NASA Contractors Deny Responsibility in Fraud Suit by U.S.

Three aerospace companies being sued by the Justice Department for allegedly concealing millions of dollars in fraudulent billings by a NASA subcontractor have denied any legal responsibility.

Rockwell International spokesman Terry Francisco said Thursday that the company divested itself of any liability when it sold its aerospace business to Boeing in 1996.

The alleged fraud detailed in the Los Angeles federal court case occurred between 1986 and 1993 while Rockwell was a prime contractor for NASA’s space shuttle and space station projects.

Boeing said Wednesday it does not believe it is legally responsible, even though it assumed Rockwell’s NASA contracts in the 1996 sale.

Also named as a defendant was United Space Alliance of Houston, a joint venture between Boeing and Lockheed Martin Corp. formed in 1996 to consolidate prime contractor responsibilities on the shuttle and space station projects.

A United Space Alliance spokesman, Jeffrey Carr, said Thursday that the company believes it was named as the result of some confusion over corporate identities stemming from its takeover of the NASA contract.

The subcontractor accused of the fraud pleaded guilty in 1996 to nearly 180 criminal counts. He was sentenced to two years in prison and ordered to pay $12 million in fines and restitution.

Among the expenses he billed to NASA were mortgage payments on three homes, production costs for a feature-length horror movie and the operation of several pizza franchises.