FOR IMMEDIATE RELEASE                                         CIV
FRIDAY, MAY 31, 1996                                 202 514-2007
                                             (TDD)   202 514-1888

 DANA CORPORATION TO PAY UNITED STATES $10.175 MILLION TO SETTLE 
     FRAUDULENT OVERCHARGING CLAIMS ON AIR FORCE CONTRACTS  
     WASHINGTON, D.C. --  The Department of Justice announced today
that Dana Corporation of Toledo, Ohio, has agreed to make a final
payment of $10.175 million to the United States to settle the
remaining portion of the United States' lawsuit alleging that
Dana's former division, Beaver Precision Products, Inc., of Troy,
Michigan, overcharged on ball screws used in F100 high-performance
jet engines obtained by the Air Force during 1981-1994.  In
September, 1995 Dana paid $19.5 million to the United States to
settle related claims.       
     Dana's $29.675 million total payment settles the government's
lawsuit, filed November, 1992, in United States District Court for
the Eastern District of Michigan, that charged that Beaver,
principally through its controller and major contracts
administrator, Mr. Bernard Coyne, had knowingly inflated proposals
on sole-source, negotiated government contracts for ball screw
actuators.  Ball screw actuators are motorized control devises used
on Patriot and MLRS missiles, B-1, C-5, C-130 and F-14 aircraft,
and the F100 jet engine.  
The government estimates that Beaver increased its revenues by
approximately $10 million by the scheme.
     Assistant Attorney General Frank W. Hunger, head of the Civil
Division, emphasized that the successful completion of the complex
litigation resulted from exemplary audit efforts by Defense
Contract Audit Agency auditors and exhaustive investigative effort
by the Army Criminal Investigative Division and by the Defense
Criminal Investigative Service.  
     In January, 1985 Dana Corporation purchased the stock of the
parent corporation of Beaver Precision Products,Inc., and, by
December 1986 the three companies had merged.  In March, 1991, Dana
Corporation sold its Beaver operations to a subsidiary of LHC
Capital Corporation, and has had no ownership interest in Beaver
since that time. 
     The False Claims Act entitles the government to seek triple
damages and a $10,000 civil penalty for each false claim submitted. 
          
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