The Federal Election Commission imposed a civil penalty of $27,000 on Lockheed Martin Employee’s PAC for failing to accurately account for and report disbursements and failing to disclose receipts. The committee failed to accurately disclose operating expenditures as a result of an embezzlement scheme perpetrated by Kenneth Phelps, a deputy manager and treasurer for the PAC. Phelps pleaded guilty in July 2007 to wire fraud and making false statements to the FEC. He admitted that from about January 2002 until December 2003, he took approximately $160,000 in Lockheed PAC checks and wrote the checks to himself instead of to federal political candidates or campaigns and deposited those checks into his personal bank account. In October 2007, Phelps was sentenced to 16 months in prison and ordered to pay $163,116 in restitution and a special assessment of $2,400. Lockheed’s PAC, which collects donations from employees, is among the most active defense contractor political action committees. See related misconduct instance, “Embezzlement of PAC Funds.”