NASA Contractor Indicted For Fraud

This just in from the U.S. Department of Justice in Houston:

NASA CONTRACTOR INDICTED FOR FRAUD INVOLVING SPACE VEHICLE PARTS

(HOUSTON) -- Richard J. Harmon, 60, has been indicted and charged with fraud involving space vehicle parts and with making a false statement in a matter within the jurisdiction of the National Aeronautics and Space Administration (NASA), acting United States Attorney Tim Johnson announced today.

A two-count indictment charging Harmon with fraud involving space vehicle parts and making a false statement was returned by a Houston federal grand jury on Wednesday, Nov. 12, 2008. A summons is expected to issue directing Harmon to appear before a United States Magistrate Judge for arraignment in the near future.

The indictment alleges that Harmon, owner of Cornerstone Machining, Inc. in Alvin, Texas, was hired by Spacehab, Inc., to build a part for the Space Shuttle Endeavour. The part was designed to secure cargo to the payload bay of the Endeavour during a flight to the International Space Station in March 2008. According to the indictment, the part, called a passive flight releasable attachment mechanism interface plate, was damaged during the manufacturing process. Harmon is alleged to have covered up the damage by causing it to be welded without informing Spacehab. Harmon is accused of delivering the part to Spacehab without disclosing the damage and falsely certifying the materials and processes used in machining the part complied with the requirements of applicable drawings.

According to allegations in the indictment, the damage and weld reduced the structural strength of the part by approximately 40 percent. Had NASA not discovered the damage and used the damaged part as planned, it could have cracked open during flight, allowed cargo to come loose and, possibly, resulted in the loss of the spacecraft and personnel aboard. A NASA engineer discovered the unauthorized weld during an inspection prior to the planned flight and the damaged part was discarded, according to the indictment.

Harmon is charged with one count of fraud involving space vehicle parts in violation of Title 18 U.S.C. Section 38, which, upon conviction, carries a maximum possible penalty of 10 years imprisonment and $250,000 fine. The indictment also charges Harmon with one count of making a false statement in violation of Title 18 U.S.C. Section 1001(a), which carries a maximum sentence of five years imprisonment and a $250,000 fine upon conviction.

The criminal charges are the result of an investigation conducted by NASA Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney John R. Lewis.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.