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. 
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94-471