Both of Boeing's sacked execs, Michael M. Sears and Darleen A. Druyun, were greatly respected in the aerospace industrial community and considered ethical people who ensured that everyone who worked for them "played by the rules," said a former senior Lockheed Martin official who regularly dueled with both.

Druyun, in particular, had a reputation for driving tough bargains and roasting defense and aerospace officials with equal vigor. In fact, several Pentagon officials who worked with Druyun scoffed at the idea she knowingly violated rules, citing her penchant for regulations. USAF officials also warn that the feisty Druyun may turn to legal action against Boeing if she feels the dismissal is wrongful.

The former Lockheed Martin official also said senior aerospace industry executives at Lockheed Martin and other companies routinely approached senior defense and military officials nearing retirement in terms of "after you retire, don't sign on with anyone else until you've talked with us."

To become a firing offense, "somebody had to have found specific information about [employment details in] their conversation," the official said. The discussions in question were in October 2002 and Druyun didn't disqualify herself from acting in her official government capacity on matters involving Boeing until Nov. 5, 2002, some two weeks later, said Boeing officials. They allege that "compelling evidence" of a cover-up of the misconduct (Sears and Druyun denied doing anything wrong) was discovered about three weeks ago. The company's board made the decision Nov. 23, 2003, to fire the pair.

Others with insight into the affair contend the firing is a result of growing pressure on Boeing's board of directors to show they are tough on any new ethical missteps. They believe Sears and Druyun are victims of the hardened attitude. While a string of e-mails between the pair appears to be innocent, for the board it has become an issue of perception, they said. Moreover, "the current mood of the Air Force is that they want people [at Boeing] to be punished," said a long-time Druyun associate. While not a fan of her acerbic personal style, he said "Darleen is an absolute straight arrow, but the Boeing board of directors felt they had to respond dramatically."

"At no time did I engage in conduct which I believed to be in violation of company policy," said Sears in a statement. "I am deeply disappointed the company took the action it did." However, he made no mention of legal action. Boeing, on the other hand, said Sears would lose some benefits because he had been fired for cause. That might make fighting the Boeing decision attractive to both Sears and Druyun. Druyun's attorney did not respond to a request for comment.

The government will likely have access to the Boeing investigation and use that data, as well as a Pentagon Inspector General review to determine whether to bring criminal charges against Druyun, says John Howell, an attorney at Dorsey & Whitney here. Proving a violation of the procurement integrity act could be challenging though, he noted, and could depend on how quickly Druyun notified her superiors of Boeing's employment overture.

Interesting enough, those with experience at senior corporate levels say it is rare that major companies hire the most senior defense department civilians and four-star generals "because they are used to having people at their beck and call," the former Lockheed Martin official said. "They want to give orders and they don't work well in the corporate environment."

Nonetheless, both Lockheed Martin and Boeing tried to hire Druyun and she recused herself from matters regarding both companies. But in a foreshadowing of the current crisis, senior Air Force officials advised Druyun to take the Lockheed Martin position, noting the seeming impropriety of her going to Boeing because of the KC-767 deliberations, according to current Air Force officials.

Several years ago, Lockheed Martin found itself in a position similar to Boeing's, with several of its activities in question, resulting in a nasty exchange between Druyun and top Lockheed Martin executives.

"The government comes down on you like a ton of bricks," the former Lockheed Martin official said. "The Air Force was going to debar the whole corporation. We had to have ethics surveys and reports on what we were doing and how we were training people. Contracts were put on hold, and we had to go beg for forgiveness. It was a huge undertaking and we were on probation for three years.

"THE AIR FORCE WANTED to leave no person unpersecuted," he said. "They wanted to see a hanging list of names and how they would be punished. Now Boeing is in a world of hurt. The Air Force needed a goat. Picking Darleen was easy [because she was a relatively new employee and had made enemies both in industry and the Air Force -- where she was known as the Dragon Lady -- over the years because of her combative style]. Sears was the surprise. In all our head-to-head competitions with him, we never knew him to act improperly."

Several Pentagon officials believe the dual dismissals had more to do with trying to placate a Defense Dept. customer enraged over Boeing ethics problems -- in particular, the Evolved Expendable Launch Vehicle case -- in which the company was found to have possession of tens of thousands of Lockheed Martin proprietary documents on its EELV offer. The July 2003 suspension already has lasted longer than Pentagon officials first estimated. Boeing took several small steps to address the government's concerns, such as ordering an ethics review for all employees and an independent investigation -- which eventually led to the Sears and Druyun firings -- but the company remained suspended. With the next round of EELV competition drawing nearer, corporate officials may have felt more drastic action was needed to regain government favor, an Air Force officer said.

The ethics controversy isn't likely to go away quietly, either. In addition to a continuing Pentagon inspector general investigation, Sen. John McCain (R-Ariz.), who has been sharply critical of Boeing because of the proposed lease of KC-767 tankers and over EELV, has announced his intent to hold hearings next year to investigate the "revolving door," the common phenomenon of senior Pentagon officials immediately finding positions within the defense industry. McCain will try to address the issue in the Senate Armed Services Committee or, if that effort fails, will use the Commerce Committee he chairs as a platform.