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By Laila Kearney

Sept 24 (Reuters) – A former aircraft maintenance director

has pleaded guilty to misleading the U.S. Forest Service to help

his company win a $20 million contract in a case linked to the

deadliest helicopter crash involving on-duty firefighters in

U.S. history.

The 2008 incident near Weaverville, in Northern California,

killed seven firefighters on board the helicopter as well as the

pilot and a U.S. Forest Service official.

Levi Phillips, 46, pleaded guilty on Monday to one count of

conspiring to defraud the Forest Service by creating false

weight, balance and performance information for firefighting

helicopters while he was employed as head of maintenance for

Oregon-based Carson Helicopters Inc, according to court

documents.

As part of a plea deal entered in U.S. District Court in

Medford, Oregon, Phillips will testify against the company’s

vice president, Steven Metheny. Prosecutors say Metheny led the

defrauding scheme.

Phillips, an Oregon resident, faces up to 20 years in prison

when he is sentenced on April 14.

His attorney, federal public defender Brian Butler, did not

return calls.

Phillips and Metheny were indicted by a federal grand jury

in January, the U.S. Attorney’s Office for the District of

Oregon said in a statement.

Metheny was charged with more than 20 criminal counts,

including mail and wire fraud, making false statements to the

forest service, endangering the safety of aircraft in flight and

theft from an interstate shipment, according to a statement by

the U.S. Attorney’s Office for the District of Oregon. His trial

is set to begin on March 4.

Carson Helicopters won a $20 million contract in April 2008

to provide helicopters and related services to the Forest

Service, according to the indictment against the two men.

Phillips in his plea agreement said that to win the

contract, he and Metheny intentionally provided false

information about their helicopters such as maximum payload

capacity.

The faulty data was used by pilots to conduct flights, the

court papers said.

In August 2008, a Sikorsky S-61N helicopter from the men’s

firm swiped a treetop in Northern California during takeoff and

plummeted in the crash that killed seven firefighters, the pilot

and the forest service official. A co-pilot and two firefighters

survived.

An investigation by the National Transportation Safety Board

showed the pilot had followed a Carson Helicopters manual, which

was not approved by the helicopter’s manufacturer or the U.S.

Forest Service and had false weight and takeoff power charts.

(Editing by Alex Dobuzinskis, Barbara Goldberg and Philip

Barbara)