Scandal Rocks GE: The firm pleads guilty to bilking the Air Force

The firm pleads guilty to bilking the Air Force out of $800,000

"We bring good things to life," say the commercials for General Electric, a company that strives to maintain a wholesome image based on quality products and service. But an unsavory side of the ninth-largest U.S. industrial corporation stood exposed last week in a federal district court in Philadelphia. GE pleaded guilty to defrauding the Air Force of $800,000 in 1980 on a project to upgrade the re-entry vehicles on Minuteman missiles. After its indictment eight weeks ago, GE had consistently denied any wrongdoing. The company suddenly changed its story last week on learning that Roy Baessler, a manager on the Minuteman...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!