FOR IMMEDIATE RELEASE                                         CIV
TUESDAY, MARCH 11, 1997                            (202) 616-2765
                                               TDD (202) 514-1888
     WASHINGTON, D.C. -- A Wisconsin furniture maker will pay the
United States $5,107,321 to settle claims it overcharged the
government on 15 federal contracts because it did not give the
government the same discounts it gave dealers, the Department of
Justice announced today.

     Assistant Attorney General Frank Hunger of the Civil
Division and Thomas P. Schneider, U.S. Attorney of Milwaukee,
Wisconsin, said the settlement resolves allegations that Krueger
International, a furniture manufacturer in Green Bay, Wisconsin,
failed offer the government the same reductions in price it
offered to commercial customers.  Krueger told the government of
the overcharges under GSA's voluntary disclosure program. 
     "Firms that hold government contracts should know that the
government expects and is entitled to the same price reductions
the company provides other customers and that the government will
investigate and prosecute those companies that fail to provide
those discounts to the United States," said Hunger.

     Krueger informed GSA that, between 1987 and 1993, the
company did not tell government contracting officials that
Krueger offered commercial customers lower prices than it offered
to government customers and did not offer these lower prices to
the government, as Krueger's government contracts required.      

     GSA's Office of Inspector General investigated and confirmed
the overcharges.  In addition, the OIG found that Krueger had
overcharged the government on freight charges since Krueger
received rebates or discounts from freight companies which the
company did not pass on to its government customers.  

     The Civil Division and the Milwaukee U.S. Attorney's office
negotiated the settlement.