FOR IMMEDIATE RELEASE                                         CIV
MONDAY, NOVEMBER 20, 1995                          (202) 616-2765
                                               TDD (202) 514-1888

                                 
  AUBURN, N.Y., FIRM PAYS U.S $600,000 TO SETTLE DEFENSE CLAIMS


     WASHINGTON, D.C. -- SL Auburn Inc. of Auburn, New York, and
its parent, SL Industries Inc., have agreed to pay the United
States $600,000 to settle allegations SL Auburn manufactured
defective and substandard tank and aircraft engine igniters under
Department of Defense contracts, the Department of Justice
announced today.
     Assistant Attorney General Frank Hunger of the Civil
Division said the agreement settles a qui tam suit filed by a
former SL Auburn employee, Edward J. Dyman, April 25, 1994, in
U.S. District Court in Albany, N.Y., and resolves any potential
liability of SL Industries and SL Auburn.
     The Department alleged that SL Auburn improperly used a
kerosene-graphite slurry on igniters that failed required
electrical tests to artificially increase the conductivity of the
igniters to make sure they passed the tests.  SL Auburn officials
also allegedly retrieved scrapped igniters and shipped them to
the Defense Department to meet inventory shortfalls.  The
practices continued for 10 years.
     Under the settlement, SL Auburn agreed not to ship scrapped
products to the government in the future or use the kerosene-graphite 
slurry during testing unless expressly permitted. 
     "This settlement reflects the government's continued
determination to vigorously prosecute cases involving the
provision of goods that have not been tested in full conformity
with applicable product requirements and government contracts,"
said Hunger.
     The Navy used the igniters in T-56 engines used in the P-3
Orion anti-submarine warfare aircraft.
     The case was investigated by the Washington, D.C., and
Albany, N.Y., offices of the Navy's Criminal Investigative
Service; and the Syracuse offices of the Army's Criminal
Investigative Service; the Air Force's Office of Special
Investigations; and the Defense Criminal Investigative Service.
     Dyman will receive $144,000 for bringing the case to the
attention of the United States.
     Under the qui tam provisions of the False Claims Act, a
private party can file a suit on behalf of the United States and
receive a portion of the damages if the government takes over the
case and prosecutes it successfully.
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95-585