VENTURA : Former Executive Convicted of Fraud

A 42-year-old Ventura man has been convicted on charges of federal wire and mail fraud in connection with business dealings with Mobil Oil of Indonesia, an FBI spokesman said.

Howard B. Nicholls, formerly president of National Equipment and Supply Co. in Ventura, was convicted after having employees substitute less-expensive and less-reliable equipment for items ordered by Mobil, said FBI spokesman Gary Auer. Nicholls then directed employees of the oil company supply firm to falsify manufacturer’s certificates and test reports, Auer said.

According to the charges filed March 27, Mobil requested equipment from specified manufacturers on its purchase orders, which required certificates and/or certified test reports confirming that the equipment had been made by those manufacturers, Auer said.

In the first count, Nicholls was charged with sending documents through the mail in March, 1987, causing the shipment of substitute equipment and payment of $66,735.60 to NESCO. The second count alleged that on March 3, 1987, Nicholls caused Bank of America in Singapore to wire $97,475.32 to NESCO, authorizing payment for substituted oil-field equipment sold to Mobil, Auer said. NESCO went out of business in 1987.

Sentencing has been set for Sept. 23 before U.S. District Judge Terry J. Hatter Jr., Auer said. Nicholls faces a maximum sentence of five years in prison and fines of $1,000 for each of the two counts, he said.