FOR IMMEDIATE RELEASE	CIV

THURSDAY, FEBRUARY 19, 1998                                                                                (202) 616-2765

                                                                                                                                               TDD (202) 514-1888




UNITED STATES JOINS FALSE CLAIMS ACT CASE AGAINST TRW INC.





	WASHINGTON, D.C. -- The United States has intervened in a
qui tam suit accusing TRW Inc. of unlawfully boosting its profit
on federal contracts through several related cost mischarging
schemes, the Department of Justice announced today.

	Assistant Attorney General Frank W. Hunger of the Civil
Division and Nora M. Manella, U.S. Attorney in Los Angeles,
California, said the United States' intervention involved two of
eight claims contained in the qui tam complaint filed by Richard
D. Bagley, former director of financial control at TRW's Space &
Technology Group in Redondo Beach, California.

	The Department alleged that from 1990 through early 1992 TRW
falsely mischarged to the government independent research and
development (IR&D) and bid and proposal costs associated with its
attempt to enter the space launch vehicle business.  If TRW had
correctly accounted for those costs, the Department said, the
government would not have reimbursed TRW because in each of those
years TRW exceeded the contractual ceiling on expenditures for
which the government had agreed to reimburse TRW.

	The second claim alleged that from 1990 through at least
1995 TRW engineers at the company's Space Park facility in
Redondo Beach falsely misclassified work for TRW's automotive
businesses as "long-range marketing" when, in fact, the work was
IR&D.  By classifying the work as long-range marketing, however,
TRW reduced the costs charged to its automotive groups which, in
turn, raised the overhead rates paid under the government
contracts. 

	 The Department also said the government's complaint, which
will be filed later, will allege that TRW mischarged the United
States for the cost of fabricating a prototype satellite solar
array wing.  TRW wrongly charged the costs to an account for the
fabrication of capital equipment rather than to its IR&D account
in seeking full government reimbursement of those costs, the
Department said.

	"This suit is a signal to government contractors that the
Department will investigate and pursue those entities that
mischarge the United States and attempt to hide those mischarges
through the use of artful accounting procedures," said Hunger. 
"The United States negotiates in good faith and expects the same
from those with whom it deals." 

	Under the qui tam provisions of the False Claims Act, a
person with knowledge of financial fraud against the government
is authorized to file suit against the alleged wrongdoer on
behalf of the government.  Subject to certain statutory
provisions, if the law suit results in a monetary judgment or
settlement, the person is entitled to a share of the proceeds. 	Bagley's suit was filed in U.S. District Court in Los
Angeles.

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