Sentencings

San Diego Business Journal, May 17, 2004 by Rene'e Beasley Jones

Sentencings: Science and Applied Technology, Inc. and its owner and president, Parthasarathi Majumder, were sentenced in U.S. District Court in San Diego after entering guilty pleas to charges of conspiracy and illegal campaign contributions.

Majumder was sentenced April 28 to serve six months in custody and three years of probation, according to a press release from U.S. Attorney Carol Lain. Sentencing SAT to a term of five years' probation, Judge M. James Lorenz did not impose any fine because the company agreed to pay the government more than $3 million to settle a related civil lawsuit brought by the U.S. Attorney's Office.

SAT was a federal contractor in the defense field. Minnesota-based Alliant Techsystems bought SAT in October 2002.

During the prosecution, Majumder admitted that from 1993 to 1998 he used about $75,000 in corporate funds to make campaign contributions to U.S. Sen. John Kerry of Massachusetts, who will challenge President Bush in November; U.S. Rep. Randy Cunningham, R-Escondido; and U.S. Rep. Duncan Hunter, R-Coronado.

Lam said Majumder's sentencing did not implicate the elected officials in criminal activity. An investigation did not show any evidence that they were aware of the illegal activities of SAT and Majumder.

Also, Paul Yates was sentenced for his role in the fraudulent operation of International Forex of California and Earthwise International two La Julia-based companies that solicited the public to invest in a managed currency account that purportedly traded in foreign currencies, Lam's office said.

Yates, of Carlsbad, was sentenced in U.S. District Court on April 28 to 78 months in prison and ordered to pay more than $6 million in restitution.

The scheme's leader, William F. McCray, was also convicted and will be sentenced on June 28.