NASA OIG: K-3 Systems Pays Government $150,000 in NASA Research Grant Fraud Case

On November 13, 2002, K-3 Systems, Inc. of Darien, Connecticut, agreed
to pay $150,000 to the U.S. Government to settle a civil claim
pursuant to the False Claims Act. By entering into this agreement, K-3
made no admission of violating the False Claims Act.

The case involved alleged fraud in obtaining a NASA research grant to
develop a three dimensional echocardiograph machine capable of being
operated during space flight and representations made to NASA by K-3
during the course of the performance of the grant that were alleged to
be fraudulent and materially misleading.

Special Agents from the NASA Office of Inspector General’s Office of
Investigations conducted the investigation. Assistant United States
Attorney Alan M. Soloway, District of Connecticut, handled the case for
the Government.

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