN 1C-16913
G-9(m) Tube 4X150G—SN BO-31128
G-9(n) Tube 4X150G—SN 1G-22374
G-9 (0) Tube 4X150G—SN 1D-04828
G-9 p) Tube 4X150G—SN D9-06036
G-9(q) Tube 4X150G—SN EO-23862
G-9(r) Tube 4X150G—SN BO-33622
G-9(s) Tube 4X150G—SN J9-16667
G-9(t) Tube 4X150G—SN AO-16444
G-10 United Packing List No. A 11364
G-10(a) Tube 4X150G—SN J9-23199
G-10(b) Tube 4X150G—SN E7-05811
G-10(c) Tube 4X150G—SN I17-15712
G-10(d) Tube 4X150G—SN C8-13118
G-10(e) Tube 4X150G—SN I7-01429
76
NO. DESCRIPTION OF EXHIBIT
G-10(f) Tube 4X150G—SN EO-16345
G-10(g) Tube 4X150G—SN L9-24115
G-10(h) Tube 4X150G—SN G8-18875
G-10(i) Tube 4X150G—SN L9-24256
G-10(j) Tube 4X150G—SN AO-16348
G-10(k) Tube 4X150G—SN I7-04620
G-10(1) P/L delineating tube 4X150G—SN E7-06888
G-10(m) Tube 4X150G—SN CT7-07306
G-10(n) Tube 4X150G—SN K9-44371
G-10(0) Tube 4X150G—SN AO-25206
G-10(p) Tube 4X150G—SN H7-06827
G-10(q) Tube 4X150G—SN BO-31131
G-10(r) Tube 4X150G—SN FO-31486
G-10(s) Tube 4X150G—SN I7-15730
G-10(t) Tube 4X150G—SN G7-14349
G-11 United Packing List No. A 11369
G-11(a) Tube 4X150G—SN 1D-03986
G-11(b) Tube 4X150G—SN 1C-29526
G-11(c) Tube 4X150G—SN GO-26880
G-11(d) Tube 4X150G—SN 1H-50193
G-11(e) Tube 4X150G—SN 1C-29864
G-11(f) Tube 4X150G—SN 2D-25248
G-11(g) Tube 4X150G—SN 2H-13588
G-11(h) Tube 4X150G—SN K9-38077
G-11(i) Tube 4X150G—SN 2I-08029
G-11(j) Tube 4X150G—SN 1C-21408
G-11(k) Tube 4X150G—SN 1C-13584
G-11(1) P/L delineating tube 4X150G—SN 1B-36464
G-11(m) Tube 4X150G—SN 1C-16996
G-11(n) Tube 4X150G—SN 2]-07986
G-11 (0) Tube 4X150G—SN 2G-18332
G-11(p) Tube 4X150G—SN 2B-24426
G-11(q) Tube 4X150G—SN 2H-13121
G-11(r) Tube 4X150G—SN 2A-11984
G-12 United Packing List No. A 11370
G-12(a) Tube 4X150G—SN 2H-16934
G-12(b) Tube 4X150G—SN K9-42463
G-12(c) Tube 4X150G—SN 2F-20919
77
NO. DESCRIPTION OF EXHIBIT
G-12(d) Tube 4X150G—SN 2A-12614
G-12(e) Tube 4X150G—SN 2F-15200
G-12(f) Tube 4X150G—SN 2I-17322
G-12(g) Tube 4X150G—SN 2I-17495
G-12(h) Tube 4X150G—SN 2I-08965
G-12(i) Tube 4X150G—SN 2D-10886
G-12(j) Tube ‘X150G—SN 2G-23864
G-12(k) Tube 4X150G—SN 2A-09665
G-12(1) Tube 4X150G—SN 2H-16782
G-12(m) Tube 4X150G—-SN K9-39870
G-12(n) Tube 4X150G—SN 2A-09562
G-12(0) Tube 4X150G—SN 2B-58783
G-12(p) Tube 4X150G—SN 2I-08279
G-12(q) Tube 4X150G—SN 2G-24037
G-12(r) Tube 4X150G—SN 2H-12607
G-12(s) Tube 4X150G—SN 2F-16246
G-12(t) Tube 4X150G—SN K9-42462
G-13 United Packing List No. A 11371
G-13(a) Tube 4X150G—SN 1L-23200
G-13(b) P/L delineating tube 4X150G—SN K9-38063
G-13(c) Tube 4X150G—SN 2H-16835
G-13(d) Tube 4X150G—SN 2F-35032
G-13(e) Tube 4X150G—SN 2B-25202
G-13(f) Tube 4X150G—SN DO-14637
G-13(g) Tube 4X150G—SN K9-38069
G-13 (h) Tube 4X150G—SN 2D-19310
G-13(i) Tube 4X150G—SN 2C-26366
G-13(j) Tube 4X150G—SN 1J-51849
G-13(k) Tube 4X150G—SN 2H-10989
G-13(1) Tube 4X150G—SN 2I-13772
G-13(m) Tube 4X150G—SN 1K-18565
G-13(n) Tube 4X150G—SN 2I-09914
G-13(0) Tube 4X150G—SN 21-09194
G-13(p) Tube 4X150G—SN 2I-13714
G-13(q) Tube 4X150G—SN 2F-38479
G-14 United Packing List No. A 11372
G-14(a) Tube 4X150G—SN 2F-45733
G-14(b) Tube 4X150G—SN 2I-14797
Se
78
NO. DESCRIPTION OF EXHIBIT
G-14(c) Tube 4X150G—SN 1J-13818
G-14(d) Tube 4X150G—SN 2F-34960
G-14(e) Tube 4X150G—SN 2C-28834
G-14(f) Tube 4X150G—SN 1K-21701
G-14(g) Tube 4X150G—SN 1L-42953
G-14(h) Tube 4X150G—SN 21-14798
G-14(i) Tube 4X150G—SN 2I1-08549
G-14(j) Tube 4X150G—SN 2H-12285
G-14(k) Tube 4X150G—SN 2D-20803
G-14(1) Tube 4X150G—SN 2A-12373
G-14(m) Tube 4X150G—SN 2B-24110
G-15 United Packing List No. A 12260
G-15(a) Tube 4X150G—SN 1C-22284
G-15(b) Tube 4X150G—SN 1L-21336
G-15(c) Tube 4X150G—SN 1K-12055
G-15(d) Tube 4X150G—SN 1L-10878
G-15(e) Tube 4X150G—-SN 1B-37399
G-15(f) Tube 4X150G—SN 1D-04802
G-15(g) Tube 4X150G—SN 1G-45820
G-15(h) Tube 4X150G—SN 1D-12293
G-15(i) Tube 4X150G—SN 1D-12528
