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

April 1, 2003

RELEASE 2003-028: FORMER NASA SUBCONTRACTORS INDICTED IN GOVERNMENT
KICKBACK SCHEME

On March 20, 2003, Robert Strom and Thomas Costas were indicted by a
federal grand jury in U.S. District Court, Trenton, New Jersey, for
their roles in an alleged government contract kickback scheme.  Both
were indicted for one count of conspiracy to pay kickbacks and one
count of filing a false tax return.  These indictments are the latest
action in an on going criminal investigation, in which eleven other
individuals have already pled guilty. 

Strom and Costas, former principals of Action Reprographics Inc.,
located in New York, New York, were indicted for allegedly paying
kickbacks totaling over $1.3 million to Frederic DiNonno, an employee
of Ebasco Services, Inc. In return, DiNonno arranged for Action
Reprographics to receive over $24 million worth of commercial and
government graphics and printing contracts from Ebasco.  During the
time of these kickback payments, Ebasco had approximately $39 million
worth of contracts with NASA. 

Special Agents of the NASA Office of Inspector General, the Defense
Criminal Investigative Service; the Environmental Protection Agency
Office of Inspector General; the U.S. Postal Service Office of
Inspector General; the Internal Revenue Service Criminal
Investigative Division; and the Investigative Support Branch of the
Defense Contract Audit Agency conducted the investigation.  Robert A.
Farkas, Assistant United States Attorney, District of New Jersey,
Trenton, New Jersey is handling the prosecution. 

Previous Releases:
2001-051, 03/23/01 - Three Plead Guilty in Government Kickback Scheme

2001-095, 09/13/01 - Former Contractor Employee Pleads Guilty

2002-013, 10/26/01 - NASA Subcontractor Pleads Guilty in Kickback
Scheme

2002-033, 01/03/02 - Former NASA Subcontractors Plead Guilty in
Government Kickback Scheme

For more information on this release, please contact Joseph Kroener,
Acting Executive Officer, NASA Office of Inspector General at (202)
358-2558. 

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