FOR IMMEDIATE RELEASE CIV MONDAY, AUGUST 15, 1994 (202) 514-2007 TDD (202) 514-1888 ST. LOUIS FIRM PAYS U.S. $165,898 TO SETTLE KICKBACK DISPUTE WASHINGTON, D.C. -- A St. Louis, Missouri, firm will pay the United States $165,898 to settle allegations the government paid too much on military contracts because of a kickback scheme by one of its employees, the Department of Justice said today. The agreement settles allegations that Engineered Air Systems Inc. overcharged the Department of Defense on subcontracts between 1985 and 1990, said Frank Hunger, Assistant Attorney General in charge of the Civil Division. The Department said Marc Garcia, an Engineered Air employee, pleaded guilty in 1991 to criminal charges of receiving the kickbacks. Engineered Air was not charged with any criminal violations. The government said Garcia received most of the kickbacks from Patrick Kelly, who paid Garcia kickbacks on freight subcontracts that contained excessive broker's fees. Kelly, owner of Transportation Specialists of St. Louis, was convicted on criminal charges stemming from the scheme. Engineered Air is a manufacturer of ground-based military equipment such as water purification, heating and refrigeration systems. Kelly was a transportation broker through whom Garcia arranged transportation of the equipment. He received a percentage of the transportation costs as a fee that included Garcia's kickbacks. ##### 94-471