G-15(j) Tube 4X150G—SN 1C-29302
G-15(k) Tube 4X150G—SN 2E-11985
G-15(1) Tube 4X150G—SN 1D-10943
G-15(m) P/L—Inv. delineating tube 4X150G SN 1C-29388
G-15(n) Tube 4X150G—SN 11-52768
G-15 (0) P/L—Inv. delineating tube 4X150G SN 1C-29384
G-15(p) Tube 4X150G—SN 1D-12402
G-15(q) P/L—Inv. delineating tube 4X150G SN 11-58147
G-15(r) Tube 4X150G—SN 1J-51317
G-15(s) Tube 4X150G—SN 11-58697
G-15(t) P/L—Inv. delineating tube 4X150G SN 1B-37636
G-16 United Packing List No. A 12261
G-16(a) Tube 4X150G—SN 1C-29355
G-16(b) Tube 4X150G—SN 1F-26922
G-16(c) P/L—Inv. delineating tube 4X150G SN 1C-21668
G-16(d) Tube 4X150G—-SN 1L-28326
G-16(e) Tube 4X150G—SN 1J-15856
79
NO. DESCRIPTION OF EXHIBIT
G-16(f) Tube 4X150G—SN 1B-38344
G-16(g) Tube 4X150G—SN 1D-12183
G-16(h) Tube 4X150G—SN 11-52273
G-16(i) Tube 4X150G—SN 1D-28116
G-16(j) Tube 4X150G—SN 11-34960
G-16(k) Tube 4X150G—SN 1B-36096
G-16(1) Tube 4X150G—SN 2C-31994
G-16(m) P/L—Inv. delineating tube 4X150G SN 1C-22212
G-16(n) Tube 4X150G—SN JO-06651
G-16 (0) Tube 4X150G—SN 1K-23783
G-16(p) Tube 4X150G—SN 11-61581
G-16(q) Tube 4X150G—SN 10-32387
G-16(r) Tube 4X150G—SN 2A-09659
G-16(s) Tube 4X150G—SN AO-14421
G-16(t) Tube 4X150G—SN 1D-03083
G-17 United Packing List No. A 12262
G-17(a) Tube 4X150G—SN 1D-28217
G-17(b) Tube 4X150G—SN 1C-11274
G-17(c) Tube 4X150G—SN AO-10355
G-17(d) Tube 4X150G—SN 1C-13499
G-17(e) Tube 4X150G—SN L9-23624
G-17(f) Tube 4X150G—SN 1G-33418
G-17(g) P/L delineating tube 4X150G—SN LO-22993
G-17(h) Tube 4X150G—SN 1C-29066
G-17(i) Tube 4X150G—SN AO-13038
G-17(j) Tube 4X150G—SN K9-26257
G-17(k) Tube 4X150G—SN L9-17974
G-17(1) Tube 4X150G—SN 1D-28782
G-17(m) P/L—Inv. delineating tube 4X150G SN 1C-37636
G-17(n) Tube 4X150G—SN I0-34358
G-17(0) Tube 4X150G—SN 1L-21824
G-17(p) Tube 4X150G—SN 1L-09768
G-17(q) Tube 4X150G—SN 1B-25725
G-17(r) Tube 4X150G—SN 1C-29007
G-17(s) Tube 4X150G—SN 1D-24416
G-17(t) Tube 4X150G—SN 1D-03219
G-18 United Packing List No. A 12263
G-18 (a)
Tube 4X150G—SN 2A-12495
NO. DESCRi? TION OF EXHIBIT
G-18(b) Tube 4X150G-—SN 1D-03359
G-18(c) Tube 4X150G—SN 1C-21679
G-18(d) Tube 4X150G—SN 2A-11227
G-18(e) P/L—Inv. delineating tube 4X150G SN 1C-38475
G-18(f) Tube 4X150G—SN 1C-11220
G-18(g) Tube 4X150G—SN 1C-10731
G-18(h) Tube 4X150G—SN 1C-29046
G-18(i) Tube 4X150G—SN 1C-29303
G-18(j) P/L Al2263 delineating tube 4X150G SN 1D-04509
G-18 (k) Tube 4X150G—SN 1C-13299
G-18(1) Tube 4X150G—SN 1C-29331
G-18(m) Tube 4X150G—SN 1C-20537
G-18(n) P/L—Inv. delineating tube 4X150G SN 1C-16929
G-18 (0) Tube 4X150G—SN 1B-28877
G-18(p) Tube 4X150G—SN 1C-18013
G-18(q) Tube 4X150G—SN 1C-29138
G-18(r) P/L—Inv. delineating tube 4X150G SN 1C-17028
G-18(s) Tube 4X150G—SN 1F-11282
G-18(t) Tube 4X150G—SN 11-52039
G-19 United Packing List No. A 12264
G-19(a) ‘Tube 4X150G—SN 1C-28614
G-19(b) P/L—Inv. delineating tube 4X150G SN 1D-10674
G-19(c) P/L delineating tube 4X150G—SN 1C-29021
G-19(d) Tube 4X150G—SN 1C-45699
G-19(e) P/L—Inv. delineating tube 4X150G SN 1C-29101
G-19(f) P/L—Inv. delineating tube 4X150G SN 1F-26429
G-19(g) Tube 4X150G—SN 1C-21281
G-19(h) Tube 4X150G—SN 1C-46840
G-19(i) Tube 4X150G—SN 1C-12307
G-19(j) Tube 4X150G—SN 1D-04350
G-19(k) Tube 4X150G—SN 1G-23337
G-19(1) Tube 4X150G—SN 1C-37440
G-19(m) Tube 4X150G—SN 1C-45551
G-19(n) P/L—Inv. delineating tube 4X150G SN 1C-22305
G-19(0) Tube 4X150G—SN 1C-46928
G-19(p) Tube 4X150G—SN 1C-45462
G-19(q) Tube 4X150G—SN 1D-24620
G-19(r) P/L delineating tube 4X150G—SN 1D-05285
81
NO. DESCRIPTION OF EXHIBIT
G-19(s) Tube 4X150G—SN 1D-05439
G-19(t) Tube 4X150G—SN 1C-10619
G-19(u) Tube 4X150G—SN 1C-27909
G-19(v) Tube 4X150G—SN 1C-21592
G-19(w) Tube 4X150G—SN 1C-12808
G-19 (x) Tube 4X150G—SN 1D-12373
G-19(y) Tube 4X150G—SN 1G-24360
G-19(z) Tube 4X150G—SN 1G-21669
