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FORMER GRUMMAN CORPORATION OFFICIAL INDICTED FOR CONTRACT FRAUD

 WASHINGTON, Oct. 21 /PRNewswire/ -- The Department of Justice today announced that a federal grand jury in Uniondale, Long Island, returned a 22-count indictment charging Howard Broderson, 54, a former vice- president of Grumman Data System Corporation's Business Operations Division, with defrauding the National Aeronautics and Space Administration (NASA) in connection with the procurement of supercomputer hardware, software and services for NASA's Johnson Space Center in Houston, Texas.
 The indictment charges Broderson with 11 counts of major fraud against the United States, nine counts of wire fraud and two counts of making false statements to NASA. The indictment alleges that, during contract negotiations between Grumman Data Systems Corporation and NASA in 1989, Broderson fraudulently concealed from NASA cost information relating to the financing of supercomputer hardware. As a result, Broderson fraudulently caused NASA to overpay Grumman for the supercomputer hardware.
 If convicted, Broderson faces a maximum fine of $1 million (not to exceed a total of $10 million) and imprisonment for 10 years for each major fraud count, and a maximum fine of $250,000 and imprisonment for five years for each mail fraud and false statement count.
 The case is being prosecuted by Scott W. MacKay and Deborah A. Kent of the Department of Justice Defense Procurement Fraud Unit. The case was investigated by agents from the NASA Office of the Inspector General.
 -0- 10/21/93
 /CONTACT: The U.S. Department of Justice, 202-514-2271/
 (GQ)


CO: Department of Justice; Grumman Corporation ST: District of Columbia, New York IN: ARO SU: EXE

DC-DS -- DC058 -- 2149 10/21/93 17:52 EDT
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Publication:PR Newswire
Date:Oct 21, 1993
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