Cubic on Monday acknowledged that its Defense...

Cubic on Monday acknowledged that its Defense Systems subsidiary is a “target” in the Department of Justice’s investigation into defense procurement fraud. Cubic in the past has acknowledged only that Cubic executive vice president Colvin C. (Sam) Wellborn, who retired Friday, was a target of the investigation.

Federal investigators told Cubic on May 31 that it was a target in the investigation, according to a prepared statement released Monday by Cubic chairman Walter J. Zable. Cubic will “continue to cooperate with government officials in this matter,” said Zable, who added that “we believe that we have not committed any improprieties.”

In a related announcement, Zable said that George Tweed, vice president and chief operating officer of the Defense Systems division, will replace Wellborn until a permanent replacement is hired.

“We are confident that we will be able to meet all customer commitments under this interim structure,” Zable said. Tweed has more than 20 years’ experience in the defense industry, according to Zable.