20 - MANCIIKSTKH HKRALD, Thursday, Dec. 20, 1984 Veliotis accused General Dynamics, fled Business MANCHESTER FOCUS SPORTS F^ditor's note: This is the fourth of a conversation, 1 started passing phone The company, .seeking to recover vice president’s post and a seat on the five-part series on the controversy calls through the tape recorder so that I kickbacks Veliotis and his former company’s board of directors. Rick­ In Hay much in demand Campers eat heartily EC girls basketball Sleet, rai surrounding the nation's largest de­ could raise the volume and hear them assistant allegedly took, won court over was ordered to retire. fense contractor. better,” Veliotis told United Pre.ss orders freezing about $2 million of his In early 1982, former Frigitemp at Manchester High during winter hiking wins first of year rain end; International Athens correspondents assets, including his .stately home in President Mervyn Silver and other SNET increases dividend By Andrew Gallagher James Dorsey and John Rigos. Veliotis Milton. Mass. General Dynamics al­ company officials testified in bank­ ... page 4 ... page 13 page 11 and Gregory Gordon saved the tapes. leges the kickback money was added on ruptcy depositions that the company NEW H AVEN — Directors of Southern New United Press International Since leaving the country months to Frigitemp’s contract prices. passed kickbacks — later identified as England Telephone Co. have voted to increase the before his indictment on charges he Veliotis’ allegations — and evidence going to officials of General Dynamics, quarterly dividend on the company’s stock by 2 took $1.35 million in unrelated kick- of kickbacks to officials of two other cents to 68 cents per share. W ASHINGTON — Described by Lockheed Aircraft Corp. and Litton backs, Veliotis bas not hesitated to use major Pentagon shipbuilders — may Industries’ shipbuilding divisions — This action raises the annual dividend rate to business acquaintances as arrogant them to his advantage. never have surfaced if it had not been $2.72 from $2.64. The next quarterly dividend will and condescending. P. Takis Veliotis and falsified bookkeeping records. While living in an elegant-home and for the financial collapse of Frigitemp. Silver said the firm was looted by its be payable, at the new rate, on Jan. 15, 1985 to readily admits to only one fault — his taking forays on his yacht, he has When the company fiied for bank­ shareholders of record on Dec. 24, partial deafness — perhaps because he officers, notably chairman Gerald Lee, played a cat-and-mouse game with ruptcy in 1979, court-appointed trustee who ran up enormous gambling debts cannot conceal his hearing aid. federal prosecutors, congressional in­ Lawson Bernstein plumbed Frigi­ Veliotis, a fugitive living in Athens, and squandered company funds to FmHA reports operations vestigators and even members of the temp’s records and turned up evidence cover some of them. Greece, says his ailment is a major news media by timing release of the it had set up fictitious companies and The Farmers Home Administration helped 528 source of the trans-Atlantic headaches Once, Silver said, he tracked Lee to a tapes to keep General Dynamics in the filed with several shipbuilders phony Connecticut residents obtain improved housing MmthtBtn MrralJi he has caused for the General Dynam­ Las Vegas casino, found him wearing headlines. vouchers for work never performed. opportunities through its single-family and rental Manchester. Conn. — A City ofDf Village Charm * prjcgy ?1, ics Corp., which he once faithfully “ the look of a man that had just Federal law enforcement officials Bernstein unraveled evidence that suffered a breakdown,” and disco­ programs during the 1984 fiscal year, State served and agtiinst which he now has suspect Veliotis, 58, is seeking to barter Frigitemp’s top officers had skimmed turned bitterly. vered he had lost $250,000 at the tables Director Everett C. Paluska reported. his testimony for immunity from the company’s assets, and a federal in about a week. The assistance totaling $23,224,560 was made Veliotis maintains he innocently prosecution on the 1983 indictment grand jury investigation soon began. piped telephone conversations with top Testimony from Silver and Lee, in under programs to a.ssist families who are alleging he and his top aide shared in Meantime. Veliotis, an engineer with corportite officials through a tape return for leniency on guilty pleas, without safe, decent and sanitary housing and $2.7 million in kickbacks from a degrees from three universities, was recorder to boost the sound level. pointed investigators toward Veliptis who need credit but cannot obtain it from subcontractor, the now-defunct Frigi- climbing the corporate ladder. Both Armed with the tapes in the face of an and his a.isistant at Quincy. James commercial sources. temp Corp. supporters and detractors of his Gilliland, who Veliotis brought with Paluska said that during the 12 months ending Soviets confirm unrelated criminal indictment, he has The kickbacks allegedly were deli­ tempestuous style concede he turned accused GD chairman David Lewis him from their previous jobs in Sept. 30, Fm H A provided 349 single family home vered in return for $44 million in around seemingly impossible subma­ and other company officers of fraud Canada. ownership loans totaling $16,917,990, repair contracts awarded by General Dynam­ rine construction delays at the Electric and deceiving shareholders about On May 7. 