Although several other people involved were discharged, Druyun kept her position. In 2000 Druyun sent the resumes of her daughter, a recent college graduate, and her daughter's fiancé, a published PhD Aeronautical Engineer, to Boeing and both were hired.
Although this was a conflict of interest, it was not illegal. The investigation into her illegal activities was spearheaded by Senator John McCain.
In December 2003, the Pentagon announced the project was to be frozen while an investigation of allegations of corruption by Druyun (who had moved to Boeing in January) was begun. Druyun pleaded guilty to inflating the price of the contract to favor her future employer and to passing information on the competing Airbus A330 MRTT bid (from EADS). In October 2004, she was sentenced to nine months in jail for corruption, fined $5,000, given three years of supervised release and 150 hours of community service. She was released from prison on September 30, 2005. The ramifications extended to Boeing CFO Michael M. Sears, who was fired from Boeing, and Boeing CEO Phil Condit resigned. On February 18, 2005, Sears was sentenced to four months in prison. Boeing ended up paying a $615 million fine for their involvement. According to The Federal Times, Darleen Druyun will still be receiving a federal pension.