Aalice.449
net.space
utzoo!decvax!duke!chico!harpo!mhtsa!alice!sjb
Thu Jan 28 18:07:36 1982
Indictments Handed Down
Indictments against three executives and two firms have been
handed down by Grand Juries charging that they conspired to
defraud the government on construction costs for the space
shuttle.  One company, Mayfair Construction Co., has already
pleaded guilty, faces a $10,000 fine for its actions, but
has reached an agreement with the Justice Department under
which it won't be charged with any criminal dealings with
the other two companies, Capital Communication Corp. and
New World Construction Co., or with the three executives,
Phillip W. Akwa, Arthur L. Boschen, and James T. White, Jr.,
in return for its guilty plea.

Mayfair had been given four contracts totaling $13 million to build
ground support for the STS program.  Capital worked jointly with
Mayfair, while Mayfair subcontracted New World.  The defendants
``hid their profit-sharing arrangements from NASA'' and planned to
inflate costs, hours, and labor to NASA.