1 A former top official at American Honda Motor Co. pleaded guilty Tuesday to racketeering and mail fraud as he was about to go on trial in a nationwide kickback investigation.
2 Stanley Cardiges, 49, of Laguna Hills, California, also pleaded guilty to conspiracy to commit mail fraud.
3 Under the plea agreement, Cardiges faces up to 35 years in prison and a fine of up to dlrs 1 million. He had faced up to 40 years in prison if he had been convicted on a larger number of charges, including witness-tampering.
4 The plea came as jury selection was to begin for Cardiges; John Billmyer of Raleigh, North Carolina; and Dennis Josleyn of Penn Valley, California.
5 Before Tuesday, 15 other former Honda and Acura executives, two former dealers, an advertiser and a lawyer had already pleaded guilty to charges including racketeering, perjury and mail fraud.
6 Prosecutors allege that dealers in 30 states gave the defendants and other former executives of American Honda a total of dlrs 15 million in cash, Rolex watches, fur coats, Mercedes-Benzes, furniture, expensive suits and college tuition.
7 In return, dealers allegedly were given lucrative franchises and scarce Hondas and Acuras that could be sold for dlrs 3,000 above sticker prices.
8 Federal prosecutors alleged that Cardiges, Honda's top sales executive from 1988 to 1992, received the bulk of the goods, including five Rolex watches, six cars, a woman's fur coat, dlrs 1,000 business suits and dlrs 25,000 in furniture.
9 The case unfolded in New Hampshire because a dealer in Concord and Manchester sued Honda, claiming he had been treated unfairly. Allegations of graft during the federal trial prompted the judge to ask for a criminal investigation.

Under the plea agreement , Cardiges faces up to 35 years in prison and a fine of up to dlrs 1 million . He had faced up to 40 years in prison if he had been convicted on a larger number of charges , including witness - tampering .
witness - tampering
How did he tamper with witnesses?