The State - News from Aug. 3, 1986

Three Silicon Valley men have been indicted by a federal grand jury in an alleged kickback scheme involving subcontracts on two new Army personnel carriers. An 18-month-investigation into allegations that bribes were being paid in exchange for subcontracts on the two vehicles resulted in the indictments of Ray Dorsa, 40, Ronald Gianelli, 36, and Lajos Leka, 56. The three were charged with mail fraud, paying or receiving kickbacks and conspiracy to defraud the U.S. government. Gianelli was formerly a supervising buyer for FMC Corp. of San Jose, a defense contractor handling the controversial new Bradley Fighting Vehicle and the M-113 Armored Personnel Carrier projects. FMC cooperated in the investigation, officials said. Gianelli allegedly received $161,297 from Leka’s metal shop in exchange for awarding local business subcontracts to Leka’s shop and at least one other local business. The indictment also charged Gianelli with “bumping up” bid prices. Dorsa, a San Jose lawyer, allegedly received a portion of the $161,297.