FOR IMMEDIATE RELEASE                                         CIV
WEDNESDAY, APRIL 17, 1996                          (202) 616-2765
                                               TDD (202) 514-1888

                                 
          UNITED STATES TAKES OVER SUIT AGAINST TELEDYNE


     WASHINGTON, D.C. -- The United States today took over a
lawsuit accusing Teledyne Industries Inc. of allegedly creating 
several schemes to hide shortages of military aircraft engine
parts it held in inventory under Department of Defense contracts,
the Department of Justice announced.
     Assistant Attorney General Frank Hunger of the Civil
Division said the Department asked U.S. District Court in
Springfield, Missouri, to unseal a qui tam complaint filed by a
former Teledyne employee, Gerald Dean Woodward, in 1991.  
     The Department, in its notice, said it intends to file an
amended complaint superseding Woodward's suit, which was unsealed
today.  The government declined to take action against a number
of other defendants Woodward cited.  
     According to Woodward's complaint, Teledyne held over $50
million in military contracts that required it to repair
government aircraft engine parts.  The contracts also required
Teledyne to establish and maintain accurate inventories of
hundreds of millions of dollars worth of government parts.  Under
the contracts, Teledyne was required to inventory the parts
periodically and pay the government for shortages or for
unaccounted parts.
     The complaint said Teledyne, when it discovered shortages,
concealed those shortages from the government through several
fraudulent schemes, including altering and destroying official
property records.  
     In addition, Teledyne allegedly used some of the missing
government parts in repairing commercial aircraft, while others
were sold to nongovernment parties.  
     The Department said Teledyne's director of materials pleaded
guilty to a felony violation of making a false statement under
Title 18, USC, Sec. 1001, regarding falsifying and concealing
Teledyne's receipt of government parts and using false documents
in maintaining an inventory of those parts.
     Under the qui tam provisions of the False Claims Act,
private parties may bring fraud actions on behalf of the
government and receive a portion of any damages if the government
takes over the case and prosecutes it successfully.
     Under the False Claims Act, the government is entitled to
treble damages plus civil penalties ranging from $5,000 to
$10,000 per violation.  
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96-171