G-19(aa) Tube 4X150G—SN 1D-03323
G-19 (bb) Tube 4X150G—SN 1D-29982
G-19(cec) Tube 4X150G—SN 1G-33711
G-20 United Packing List No. A 12265
G-20(a) Tube 4X150G—SN 1L-39932
G-20(b) Tube 4X150G—SN L9-18197
G-20(c) Tube 4X150G—-SN 1K-17174
G-20(d) Tube 4X150G—SN 1C-20496
G-20(e) Tube 4X150G—SN 1K-43823
G-20(f) Tube 4X150G—-SN GO-26812
G-20(g) Tube 4X150G—SN 1L-08808
G-20(h) Tube 4X150G—SN 1C-17947
G-20(i) Tube 4X150G—SN 1D-24499
G-20(j) Tube 4X150G—SN 11-52219
G-20(k) Tube 4X150G—SN 1C-11180
G-20(1) Tube 4X150G—SN 1C-13177
G-20(m) Tube 4X150G—SN 1J-05374
G-20(n) Tube 4X150G—SN 1C-13838
G-20(0) P/L delineating tube 4X150G—SN 1D-12546
G-20(p) Tube 4X150G—SN 1C-12497
G-20(q) Tube 4X150G--SN 1C-18172
G-20(r) Tube 4X150G—SN L9-35357
G-20(s) P/L delineating tube 4X150G—SN 1C-42619
G-20(t) Tube 4X150G—SN 1J-46112
G-21 United Packing List No. A 12268
G-21(a) Tube 4X150G—-SN 1K-21745
G-21(b) Tube 4X150G—SN 1C-18022
G-21(c) Tube 4X150G—SN 1J-50359
G-21(d) Tube 4X150G—SN 1G-31976
G-21(e)
Tube 4X150G—SN 1G-32437
82
NO. DESCRIPTION OF EXHIBIT
G-21(f) Tube 4X150G—SN 1C-11197
G-21(g) Tube 4X150G—SN 1C-29105
G-21(h) Tube 4X150G—SN L9-08902
G-21(i) Tube 4X150G—SN 1C-29561
G-21(j) Tube 4X150G—SN 1D-04753
G-21(k) Tube 4X150G—SN AO-14548
G-21(1) Tube 4X150G—SN 1C-46901
G-21(m) Tube 4X150G—SN AO-14534
G-21(n) Tube 4X150G—SN 1D-12331
G-21(0) Tube 4X150G—SN 1D-03926
G-21(p) Tube 4X150G—SN L9-23956
G-21(q) Tube 4X150G—SN 1D-24633
G-21(r) Tube 4X150G—-SN 1D-03925
G-21(s) Tube 4X150G—SN 1L-13500
G-21(t) P/L—Inv. delineating tube 4X150G SN 1C-10387
G-22 Government Contract #DA-36-AMC-01080(E) with
Model Engineering & Mfg. Co. dated 8/29/62
G-23(a) Government Voucher #124842, dated 2/18/64 with
MEMCOR Invoices & Inspection Report
G-23 (b) Government Voucher #125189, dated 3/4/64
G-23(c) Government Voucher #125544, dated 3/24/64
G-23 (d) Government Voucher #125937, dated 4/13/64
G-23(e) Government Voucher #126335, dated 4/29/64
G-23 (f) Government Voucher #126726, dated 5/14/64
G-23(g) Government Voucher #127370, dated 6/12/64
G-23(h) Government Voucher #120601, dated 7/31/64
G-24 Patent Registration No. 504,860 for JAN
G-25 Model Engineering “Certification”
G-26 Sonora Electromatics file on United National Labs
transaction with Model Engineering (FBI file)
G-26(a) Model Engineering Purchase Order No. 1-63645 E
dated 4/4/63
G-26(b) Model Engineering Purchase Order dated 9/27/63
G-26(c) Model Engineering Purchase Order dated 12/26/63
G-26(d) Model Engineering Shipping Memo dated 1/9/64
G-26(e) Model Engineering Shipping Memo dated 1/14/64
G-26(f) Model Engineering Shipping Memo dated 4/2/64
G-26(g) Arthur H. Richardson, Inc. triplicate invoices (8)
G-26(h) Arthur H. Richardson, Inc. invoice packet (3)
— —————L lll
83
NO. DESCRIPTION OF EXHIBIT
G-26(i) Saxon Laboratory, Inc. documents (18)
G-26(j) United National Labs Invoices with REA receipts (11)
G-26(k) Arthur H. Richardson, Inc. Credit Memorandum dated
3/13/64 (3)
G-26(1) United National Labs Packing Lists (4)
G-26(m) Miscellaneous papers (4)
G-27(a) Arthur H. Richardson, Inc. triplicate invoice #10149
G-27 (b) Arthur H. Richardson, Inc. triplicate invoice #10397
G-27(c) Arthur H. Richardson, Inc. triplicate invoice #10506
G-27(d) Arthur H. Richardson, Inc. triplicate invoice #09950
G-28 Bornstein’s sworn statement dated 8/14/64
G-29 Page’s sworn statement dated 8/14/64
G-30 Page’s sworn statement dated 10/6/64
G-31 Page’s sworn statement dated 10/15/64 (12)
G-32 Bornstein’s letter to Model Engineering dated 1/24/64
G-33 Page’s letter to Model Engineering dated 5/10/63
G-34 Indictment in Cr. No. 516-65
G-35 Bornstein Judgment of Conviction
G-36 Page Judgment of Conviction
G-37 Eagle Stamp in envelope
