Businessman Gets Probation for Bilking U.S.

The president of two Irvine-based defense firms was sentenced in Los Angeles federal court Monday to five years’ probation and ordered to perform 2,500 hours of community service after he pleaded guilty to submitting $53,000 in false billings to the Defense Department.

Thomas E. Snooks, 47, had faced a maximum prison sentence of 15 years for one count each of mail fraud, wire fraud and submitting false claims and statements to the government.

A June 6 indictment accused Snooks and his companies, Systems Engineering Technology Associates Corp. and an affiliate, SETAC Inc., of bilking the Department of Defense by submitting bills for phony consulting fees and misappropriated sick pay. The indictment also charged Snooks with an alleged $103,000 cost overrun on a contract with the Naval Surface Weapons Center in Dahlgren, Va.

The two Irvine companies specialized in designing combat simulations for pilot training for the Air Force, Navy and other defense agencies.

The firms had received about $5 million a year in military contracts since 1976, according to court records.

After the indictment, Snooks’ companies were suspended from a list of authorized defense contractors.

The companies are being acquired by SRS Technology Inc. of Newport Beach, a SETAC spokeswoman said.

A hearing on the penalties still faced by the companies was postponed until Nov. 22 by Chief U.S. District Judge Manuel L. Real, who also pronounced sentence Monday.

The firms, which have agreed to make restitution of $186,000 to the government, face $22,000 in fines, Assistant U.S. Atty. David Wiechert said.