AURORA | Federal prosecutors say an Aurora company hoping to score a pricey intelligence contract from the federal government engaged in some espionage of their own.
In a statement Tuesday, the United States Attorney’s Office in Denver said Paragon Dynamics, Inc., an Aurora-based defense contractor, agreed to pay $1.1 million to settle allegations that it improperly obtained bid and proposal information from a competitor, Raytheon Corp., on contracts to work on federal intelligence satellites.
“Corporate espionage erodes the trust we have in our public procurement system, and the Department of Justice will hold cheaters accountable for their actions,” United States Attorney for the District of Colorado John Walsh said in the statement.
According to prosecutors, from February 2008 to August 2009, Raytheon was competing to win contracts for the National Reconnaissance Office, the federal agency in charge of America’s intelligence satellites.
An employee from Paragon had access to a Raytheon facility in Aurora and used that access to grab entire drafts of Raytheon’s proposals for two separate contracts, as well as other information. The employee faxed part of the proposals to the president of Paragon, a move caught on video by Raytheon’s security cameras.
Federal investigators found other Raytheon documents on the Paragon employee’s computer, prosecutors aid.
Officials at Paragon did not immediately return a call for comment Tuesday.