Kenneth D. Phelps III, the former deputy manager and treasurer for Lockheed Martin Employee’s PAC, pleaded guilty to wire fraud and making false statements to the Federal Election Commission. 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. In August 2006, the FEC imposed a civil penalty of $27,000 on the Lockheed Martin PAC for failing to accurately account for and report disbursements and failing to disclose receipts, oversights that were caused by Phelps’ conduct. See related Lockheed Martin misconduct instance, “Federal Election Law Violation.”