FOR IMMEDIATE RELEASE                                         CRM
THURSDAY, OCTOBER 30, 1997                         (202) 514-2008
                                               TDD (202) 514-1888

              POSTMASTER GENERAL AGREES TO PAY FINE
                IN CIVIL SETTLEMENT FOR FINANCIAL
                       CONFLICT OF INTEREST


     WASHINGTON, D.C. -- The Justice Department's Public
Integrity Section announced today that United States Postmaster
General Marvin T. Runyon has agreed to pay a $27,550 fine in
civil settlement of a financial conflicts of interest violation.

          The settlement papers filed today, in U.S. District
Court for the District of Columbia, ends a Public Integrity
Section investigation that began in September 1996.

     The civil settlement grew out of a criminal investigation
into allegations that during 1996, at a time when he owned
substantial amounts of Coca-Cola common stock, Runyon attended
meetings and participated in discussions in connection with a
proposed strategic marketing alliance between the Postal Service
and the Coca-Cola Company.
     
     The Government's complaint alleges that Runyon's action
violated the federal financial conflicts of interest statute (18
U.S.C.  208), which prohibits a federal official from knowingly
participating personally and substantially in a matter in which
he has a financial interest.  Civil settlement is an alternative
disposition for non-willful violations of Section 208 under a
penalty statute, 18 U.S.C.  216, that also provides misdemeanor
sanctions for non-willful violations and felony sanctions for
willful violations.
  
     In agreeing to the settlement, Runyon denied that his
participation in the Coca-Cola matter was "personal and
substantial."  He also asserted that he was entitled to rely on
Postal Service ethics officials to alert him to any conflict of
interest, and that his potential financial interest in the
proposed alliance was too attenuated to violate Section 208. 
 
     However, Runyon admitted that he knew of the prohibitions of
Section 208, and that he nevertheless became involved in moving
the strategic alliance proposal through the Postal Service.

     In his Answer to the government's Complaint, Runyon also
stated that he agreed to the settlement to "demonstrate his 
willingness to accept responsibility for his limited official
participation in a matter in which he could even be perceived as
having the appearance of a financial interest."

     The $27,550 fine provided for in the settlement agreement
represents the increase in value of Runyon's Coca-Cola stock
between a time when he should have recognized the conflict (i.e.,
when he signed his 1995 Financial Disclosure Report) and the time
he actually disqualified himself from involvement in the
alliance.  In paying the fine, Runyon forfeits the potential
profit he obtained from failing to comply with Section 208 during
that period. 

     The matter was handled by the Criminal Division's Public
Integrity Section.  The investigation was conducted by the Postal
Inspection Service.
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97-450