G-38 Bornstein Response to Requests for Admissions
G-39 Page Response to Requests for Admissions
G-40 Page Response to Request for Admissions admitting
substance of Paragraph 3 of Complaint
G-41 Bornstein Answer Admitting Paragraph 3 of Com-
laint
G-42 Desustetn Answer admitting paragraph 15 of Com-
laint
G-43 ~ Answer admitting paragraph 18 of Complaint
G-44 EIMAC Sales Order dated April 30, 1963
G-45 United Packing List A 11073 Dated January 16,
[1964].
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87
May 22, 1973
The Honorable John J. Kitchen
United States District Judge
P.O. Building & Court House
Camden, New Jersey
Re: U.S.A. v. Philip L. Bornstein, et al.
Civil Action No. 1141-67
Dear Judge Kitchen:
In compliance with Stipulation No. 17(o0) in the
Stipulation of Facts filed in the captioned matter on
April 18, 1973, we are enclosing the official records of the
Tobyhanna Army Depot, Tobyhanna, Pennsylvania, cer-
tified under the seal of the Secretary of the Army, which
consist of and report the following:
1. Letter dated June 18, 1964, from the Chief,
Quality Assurance Office, Department of the Army,
directing, inter alia, that:
“Box 5/5 subject equipment received from Model
Engineering Mfg. Corp., P.O. 15263-PP-63 be opened
and all electron tubes type 4X150G, FSN 5960-264-
9508, manufactured by Eitel-McCullough (Eimac)
be replaced with tubes from stock. * * *” (Emphasis
supplied),
and
“All tubes removed from the equipment must be
isolated and placed in * * * a secure location. * * *”.
2. Coordination Sheet, dated July 2, 1964, consist-
ing of two pages, referencing the June 18, 1964
letter, reporting, inter alia, at page 1 thereof:
“Requirements of referenced letter has (sic) been
accomplished.”
and
“Two hundred and ninety-eight (298) such tubes
have been removed from 149 each Accessory Kits,
88
boxes #5/5, are being held in abeyance in the
security area. Tubes have been obtained to replace
the tubes taken from the accessory kits. Sets have
been retained in issue stock.” (Emphasis supplied).
and reporting, at page 2 thereof, the replacement cost
for each 4X150G electron tube, as follows:
“300 each tube type 4X150G at $40.82—$12,246.00.”
As is indicated on the designated page 2 of the at-
tachment, 48 radio kit sets, each containing two 4X150G
electron tubes, were shipped from the Tobyhanna Army
Depot to the Lexington Blue Grass Army Depot, Lex-
ington, Kentucky and to the Electronic Proving Ground,
Fort Huachuea, Arizona. The subject tubes in these
sets were not examined at Tobyhanna prior to ship-
ment. In addition, 48 radio kit sets, each also contain-
ing two 4X150G electron tubes, were shipped to the Sac-
ramento Army Depot, Sacramento, California. We are
awaiting the receipt of certified copies of comparable
official documents, under the seal of the Secretary of the
Army, or affidavits, from each of the aforesaid depots.
We anticipate that we will be in receipt of such docu-
mentation by no later than May 30, 1973. However,
in lieu thereof, if the defendants are willing to stipulate
to the cost of replacing the 4X150G electron tubes in
the kits shipped to said depots on the basis of the
enclosure, the proofs for this aspect of the case can be
closed and the matter could be set down for argument
forthwith.
By carbon copy of this letter, the attorneys for the
defendants are being provided with a copy of the en-
closure and are being requested to immediately advise us
89
whether or not they will accept the enclosure as proof
of the replacement cost for each 4X150G electron tube.
Respectfully,
HERBERT J. STERN
United States Attorney
By: CAROLYN E. ARCH
Assistant U.S. Attorney
Encl.
CM/RRR No. 271140
ec: Jack Ballan, Esq.
CM/RRR No. 271141
William Rossmoore, Esq.
