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MOTOROLA PAYS $15.1 MILLION TO SETTLE CLAIMS

 MOTOROLA PAYS $15.1 MILLION TO SETTLE CLAIMS
 WASHINGTON, Feb. 26 /PRNewswire/ -- William R. Barton, inspector


general, U.S. General Services Administration (GSA), today announced receipt of $15,100,000 from Motorola Inc. in settlement of U.S. government claims that the company violated the False Claims Act.
 Barton said this is the largest civil settlement ever received in connection with a single case initiated by the GSA Office of Inspector General. It settled claims that the company violated the False Claims Act by failing to disclose to GSA discounts Motorola offered on its computer equipment and maintenance and that Motorola knowingly sold the government refurbished computer equipment which it represented as new.
 The GSA inspector general office found that Motorola knowingly made false statements and claims to GSA in connection with Motorola's maintenance of automated data processing equipment under GSA multiple award schedule contracts for fiscal years 1984 through 1987.
 Under the multiple award schedule program, GSA negotiates contracts with vendors who then sell to federal agencies at established contract prices. During negotiations, a Motorola subsidiary furnished GSA with its commercial price list and submitted what it represented to be complete, accurate and current information concerning discounts from its list prices.
 Motorola company representatives disclosed and certified that no regular discounts were given to any customer on maintenance. The Office of Inspector General found, however, that the company had granted maintenance discounts to commercial customers. In addition, it found that Motorola had not disclosed purchase discounts on several lease-to-purchase conversions. GSA contracting officers relied on the information furnished by Motorola and as a result, awarded contracts at higher prices than would have been negotiated had there been proper disclosure.
 The Office of Inspector General also determined that between 1979 and 1984 Motorola sold a significant quantity of refurbished computer equipment under the schedule that it represented as new equipment.
 Barton said the settlement resulted from a three-year probe by the GSA Office of Inspector General, the Commercial Litigation Branch of the Department of Justice Civil Division and the U.S. Attorney's Office, Northern District of Texas.
 Stuart Gerson, assistant attorney general, civil division, and Barton said the settlement demonstrates the government's determination to enforce disclosure obligations required of contractors who negotiate federal contracts.
 -0- 2/26/92
 /CONTACT: Karen Shaffer of the U.S. General Services Administration, 202-501-0450/ CO: U.S. General Services Administration; Motorola Inc. ST: District of Columbia IN: SU:


DC-MK -- DC035 -- 3015 02/26/92 17:35 EST
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Date:Feb 26, 1992
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