Wedtech to Liquidate Operations, Press Lawsuits

NEW YORK —  Bankrupt Wedtech Corp., a Bronx defense contractor at the center of an influence-buying scandal that has reached to Washington, said Friday it was liquidating its operations and will keep only a small staff to press lawsuits against former officials.

Martin Pollner, attorney for the company’s new management, said the sell-off of Wedtech’s assets will be supervised by a federal bankruptcy court.

Core Staff

All that will remain of Wedtech will be a core staff of employees to attempt to recover assets, pursue 10 lawsuits against the company’s former management and aid in criminal investigations.

“To all those who stole, embezzled, bribed or extorted money from the company, our firm has a broad mandate from new management to continue to vigorously investigate, prosecute and recover those looted assets,” Pollner said in an interview.

“We will also continue to turn over to the U.S. attorney, the special prosecutor and the FBI all evidence of wrongdoing we uncover in our investigation,” he said.

The new management, which took over the company in December, 1986, proposed in U.S. Bankruptcy Court that its ordnance and small engines divisions would be sold to an unidentified firm that has pledged to keep the profitable operation in the Bronx and to rehire Wedtech employees who worked for the company before the new management announced massive layoffs early this year, Pollner said. The divisions’ contracts with the Defense Department helped the company to mushroom into a $100-million operation in only five years.

Indictments Result

Investigations of influence-peddling by former Wedtech officials have resulted in indictments against former White House aide Lyn Nofziger and Rep. Mario Biaggi (D-N.Y.) and a federal special investigation of Atty. Gen. Edwin Meese III.

Four top Wedtech officials who were forced out early this year pleaded guilty to bribery and grand larceny charges and began cooperating with state and federal investigations of the firm.