CM/RRR No. 271142
90
UNITED STATES OF AMERICA
[SEAL]
DEPARTMENT OF THE ARMY
Tobyhanna, Pa. 18 April 73
I HEREBY CERTIFY that the documents attached
hereto are true and correct copies of letter dated July
_ 1964, with attachments, and Disposition Form dated 18
June 1964 pertaining to quantity of vacuum tubes 4X
150G supplied by Model Engineering and Manufacturing
Corporation, official documents in the custody of the
Director for Quality Assurance at Tobyhanna Army
Depot, Tobyhanna, Pa.
/s/ William J. Lord
(Signature of Custodian)
WILLIAM J. LorD
Director of Quality Assurance
I HEREBY CERTIFY that William J. Lord, who
signed the foregoing certificate, is the Director for
Quality Assurance and custodian of the official document
contained in this file, and that full faith and credit
should be given to his certification.
IN TESTIMONY WHEREOF I, ROBERT F. FROE-
HLKE, Secretary of the Army, have hereunto caused the
seal of the Department of the Army to be affixed and
my name to be subscribed by the Administrative Assist-
ant of the said Department, at the City of Washington,
this 23rd day of April, 1973.
/s/ Robert F. Froehlke
ROBERT F. FROEHLKE
Secretary of the Army
By /s/ John G. Connell, Jr.
Administrative Assistant
91
[ILLEGIBLE] FORM
[For OFFICIAL UsE ONLY]
Symbol or File Reference: SSMTO-AQ
Subject: Radio Set, Group OA-1387A, TRC,
FSN 5820-892-0698
To—Ch, SPAR
From-—Ch, Qual Assur O
Date—i8 Jun 64
CMT I
S. Ponder/ama/249
1. Request that Box 5/5 subject equipment received
from Model Engineering Mfg. Corp., P.O. 15263-PP-63
be opened and all electron tubes type 4X150G, FSN 5960-
264-9508, manufactured by Eitel-McCullough (Eimac)
be replaced with tubes from stock. Tubes are available
— stock procured from Eitel-McCullough on P.O. 07200-
P-61.
2. All tubes removed from the equipment must be
isolated and placed in CRC-9 in a secure location. Each
tube must be tagged or otherwise identified as being
removed from a specific serial number, pkd, date, etc.,
and signed by two responsible individuals, capable of
attesting in criminal or civil proceedings. Photograph
should be taken to depict various phases of the project.
3. The serial number and manufactured date number
are to be recorded for reporting to the Chicago Army
District. This office will formalize the report on com-
pletion.
4. Subject stock is to be retained in issue stock on
completion of the project. It is currently frozen from
issue.
5. Mr. Gabriel Unis, QC Specialist, of this office will
be present to witness the operation. Request that he be
contacted when the project is started.
92
6. Request this project be expedited.
/s/ Seldon Ponder
SELDON PONDER
Chief, Quality Assurance
Office
Cy furn:
Legal O (2 cys)
Ch, Storage Div
TO C/Storage Div.
From C/SPAR Div.
Date 25 June 64
CMT 2
T O’'HARA/mv/610
Request concurrence with comment No. 1 and SPAR
Division notified of action completion.
/8/ Thomas W. O’Hara
MASON C. LINN
C/SPAR Div.
93
COMEBACK COPY: Q.A.0.
COORDINATION SHEET
(“For OFFICIAL UsE ONLY’’}
2 JUL 1964
SSMTO-AQ-C
SUBJECT: Alleged MIL-E-1 Irregularities of Vacuum
Tubes Jan 4X150G, Reference DA-36-039-
01188(E) and DA-36-039-01080(E)
TO: Commanding Officer
U.S. Army Material Command
Chicago Procurement District
ATTN: AMXCH-IT-3
623 South Wabash Avenue
Chicago, Illinois 60605
1. Reference your letter dated 18 June 1964.
2. Requirements of referenced letter has been accomp-
lished.
a. Quantity of one hundred fifty (150) sets were
available in depot stock.
b. One (1) set remaining intact as received, has been
frozen from issue, and held in the security area.
c. Two hundred and ninety-eight (298) subject tubes
have been removed from 149 each Accessory Kits, boxes
#5/5, are being held in abeyance in the security area.
Tubes have been obtained to replace the tubes taken
from the accessory kits. Sets have been retained in issue
stock.
d. Attached as inclosure #1 is a list of subject tube
serial numbers, and other required information.
e. Inclosure #2 is a sample of the tag that was
annotated, signed and attached to each of the 298 each
tubes removed from the 149 each Accessory Kits, box
#5 of 5.
3. Records at this depot indicate that forty-eight (48)
sets were shipped to the following consignees:
94
a. 39 each on requisition number A2256641040438 and
1 each on requisition #+A2256641040439 to Signal Stock
Account Programmed Stock, Lexington Army Depot, Lex-
ington, Kentucky.
b. 8 each on requisition #A6130041072126 to Con-
solidated Supply Property Officer, U.S.A. Electronic Prov-
ing Ground, Fort Huachuca, Arizona.
4. The following is a cost break-down for labor, ma-
terial and inspection to remove tubes from 149 sets:
20.5 hrs @ $2.93 per hr. $ 60.07
20.5 hrs @ 2.28 per hr. 46.74
61.5 hrs @ 2.36 per hr. 145.14
20.5 hrs @ 4.27 per hr. 87.54
123 hrs total labor $ 339.49
overhead 123 hrs @ 0.95 116.85
Total labor $ 456.34
300 each tube type 4X150G @ $40.82 $12,246.00
Total $12,702.34
5. Photographs depicting various phases of this project
i.e. removing tubes from kits, are available for evi-
dentiary purposes from this headquarters upon request.