1982, Veliotis abruptly loans/grants totaling $55,680 and six rental ics to Frigitemp while Veliotis headed Boat .shipbuilding division at Groton. nuclear submarine cost overruns, resigned from General Dynamics. He housing loans totaling $6,250,890 which provided the company’s Quincy, Mass,, ship­ Promoted in 1977 to general manager delivery delays and illegal gratuities. soon left the country for his native 161 housing units. yard from 1973 to 1977. of the yard with the blessing of Navy Almost single-handedly, he has Greece. Company officials said it was Veliotis has broached the subject of Adm, Hyman Rickover, Veliotis fired about that time that they learned Ustinov’s death drawn the nation's largest defen.se immunity in conversations with pro­ 3,000 of the firm’s 26,000 workers the contractor into the buzz-saw of eight Veliotis had invoked the Fifth Amend­ secutors who have flown several times day he arrived. He cracked the whip to federal investigations, including a ment when called before a federal Arnold elected chairman MOSCOW (UPI) - Defense Supreme Soviet, or parliament. Columns inside was being pre­ to Athens, but Justice Department quiet Rickover’s complaints of shoddy grand jury probe. grand jury in New York. Mini.ster Dmitri Ustinov, who built Gorbachev’s announcement was pared for a funeral for Ustinov officials are reluctant to concede workmanship. H A R TFO R D — Charles G. Arnold, chairman General Dynamics has categorically The alleged link was George Davis, a and chief executive officer of the Homer D. up the Soviet armed forces in the the first official word the veteran Monday. The worker said he died freedom for an indicted defendant. However. Veliotis al.so stopped the denied the allegations, but law enforce­ senior vice president for Frigitemp la.st eight years, has died, it was Soviet military leader had died. It Wednesday. Denying the kickback allegations, traditional gift-giving to Rickover, who Bronson Co., has been elected chairman of the ment sources call the tapes "hard who had known Veliotis in Canada. officially announced today. was heralded by the decision of Since the death of Brezhnev in Veliotis says immunity is not his chief investigators have found was "laund­ Connecticut Business and Industry Association evidence " and say investigators have Veliotis and Gilliland were indicted for a one-year term beginning Jan. 1, 1985. "We have had a tragic loss. The Gorbachev and his delegation to November 1982. Ustinov had goal. He as.serted he mainly wants ering" valuable items to members of Sept. 6, 1983. found corroboration for some of revenge over Lewis and other GD Arnold succeeds David E.A. Carson, president minister of defense. Dmitri Us­ fly home more than 24 hours emerged as a political kingmaker, Veliotis' accusations. Congress to promote his nuclear Gilliland, who al.so fled the country, tinov," said the Kremlin’s second earlier than scheduled. using his position as chief of the officials he says blocked him from the program. of People’s Bank, as chairman of the state’s Emergence of the controvcr.sy is a walked away from British authorities in command, Mikhail Gorbachev There was still no announcment defense establishment and a senior company chairmanship. Two months later. Rickover asked largest business group. tale of happenstance involving Veliotis' last February while free on .50.000 Two vice chairmen were also elected by the in Edinburgh. Scotland, before by the official Soviet news agency Politburo member to help thrust "All I need is safe conduct to go and the Justice Department to investigate pounds bond. Last weekend, he was surreptitious recordings, his later rift testify," he said, expressing confi­ board at its meeting Tuesday in Bridgeport. They cutting short a visit to Britain to fly Tass or other media. Radio and both the late Andropov and current allegations the company had filed false nabbed in Ireland, a month after the home to Moscow. with the company and the corruption- dence it would be granted. are William F. Andrews, chairman and president television programming, which leader Konstantin Chernenko into triggered bankruptcy of a General claims against the government. U.S. and Irish justice departments Speaking at a hastily convened traditionally plays somber music the Kremlin’s highest position. "If my testimony is requested, I will Relations between the two soured of Scovill Inc., and Anthony S.