FOR IMMEDIATE RELEASE                                                   CIV
THURSDAY, NOVEMBER 10, 1994                                  (202) 616-2765
                                                         TDD (202) 514-1888

             TELEDYNE SETTLES DEFENSE FRAUD CASE FOR $850,000


     WASHINGTON, D.C. -- Teledyne Industries Inc., a major
military contractor, will pay the United States $850,000 to
settle claims it failed to provide the Defense Department with
full information on Army, Navy and Air Force contracts, the
Department of Justice said today.
     Assistant Attorney General Frank Hunger of the Civil
Division said the settlement resolves a suit filed by Taxpayers
Against Fraud under the qui tam provisions of the False Claims
Act in U.S. District Court in Los Angeles.  
     Under the agreement, Teledyne will pay TAF $100,000  for
legal fees, costs and expenses.  TAF also will receive $170,000
as its share of the settlement proceeds.  The court unsealed the
complaint November 4.
     The Department said a government investigation found that
Teledyne failed to disclose to DOD that it was using equipment
already in stock when providing pricing data for Army, Navy and
Air Force contracts at its Newbury Park, California, facility
from 1987 through 1991.  The equipment in stock was less than the
proposed market price which Teledyne charged the government.
     The investigation also determined that Teledyne failed to
disclose current, accurate and complete pricing information on
orders for interrogator/transponders, instruments the military
uses to identify friendly or unfriendly aircraft, for the Navy's
E-2C aircraft in 1991.  Teledyne did not tell the government that
the project would require less hours of labor than it originally
proposed.  The Truth in Negotiation Act required Teledyne to
provide the information to government negotiators.
     The case was investigated by the Defense Criminal
Investigative Service's Van Nuys, California, office; the Air
Force's Office of Special Investigation at Los Angeles Air Force
Base; the FBI's Ventura, California, office; the Naval Criminal
Investigative Service's Regional Fraud Unit at Upland,
California; and the Army's Criminal Investigative Command's Fraud
Field Office at Laguna Niguel, California.  Audit support was
provided by the Defense Contract Audit Agency's Oxnard,
California, office.
     Under the qui tam provisions of the False Claims Act, a
private organization such as TAF can sue on behalf of the United
States and share in any recovery.
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