6. 298 each tube type 4X150G are being held in
abeyance pending disposition instructions from your of-
fice.
For THE COMMANDER:
B. R. YARGS
Ist Lt, CrdC
Adjutant
2 Incl
as
Cy furn:
CG, USAMC, ATTN: AMCGC-S, WASH DC
CG, USASMC, ATTN: Judge Advocate
Wash, D.C., (2 cys)
CG, USASMC, ATTN: AMSSN-QA, Wash, DC
95
[Dispatched 2 Jul 1964—Dispatched Message Center
Tobyhanna Army Depot]
Serial Numbers Box Number Partial No. B/L No.
DO-23703 48-50 6 B7339243
2H-16782 48-50 6 B7339243
K9-42463 44-50 6 B7339243
1C-21408 44-50 6 B7339243
J-9-16341 45-50 6 B7339243
(B, R or P)
0-40069 45-50 6 B7339243
2F-20919 43-50 6 B7339243
2H-12285 43-50 6 B7339243
2H-12607 46-50 6 B7339243
21-09194 46-50 6 B7339243
2F-15200 45-50 5 B7339242
2D-20803 45-50 5 B7339242
2D-25248 42-50 5 B7339242
21-17322 42-50 5 B7339242
21-09914 47-50 5 B7339242
2G-18332 47-50 5 B7339242
AO-22382 49-50 6 B7339243
2F-45732 49-50 6 B7339243
J9-22904 42-50 6 B7339243
DO-16655 42-50 6 B7339243
2G-24037 50-50 5 B7339242
2H-16934 50-50 5 B7339242
2F-38479 48-50 5 B7339242
2H-13121 48-50 5 B7339242
2C-26366 46-50 5 B7339242
2F-35032 46-50 5 B7339242
1L-42953 44-50 5 B7339242
2B-25202 44-50 5 B7339242
3L-08535 28-30 20 B7340402
3L-06243 28-30 20 B7340402
2G-23864 43-50 5 B7339242
2A-12373 43-50 5 B7339242
D9-06036 42-50 4 B7339098
3K-30824 42-50 4 B7339098
21-07986 41-50 5 B7339242
1K-21701 41-50 5 B7339242
3L-05690 45-50 4 B7339098
1C-29196 45-50 4 B7339098
AO-25206 41-50 4 B7339098
3L-04779 41-69 4 B7339098
Serial Numbers Box Number Partia! No. B/L No.
1F-04349 50-50 2 B7338449
21-13406 50-50 2 B7338449
1C-28145 41-50 2 B7338449
1A-09209 41-50 2 B7338449
1B-11125 46-50 2 B7338449
1H-05366 46-50 2 B7338449
L9-05282 44-50 2 B7338449
1F-23746 44-50 2 B7338449
1H-04767 48-50 3 B7339097
21-16383 48-50 3 B7339097
1D-04323 45-50 1 B7338448
1B-36135 45-50 1 B7338448
1B-10427 46-50 3 B7339097
2H-13895 46-50 3 B733°9097
2G-23679 48-50 2 B7338449
2H-16976 48-50 2 B7338449
2C-32202 47-50 2 B7338449
2H-15202 47-50 2 B7338449
1J-12551 45-50 3 B7339097
21-07867 45-50 3 B7339097
3L-11264 50-50 4 B7339098
3L-06889 50-50 4 B7339098
3L-08534 49-50 4 B7339098
FO-19782 49-50 4 B7339098
21-14798 49-50 5 B7339242
2H-13588 49-50 5 B7339242
2F-13192 50-50 3 B7339097
1C-11282 50-50 3 B7339097
3L-09744 46-50 4 B7339098
EO-24488 46-50 4 B7339098
3L-04655 44-50 4 B7339098
EO-16345 44-50 4 B7339098
L9-21255 47-50 4 B7339098
FO-32384 47-50 4 B7339098
BO-31128 43-50 4 B7339098
DO-16634 43-50 4 B7339098
3L-06357 48-50 4 B7339098
3K-14363 48-50 4 B7339098
1C-21304 49-50 | B7338448
1C-20586 49-50 1 B7338448
2B-27361 43-50 2 B7338449
1C-29454 43-50 2 B7338449
1C-27970 49-50 2 B7338449
1C-37490 49-50 2 B7338449
1A-10293 42-50 2 B7338449
1B-29512 42-50 2 B7338449
Serial Numbers Box Number Partial No. B/LNo.
11-59628 42-50 3 B7339097
1H-55380 42-50 3 B7339097
21-08307 41-50 3 B7339097
2G-24061 41-50 3 B7339097
21-06542 49-50 3 B7339097
21-22312 49-50 3 B7339097
1C-37516 47-50 3 B7339097
1D-20008 47-50 3 B7339097
1D-04600 43-50 3 B7339097
1C-37830 43-50 3 B7339097
1F-22929 44-50 3 B7339097
21-08632 44-50 3 B7339097
1B-10565 45-50 2 B7338449
1C-22299 45-50 2 B7338449
1F-22625 44-50 1 B7338448
1C-28057 44-50 1 B7338448
1F-11142 42-50 1 B7338448
1D-04364 42-50 1 B7338448
1F-13259 46-50 1 B7338448
1D-12571 46-50 1 B7338448
1G-32008 41-50 1 B7338448
1C-16972 41-50 1 B7338448
1F-47216 47-50 1 B7338448
1D-03999 47-50 1 B7338448
1C-37453 48-50 1 B7338448
1C-13420 48-50 1 B7338448
1D-04460 50-50 1 B7338448
1C-16977 50-50 1 B7338448
1J-05734 50-50 14 B7339935
1D-04802 50-50 14 B7339935
1E-29495 43-50 14 B7339935
1C-13442 43-50 14 B7339935
1B-37399 44-50 14 B7339935
L9-17974 44-50 14 B7339935
1B-38157 43-50 1 B7338448
1C-45676 43-50 1 B7338448
1D-12402 42-50 13 B7339934
1B-38344 42-50 13 B7339934
1C-45551 49-50 14 B7339935
1C-29066 49-50 14 B7339935
11-52768 46-50 14 B7339935
1C-27909 46-50 14 B7339935
1C-37540 45-50 14 B7339935
10-21216 45-50 14 B7339935
1L-23200 49-50 7 B7339244
21-08965 49-50 7 B7339244
Serial Numbers Box Number Partial No. B/L No.
