On March 20, 2003, Herco Aircraft Machine, Inc. (Herco) pled guilty to
one count of mail fraud in the U.S. District Court, Western District of
Texas, San Antonio Division. Herco was indicted on September 4, 2002.
Herco manufactures aircraft parts for both government and commercial
aircraft. Herco manufactured adapter plate assemblies that were
substandard and not in compliance with all required specifications.
The Herco adapter plate assemblies are used on the Northrop Grumman T-
38 and F-5 aircrafts. NASA uses Herco assemblies in its T-38 astronaut
training aircraft. Sentencing is scheduled for April 17, 2003.

This investigation was conducted by the NASA Office of Inspector
General, Defense Criminal Investigative Service, U.S. Postal Service
Office of Inspector General, U.S. Air Force Office of Special
Investigations, Federal Bureau of Investigation, and the U.S.
Department of Transportation Office of Inspector General. Assistant
U.S. Attorney Kelly Loving, Western District of Texas, San Antonio, is
handling the prosecution.

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

Previous Releases:
2002-092