He admitted in court that Unisys employees had written the reports, none longer than five sentences, and given copies of them to him to place in his files.
The company added that it was putting six Unisys employees on administrative leave while determining whether they had engaged in improper activities.
Mailed out over the Senator's signature, the letters were actually written by Unisys employees.
The indictment says the letters were actually written by Unisys employees and copied onto the Senator's stationery.
It is not clear whether Army personnel or Unisys employees are the subject of the criminal investigation.
The firm, he said, was retained by a former Unisys employee who has been convicted in another military- procurement case.
The cash offer from Loral was superior financially and from the perspective of the 8,500 Unisys employees affected by the sale, he said.
Instead the reports, never longer than a few sentences, were written by Unisys employees and given to Mr. D'Amato to place in his work file.
As part of the settlement, all Unisys employees were required to receive ethics training each year, a practice that continues today.
Earlier this month, other Unisys employees won a victory against the company on another benefits issue.