FOR IMMEDIATE RELEASE                                         CIV
THURSDAY, JUNE 1, 1995                             (202) 616-2765
                                               TDD (202) 514-1888

                                 
               ILLINOIS FIRM PAYS U.S. $4.7 MILLION
           TO SETTLE DISPUTE OVER FAULTY MILITARY PARTS


     WASHINGTON, D.C. -- An Illinois electronics firm will pay
the United States $4.7 million to settle allegations it falsely
stated it could manufacture parts for military night vision
equipment used in tanks when in fact it lacked the expertise and
passed off another company's equipment as its own in getting
approval to manufacture the equipment, the Department of Justice
announced today.
     Assistant Attorney General Frank Hunger of the Civil
Division and U.S. Attorney James B. Burns of Chicago said the
equipment, when tested upon receipt at military depots, was
discovered to be defective and was never installed. 
     Today's agreement settles a potential lawsuit the Department
could have filed under the False Claims Act against Richardson
Electronics Ltd. of LaFox, Illinois.
     Richardson obtained a $3.19 million contract in 1987 from
the Defense Electronics Systems Command in Dayton, Ohio, to
produce night vision image converter tubes, which are used for
night vision and targeting in tanks, the Department said.
     To prove it could manufacture acceptable tubes, Richardson
falsified samples of tubes it submitted to DESC.  In fact, a
government investigation determined that Richardson substituted
another company's tubes and passed them off as its own. 
Richardson falsely certified that it had produced the samples,
the Department said.
     The Department said Richardson built and furnished 10,000
tubes to the government, all of which were non-conforming and
defective.  None were actually installed in tanks.
     The investigation was conducted by the Defense Criminal
Investigative Service office in Chicago, Illinois.
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95-305