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National Aeronautics and Space Administration
Office of Inspector General
Washington, D.C. 20546

June 19, 2003

RELEASE 2003-039: NASA AND DOD CONTRACTORS AND SOME KEY CONTRACTOR 
EMPLOYEES FOUND GUILTY OF CONSPIRACY AND MAKING FALSE STATEMENTS 

On May 7, 2003, following a criminal trial, a jury in the Central
District of California returned a guilty verdict against RAM 
Enterprises, Inc. (RAM), president Richard Monstein, and RAM quality 
assurance manager Timothy Gordon.  A guilty verdict was also returned 
against Precision Components, Inc. and its president David Erickson.  
The companies and these employees were found guilty on a combined
total of 19 counts of Conspiracy, Fraud Involving an Interstate
Carrier, and False Statements to the U.S. Government.

RAM provided counterfeit electrical contacts to NASA and other 
Government agencies by stamping contacts with another manufacturer's 
logo and physically altering other electrical contacts to resemble
U.S. Government-approved contacts.  The altered contacts were later
sold to NASA and other Government contractors.  These counterfeit
electrical contacts were used in applications associated with NASA's
International Space Station and F-16 programs, various Department of
Defense aircraft and weapon systems, and industrial land and sea
generators. 

Monstein, Gordon, and Erickson are facing a maximum sentence of up to 
10-years in prison and RAM and Precision Components could be placed
on probation for up to 5-years and ordered to pay fines as high as
$1 million.  

Special Agents of the NASA Office of Inspector General, the Defense 
Criminal Investigative Service, the Federal Bureau of Investigation, 
the U.S. Army Criminal Investigation Command, the U.S. Air Force
Office of Special Investigation, and the Department of Transportation
Office of Inspector General conducted the investigation.  Assistant
U.S. Attorney Lawrence S. Middleton, Central District of California,
Los Angeles, California, is handling the prosecution.

For more information on this release, please call Joe Kroener, Acting 
Executive Officer, NASA Office of Inspector General, at 202-358-2558. 

Previous Releases: 

2003-017, "New Indictments in Counterfeit Parts Scheme"
http://www.hq.nasa.gov/office/oig/hq/press/pr2003-017.html
2002-087, "NASA Contractor Indicted for Conspiracy and False 
Statements"

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including published reviews, audit reports, inspection/assessment
reports, press releases, and other publications, please access our
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Report Crime, Fraud, Waste, Abuse, and Mismanagement to the NASA OIG
Hotline at:  800-424-9183, TDD 800-535-8134.

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