The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Friday, September 30, 1994             TAG: 9409300493
SECTION: LOCAL                    PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: BY PERRY PARKS, STAFF WRITER 
DATELINE: ELIZABETH CITY                     LENGTH: Short :   43 lines

COAST GUARD EX-EMPLOYEE INDICTED IN FRAUD CASE

A former civilian employee of the U.S. Coast Guard has been indicted on charges of conspiracy to defraud, for allegedly awarding fellow workers overtime for work they didn't do.

Oscar O'Neal Etheridge, 47, of Elizabeth City surrendered to U.S. marshals in Raleigh on Wednesday and was released on unsecured bond after an initial court appearance, officials in the marshals office said Thursday.

The indictment follows a yearlong investigation sparked by employee complaints of wrongdoing at the Aircraft Repair and Supply Center, where Etheridge served in the supervisory role of sheet metal mechanic general foreman.

Etheridge, who had worked for the Coast Guard for 24 years, and another foreman were fired in August 1993 as a result of the investigation, said Cmdr. Gary Mansi, the ARSC's executive officer.

The indictment charges that for 3 1/2 years, Etheridge ``and another person known to the Grand Jury'' borrowed money from workers and repaid the loans by ``preparing and aiding the preparation of false time and attendance records . employees would not actually perform.''

Etheridge also is accused of asking his employees to do personal work for him, that also was paid for by preparing false time and attendance documents, the indictment says.

The activity may have cost the government more than $100,000 since 1990, Assistant U.S. Attorney John H. Bennett said.

``We believe it actually started before that time, but dating it before that is a rather uncertain exercise,'' Bennett said.

Neither Etheridge nor his Elizabeth City lawyer, John Halstead, could be reached for comment Thursday.

The investigation is not yet complete, Bennett said.

But he would not say whether the other fired employee will be charged. by CNB