FOR IMMEDIATE RELEASE                                          AT
TUESDAY, MAY 16, 1995                              (202) 616-2771
                                               TDD (202) 514-1888

        WESTERN NEW YORK ABRASIVE GRAINS MANUFACTURER AND
           VICE PRESIDENT INDICTED FOR FALSE STATEMENTS


     WASHINGTON, D.C. -- A federal grand jury in Alexandria,
Virginia, today indicted a New York firm and one of its
executives for making a false statement in connection with the
purchase of surplus aluminum oxide which is used to make sand
paper, grinding wheels and other abrasive products from the
United States Department of Defense, the Department of Justice
said.
     William H. Nehill of Orchard Park, New York, and his firm,
Exolon-ESK Company of Tonawanda, New York, were charged in a 
one-count indictment with submitting a false statement to the 
federal government in October 1994.  
     In its bid to purchase aluminum oxide from the Department of
Defense's Defense Logistics Agency, Exolon-ESK Company, through
Nehill, certified that no principal of the company was under
indictment for destruction of records, making false statements,
and other federal crimes.  However, according to the Department's
Antitrust Division, Nehill was indicted by a Buffalo, New York,
grand jury on February 11, 1994, for obstruction of justice for
destroying records responsive to a grand jury subpoena and for
making false declarations under oath.  At the same time, the
Antitrust Division also charged Nehill, Exolon-ESK, and others,
with participating in a price fixing conspiracy involving
aluminum oxide.
     Anne K. Bingaman, Assistant Attorney General in charge of
the Antitrust Division, said today's charge arose in connection
with the Department's prosecution of Exolon-ESK Company, Nehill,
and other conspirators in Buffalo, New York, and the Defense
Department's investigation into fraudulent bidding practices by
Exolon-ESK Company.  
     The investigation is being conducted by the Defense Criminal
Investigative Service and the Antitrust Division's Litigation II
Section, with the assistance of the United States Attorney's
office in Alexandria, Virginia.
     The maximum penalty for an individual convicted of making
false statements is five years imprisonment or a fine of $250,000
or both.  The maximum penalty for a corporation convicted of the
same offense is a fine of $500,000.
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