1J-13818 46-50 7 B7339244
21-08549 46-50 7 B7339244
2D-10886 50-50 7 B7339244
21-13714 50-50 7 B7339244
1C-10804 47-50 7 B7339244
DO-11641 47-50 7 B7339244
1C-16996 42-50 8 B7339456
K9-39870 42-50 8 B7339456
2A-12614 41-50 7 B7339244
2F-16246 41-50 7 B7339244
2C-28834 48-50 7 B7339244
K9-38062 48-50 7 B7339244
2A-09665 45-50 7 B7339244
2B-24426 45-50 7 B7339244
21-08279 42-50 7 B7339244
1K-18565 42-50 7 B7339244
21-14797 44-50 7 B7339244
2B-24110 44-50 7 B7339244
1C-29526 50-50 8 B7339456
K9-38069 50-50 x B7339456
2A-11984 44-50 x B7339456
1B-37464 44-50 x B7339456
2H-16835 43-50 7 B7339244
1D-03986 43-50 7 B7339244
21-13772 50-50 6 B7339243
21-17495 50-50 6 B7339243
2F-34960 Loose Dome 47-50 6 B7339243
BO-29203 47-50 6 B7339243
2H-10989 41-50 6 B7339243
2B-58783 41-50 6 B7339243
DO-14637 45-50 8 B7339456
1C-13584 45-50 x B7339456
2A-09562 49-50 x B7339456
21-08029 49-50 B7339456
1C-29864 46-50 ~ B7339456
1H-50193 46-50 - B7339456
3L-08019 43-50 ~ B7339456
K9-42462 43-50 8 B7339456
CO-26880 41-50 x B7339456
K9-38077 41-50 x B7339456
1B-38163 66-75 10 B7339458
DO-14714 66-75 10 B7339458
L9-23934 49-50 9 B7339457
CO-24254 49-50 9 B7339457
1H-07858 61-75 10 B7339458
G7-14349 61-75 10 B7339458
Serial Numbers Box Number Partial No. B/L No.
BO-23862 63-75 10 B7339458
17-01429 63-75 10 B7339458
1C-29015 64-75 10 B7339458
1C-28062 64-75 10 B7339458
8K-30220 74-75 10 B7339458
1G-22374 74-75 10 B7339458
17-09700 41-50 11 B7339459
K9-38084 41-50 11 B7339459
3L-04391 70-75 10 B7339458
31-14251 70-75 10 B7339458
H7-17449 50-50 11 B7339459
1C-29347 50-50 11 B7339459
17-15753 43-50 11 B7339459
1C-29116 43-50 11 B7339459
G8-18875 46-50 11 B7339459
E7-05811 46-50 11 B7339459
1C-37862 47-50 11 B7339459
K9-44371 47-56 11 B7339459
1C-37691 42-50 11 B7339459
1F-11552 42-50 11 B7339459
1C-29016 49-50 11 B7339459
1C-28941 49-50 11 B7339459
17-15730 45-50 11 B7339459
1C-37558 45-50 11 B7339459
11-58697 42-50 15 B7339936
2A-09659 42-50 15 B7339936
1C-28985 49-50 12 B7339933
1D-28782 49-50 12 B7339933
1C-17100 44-50 11 B7339459
1C-21543 44-50 11 B7339459
1C-28937 46-50 12 B7339933
1D-05022 46-50 12 B7339933
1C-46928 48-50 16 B7339937
1C-21679 48-50 16 B7339937
1C-18172 43-50 12 B7339933
1C-29007 43-50 12 B7339933
1C-13177 50-50 17 B7340225
1C-37440 50-50 17 B7340225
1C-10396 47-50 12 B7339933
1C-10619 47-50 12 B7339933
1K-43823 45-50 12 B7339933
10-32253 45-50 12 B7339933
3K-30063 47-50 ® B7339456
3G-23261 47-50 x B7339456
1C-13729 41-50 12 B7339933
1L-21336 41-50 12 B7339933
Serial Numbers Box Number Partial No. B/L No.
