WASHINGTON -- As head of the Food and Drug Administration, Lester Crawford oversaw a federal agency that regulates products that account for an estimated 25 cents of every dollar spent each year by U.S. consumers.

At the same time, Crawford, through his broker, oversaw an investment portfolio that included tens of thousands of dollars in shares in food, beverage and medical device companies regulated by the very federal agency he ran.

Crawford knew what he and his wife owned, but still failed to fully disclose that information as required by federal law, the Justice Department said in court papers charging him with filing false financial disclosure forms and conflict of interest. In some cases, Crawford even assured federal ethics officers that he and his wife had sold stock in FDA-regulated companies that the couple in fact continued to hold, according to the papers.

Because of that, the former FDA commissioner was set to plead guilty Tuesday to the two misdemeanor counts, said his attorney, Barbara Van Gelder. She said Crawford would not dispute the federal government's claims under the plea agreement.

A fine is likely, though the two counts each carry a maximum penalty of one year in prison.

"At the end of the day, he owned these stocks and he will admit he owned them while he was at the FDA and he will take responsibility for that," Van Gelder said.

Crawford and his wife owned stock in Pepsico Inc., Sysco Corp., Kimberly-Clark Corp., Wal-Mart Stores Inc. and other companies that fall under the regulatory control of the agency, the Justice Department said in accusing the former FDA commissioner of making a false writing. Crawford's ownership of those shares was prohibited under federal regulations, since the companies are considered to be "significantly regulated" by the FDA.

The Justice Department also accused Crawford of conflict of interest, charging that as chairman of an FDA panel studying the problem of obesity, he and his wife owned at least $140,000 in stock in Pepsico, the mammoth snacks and drinks company, and Sysco, a major food distribution company.

Both companies had a stake in the outcome of the panel's recommendations, which included a proposal that would require companies to more prominently display calorie information on food and drink labels.

The papers also say Crawford failed to disclose his income from exercising stock options in Embrex Inc. of Research Triangle Park, N.C., an agriculture biotechnology company. The failure to disclose came even as Crawford properly reported his earnings from stock sales on his tax returns. Crawford had been a member of Embrex's board of directors, according to federal filings.

Crawford, a veterinarian and food-safety expert, abruptly resigned from the FDA job in September 2005 but gave no reason for his decision to step down. He had held the top position for just two months, following his confirmation by the Senate, but had been acting head of the agency for more than a year.

Crawford refused to take a reporter's telephone call at Policy Directions Inc., the lobbying firm where he now works. FDA spokeswoman Julie Zawisza declined to comment.

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