1
 General Electric Co. executives and lawyers provided misleading and false information to the Pentagon in 1985 in an effort 
5001
span

2
to cover up longstanding fraudulent billing practices,
1
elaboration-object-attribute-e

3
 federal prosecutors alleged in legal briefs.
5001
attribution

4
 The government's startling allegations,
5004
span

5
 filed only days before the scheduled start of a criminal overcharge trial against GE in Philadelphia federal district court,
4
elaboration-additional-e

6
 challenge the motives and veracity of the nation's third-largest defense contractor.
5005
Same-Unit

7
 In a strongly worded response 
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8
summarizing a filing made in the same court yesterday,
7
elaboration-additional-e

9
 GE asserted that
5077
Same-Unit

10
 prosecutors have misstated the testimony of witnesses, 
5010
List

11
distorted documents 
5010
List

12
and ignored important facts. 
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List

13
The company attacked the government's allegations as reckless and baseless mudslinging,
5012
List

14
 and said 
15
attribution

15
its management promptly and accurately reported to the Pentagon all relevant information about billing practices.
5013
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16
 The case strikes at the corporate image of GE,
5015
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17
 which provides the military with everything from jet engines and electronic warfare equipment to highly classified design work on the Strategic Defense Initiative, 
16
elaboration-additional-e

18
and could cause a loss of future defense contracts 
5017
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19
if Pentagon and Justice Department officials take a tough stance.
18
condition

20
 The company has been considered an industry leader
5019
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21
 in advocating cooperation and voluntary disclosures of improper or inflated billing practices.
20
elaboration-object-attribute-e

22
 But the government now claims 
5022
attribution

23
that a group of company managers and lawyers engaged in an elaborate strategy over five years 
5022
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24
to obscure from federal authorities the extent and details of widespread fraudulent billing practices.
23
purpose

25
 The problems were uncovered during a series of internal investigations of the company's Space Systems division,
5024
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26
 which has been the focus of two separate overcharge prosecutions by the government since 1985.
25
elaboration-additional-e

27
 The dispute stems from pretrial maneuvering in the pending court case,
5026
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28
 in which prosecutors have been demanding access to a host of internal company memos, reports and documents. 
27
elaboration-additional-e

29
Last November, a federal grand jury indicted GE on charges of fraud and false claims in connection with an alleged scheme 
5028
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30
to defraud the Army of $21 million on a logistics computer contract.
29
elaboration-additional-e

31
 The company, for its part, maintains 
5031
attribution

32
that many of the disputed documents are privileged attorney-client communications
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33
 that shouldn't be turned over to prosecutors.
32
elaboration-object-attribute-e

34
 A hearing is scheduled on the issue today.
5029
elaboration-additional

35
 The government's 136-page filing covers events 
5034
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36
leading up to the current case and an earlier indictment in March 1985,
5036
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37
 when GE was accused of defrauding the Pentagon 
5037
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38
by illegally claiming cost overruns on Minuteman missile contracts.
37
means

39
 GE pleaded guilty 
5039
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40
and paid a fine of more than $1 million in the Minuteman case,
5040
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41
 which involved some of the same individuals and operations
5041
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42
 that are at the center of the dispute in the Philadelphia court.
41
elaboration-object-attribute-e

43
 In order to show 
5045
attribution

44
that all of its units had corrected billing problems
45
reason

45
 and therefore should become eligible again for new contracts, 
5044
span

46
prosecutors contend that 
47
attribution

47
high-level GE executives and company lawyers provided misleading statements to then-Air Force Secretary Verne Orr and other Pentagon officials during a series of meetings in 1985.
5046
span

48
 Overall, the government contends 
5049
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49
that GE's disclosure efforts largely were intended to curry favor with Pentagon officials
5049
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50
 without detailing the extent of the management lapses and allegedly pervasive billing irregularities 
5050
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51
uncovered by company investigations.
50
elaboration-object-attribute-e

52
 Prosecutors depict a company
5051
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53
 that allegedly sat on damaging evidence of overcharges from 1983 to 1985,
5052
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54
 despite warnings from an internal auditor.
53
concession

55
 When GE finally disclosed the problems, 
5055
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56
prosecutors contend 
57
attribution

57
that Mr. Orr was erroneously informed that the {suspected} practices had only just been discovered by GE management.
5054
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58
 In its brief, the government asserted 
5058
attribution

59
that it needs the internal GE documents 
5057
span

60
to rebut anticipated efforts by GE during the trial 
59
purpose

61
to demonstrate its good corporate character.
5057
purpose

62
 GE, 
5060
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63
which was surprised by the last-minute subpoena for more than 100 boxes and file cabinets of documents,
62
elaboration-additional-e

64
 countered 
5080
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that senior GE managers didn't find out about questionable billing practices until 1985,
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66
 and that the information was passed on quickly to Mr. Orr at his first meeting with company representatives.
5063
List

67
 Subsequent meetings,
5065
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68
 initiated after the company and two of its units were briefly suspended from federal contracts,
67
elaboration-additional-e

69
 were held 
5067
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70
to familiarize Mr. Orr with the company's self-policing procedures
5068
Same-Unit

71
 and to disclose additional information, 
5068
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72
according to GE.
5066
attribution

73
 GE's filing contends
74
attribution

74
 that the billing practices at the heart of the current controversy involved technical disputes rather than criminal activity.
5071
span

75
 The company's conduct does not even raise a question of wrongful corporate intent, ratification or cover-up, 
5073
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76
GE's brief asserts.
75
attribution

77
 On the contrary, it shows a corporation 
5075
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78
reacting swiftly and aggressively to very difficult issues in largely uncharted waters. 
77
elaboration-object-attribute-e

79
 Mr. Orr couldn't be reached for comment yesterday.
5033
elaboration-additional

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