Roberta L. Gross                                           February 22, 2000
Inspector General
(Phone: 202/358-1220)

Samuel A. Maxey
Assistant Inspector General for Investigations
(Phone: 202/358-1233)

RELEASE:   2000-033

NASA Contractor Sentenced for Fraud

On February 16, 2000, Olson Associated of Daytona Beach, Inc. (Olson), was
sentenced in U.S. District Court, Orlando, FL, and ordered to pay $885,519
in restitution to the National Aeronautics and Space Administration (NASA)
and a special assessment of $200.

On November 17, 1999, Olson pled guilty to a one count criminal information
for violating the Major Fraud Act, Title 18, United States Code,
Section 1031.  An investigation disclosed Olson devised a scheme to defraud
the United States in order to obtain money or property by means of false and
fraudulent pretenses, representations, and promises.

Olson was created by Olson Electric Company, Daytona Beach, FL, in order to
obtain small business set-aside contracts at Kennedy Space Center (KSC), FL.
Olson falsely certified it was a Small Woman-Owned Business in order to
obtain a $3.2 million NASA subcontract to refurbish Shuttle Launch Pad 39A
at KSC.  The firm then entered into management agreements with Olson
Electric Company to perform the contract.  The bid submitted by Olson was an
identical match to the government's independent in-house estimate.  Olson
was also awarded a NASA subcontract, valued at $850,000, to perform
electrical modifications at KSC.  In furtherance of the scheme to defraud,
Olson submitted numerous false claims under the two subcontracts resulting
in overpayments totaling approximately $885,519.

The investigation was conducted by Special Agents of the NASA Office of
Inspector General, Office of Criminal Investigations and the Federal
Bureau of Investigation.  The prosecution was handled by Assistant United
States Attorney Gregory N. Miller, Middle District of Florida, Orlando
Division (407) 648-7500.

- End -

Complaints May Be Referred To The NASA OIG Hotline At:

News Release

National Aeronautics and Space Administration
Office of Inspector General
Washington, DC 20546