3L-11740 73-75 10 B7339458
3L-04777 73-75 10 B7339458
31-21268 68-75 10 B7339458
3L-05131 68-75 10 B7339458
1F-13747 65-75 10 B7339458
3L-09777 65-75 10 B7339458
17-01524 48-50 ll B7339459
1G-35768 48-50 ll B7339459
17-09712 75-75 10 B7339458
1C-13748 75-75 10 B7339458
3L-11830 69-75 10 B7339458
3L-08567 69-75 10 B7339458
L9-24115 72-75 10 B7339458
H7-06827 72-75 10 B7339458
1C-13299 50-50 12 B7329933
1C-18024 50-50 12 B733¢933
1G-45820 48-50 12 B7339933
L9-08902 45-50 12 B7339933
1L-39932 42-50 12 B7339933
1C-29105 42-50 12 B7339933
2D-19310 48-50 8 B7339456
1J-51849 48-50 x B7339456
L9-24256 47-50 9 B7339457
B,P or R
0-39921 47-50 9 B7339457
C8-13118 42-50 9 B7339457
2H-16724 42-50 9 B7339457
AO-14548 42-50 14 B7339935
1C-46707 42-50 14 B7339935
1D-12220 41-50 14 Loose dome B7339935
1D-03187 41-50 14 B7339935
1E-12748 48-50 14 B7339935
1B-10544 48-50 14 B7339935
2A-11227 50-50 13 B7339934
1C-11180 50-50 13 B7339934
1D-12373 48-50 13 B7339934
1B-28877 48-50 13 B7339934
11-61581 45-50 13 B7339934
1G-33418 45-50 13 B7339934
FO-31486 71-75 10 B7339458
K9-38080 71-75 10 B7339458
3L-06430 67-75 10 B7339458
3L-05354 67-75 10 B7339458
1C-13672 62-75 10 B7339458
1C-29529 62-75 10 B7339458
L9-28972 50-50 9 B7339457
Serial Numbers Box Number Partial No. B/L No.
1F-36686 50-50 9 B7339457
AO-16444 45-50 i) B7339457
L9-42428 45-50 9 B7339457
21-09008 41-50 9 B7339457
17-15664 41-50 9 B7339457
DO-20794 43-50 9 B7339457
BO-33622 43-50 9 B7339457
2H-13682 44-50 9 B7339457
BO-40042 44-50 9 B7339457
J9-16667 46-50 9 B7339457
J9-23199 46-50 9 B7339457
1C-37585 48-50 9 B7339457
DO-11579 48-50 9 B7339457
1D-12183 47-50 14 B7339935
K9-26257 47-50 14 B7339935
1G-23337 43-50 13 B7339934
1D-04753 43-50 13 B7339934
1C-29046 47-50 13 B7339934
1C-18022 47-50 13 B7339934
1C-46901 46-50 13 B7339934
GO-26812 46-50 13 B7339934
AO-14534 44-50 13 B7339934
1K-12055 44-50 13 B7339934
1L-10878 49-50 13 B7339934
1G-31976 49-50 13 B7339934
1C-18013 41-50 13 B7339934
1D-10943 41-50 13 B7339934
1C-10731 44-50 12 B7339933
17-15712 44-50 12 B7339933
102
DATE OF INSPECTION
SHIPMENT NUMBER ON WHICH RECEIVED ——
BILL OF LADING NUMBER
CONTRACT NUMBER DA-36-039-AMC-01080(E)
P.O. 15263-PP-63-A1-51
SIGNATURE OF INSPECTOR
GABRIEL F. UNIS, Q.A.0. INSP.
SIGNATURE OF ITEM IDENTIFIER
WILLIAM FRITCH, STG. DIV. LT.
SERIAL NUMBER OF TUBE
DATE TUBE WAS TAKEN OUT OF BOX
Ineld #2
103
WILLIAM ROSSMOORE
Counselor at Law
744 Broad Street
Newark, New Jersey 07102
(201) 622-3791
[Miss Arch, United States Attorney, District of
New Jersey, Rec’d Mail Room. 1973 May 25 AM 9:07
613694—Civ. 1141-67]
May 24, 1973
Honorable John J. Kitchen
U.S. District Court
Post Office Building
Camden, New Jersey 08101
Re: U.S. v. Philip L. Bornstein, et al.
Civil Action No. 1141-67
My dear Judge Kitchen:
I am in receipt of a copy of Miss Arch’s letter to you
dated May 22, 1973. I was quite surprised, at this late
date, after briefs had been submitted by both sides,
and almost two months after the scheduled trial date to
receive this attempt to add totally new facts to the case.
I point out to the Court the following:
1. While Miss Arch’s letter states that it is “in com-
pliance with Stipulation No. 17(0)”, it most cer-
tainly is not in such compliance. Stipulation No. 17
(o) called for proof by “affidavit or voucher”. The
attachments to Miss Arch’s letter contain neither.
2. The attachments in no way substantiate the claim in
Stipulation No. 17(0) that the “cost to the United
States in replacing the 442 falsely marked 4x150G
electron tubes was $40.82 per tube or a total of
$18,042.44”. The letter from the Chief of the Quality
Assurance Office dated June 18, 1964 specifically
a ee
104
states, “that the tubes are to be replaced with tubes
from stock”. The letter from B. R. Yaros dated July
2, 1964 indicates compliance with this and the re-
moval of only 298 tubes. The hypothetical cost break
down in para. 4 of that letter is unsupported by either
an affidavit or a voucher.
. Even if the attachments to Miss Arch’s letter be
accepted by the Court for whatever they are worth,
they show maximum damages of 298 x $40.82 or a
total of $12,164.36 instead of the $18,042.44 claimed.
. Since the Government’s claim for 35 forfeitures is
based on 35 invoices accompanying 8 vouchers in-
volving the shipment of 342 radio sets containing
684 of the tubes in question, we have at this point
no way of knowing how many of these 8 vouchers
and 35 invoices actually contained the 150 radio sets,
or 298 tubes which were removed as faulty. Accord-
ingly there is now a total lack of proof to justify any
more than one forfeiture based on the one contract
involved.
. Obviously I cannot enter into the stipulation requested
by Miss Arch neither as to the cost of the 298 tubes
referred to in the attachments to her letter, nor as
to an additional 96 radio kit sets shipped to Lexing-
ton, Kentucky; Ft. Huachuca, Arizona; or Sacra-
mento, Calif. If these additional radio sets, each
containing 2 of the tubes in question were included,
the total would rise to 492 tubes, 50 more than the
highest claim the Government has made to date
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