CHICAGO Boeing fires CFO over ethics violations

Investigators are scrutinizing a recent deal to build tankers for the military.
CHICAGO (AP) -- In another black eye for its growing defense business, Boeing Co. dismissed its chief financial officer for a breach of ethics just four months after the Pentagon punished it for stealing trade secrets from rival Lockheed Martin to help win rocket contracts.
The dismissal Monday of Mike Sears comes with Defense Department investigators still looking into the circumstances behind the government's newly approved deal to acquire 100 Boeing 767 planes for use as midair refueling tankers.
Analysts said it also could complicate Boeing's efforts to clear its name with the military and be allowed to bid again on satellite-launching contracts, following an indefinite ban that remains in effect from July's penalty and has already cost it seven launches worth about $1 billion.
"This came at a very inopportune time, probably just about when they'd done all their mea culpas and all their investigations and everything else that was necessary to have the suspension lifted," said Paul Nisbet of JSA Research.
Questionable decision
Boeing said it fired Sears for negotiating last year to have the company hire Darleen Druyun at a time when she was working as a senior Air Force procurement official and thus in a position to influence Boeing contracts.
Druyun, who ultimately was hired last January as vice president and deputy general manager of Boeing's Missile Defense Systems unit, was dismissed along with Sears. The company said an internal review also found that both attempted to conceal their misconduct.
"When we determine there have been violations of our standards, we will act swiftly to address them, just as we have today," chairman and CEO Phil Condit said.
The company continued to maintain it committed no wrongdoing during the leasing-plan process.
Criticism of the tanker deal escalated this fall when documents revealed that Druyun, then the principal deputy assistant Air Force secretary for acquisition and management, told Boeing that Airbus had submitted a bid $5 million to $17 million less per plane than Boeing's offer.