FOR IMMEDIATE RELEASE                                         CIV
THURSDAY, AUGUST 10, 1995                          (202) 514-2008
                                               TDD (202) 514-1888

                                 
    GENERAL ELECTRIC PAYS $7.1 MILLION TO SETTLE FRAUD SUIT
     ALLEGING JET ENGINES DID NOT MEET BONDING REQUIREMENTS
                                
                                
     WASHINGTON, D.C. -- The General Electric Company of
Fairfield, Connecticut, will pay the United States $7.1 million
to settle allegations the company's Aircraft Engines business
group in Evendale, Ohio, sold several thousand jet engines to the
military that did not comply with military electrical bonding and
electromagnetic interference testing requirements, the Department
of Justice and the U.S. Attorney in Cincinnati, Ohio, announced
today.  
     Subsequently, the Air Force tested the engines and found
them to be safe.
     Assistant Attorney General Frank W. Hunger, in charge of the
Civil Division, said the agreement settles a lawsuit filed in
U.S. District Court in Cincinnati in December 1993 by Ian
Johnson, an engineer at GE's Aircraft Engines plant in Evendale.
     "I commend those who worked hard to resolve this case," said
Edmund Sargus Jr., U.S. Attorney in Cincinnati.  "The provisions
of the False Claims Act allow us to protect the integrity of the 
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products and services the government buys." 
     Johnson's suit alleged that GE delivered jet engines to the
Air Force, Navy and Army even though the company knew that
certain controls and accessories in the engines did not meet the
electrical bonding requirements as required under contracts with
the government.  The government said the allegations referred to
F110-GE-100 and F110-GE-129 engines installed in the Air Force's
F-16 single-engine fighter jet, F101-GE-102 engines installed in
the B-1B Bomber, CFM56-2B engines installed in Air Force tankers,
and other engines used in various Air Force, Navy and Army
aircraft.  
     Johnson filed suit on behalf of the United States under the
qui tam provisions of the False Claims Act, which allow a private
party to sue companies and individuals who have submitted false
claims to the federal government and receive a portion of the
settlement if the government takes over the suit and prosecutes
it successfully.  The suit, United States ex rel. Johnson v.
General Electric Company, No. C-1-93-0846, was under seal until
the government intervened and took over prosecution of the case
in June 1994.
     Johnson will receive more than $1.7 million as his share of
the settlement.
     The Department said electrical bonding refers to the level
of electrical resistance between different components of an
aircraft engine.  Low-resistance electrical bonding protects
aircraft from the effects of electromagnetic interference (EMI), 
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an electromagnetic disturbance that interrupts or degrades the 
performance of electronic equipment.  Low-resistance electrical
bonding helps to ensure that an aircraft is not susceptible to
EMI generated by communication, navigation and radar transmitters
or other sources such as lightning.  Low-resistance electrical
bonding also helps to ensure that an aircraft engine does not
emit EMI that might adversely affect the performance of
electronic equipment aboard the aircraft.
     The lawsuit claimed that GE delivered the engines to the
military even though the company knew that certain controls and
accessories did not meet the bonding requirements.
     The Department said GE could have been liable for damages
and penalties under the False Claims Act for submitting false
claims to the United States for payment even though the engines
presented no safety problems as Johnson's suit alleged.  
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