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ITT Fined $100 Million for Exporting Night-vision Goggles to China

Posted by Author on March 28, 2007

By James Vicini, Reuters, Mar 27, 2007-

WASHINGTON (Reuters) – ITT Corp. has agreed to plead guilty and pay a penalty of up to $100 million for illegally exporting night-vision goggle component parts to China, Singapore and Britain in 2001, the U.S. Justice Department said on Tuesday.

It said ITT had agreed to plead guilty to one count of making the exports without first obtaining a license or written authorization from the State Department.

The company also will plead guilty to one count of leaving out material facts from required reports on arms exports between 2000 and 2004, making the reports misleading, the department said.

The Justice Department said ITT would pay a $2 million criminal fine, forfeit $28 million as the proceeds of its illegal actions, and pay a $20 million penalty to the State Department.

Payment of a $50 million deferred prosecution penalty will be suspended for five years, department officials said. ITT can pay the $50 million or invest that same amount in developing more advanced night-vision technology.

The officials called the total one of the largest penalties ever in a criminal case. They said ITT would become the first major defense contractor convicted of a criminal violation of the Arms Export Control Act.

“ITT’s exportation of this sensitive technology to China and other nations jeopardized our national security and the safety of our military men and women on the battlefield,” Assistant Attorney General Kenneth Wainstein said in a statement. ……  ( more details from Reuters)

One Response to “ITT Fined $100 Million for Exporting Night-vision Goggles to China”

  1. Mike S said

    I have just finished working for this company in Afghanistan. The managers there are unscrupulous indeed. The ethical standards they employ seem to be company wide.
    They shouldn’t be allowed to hold defense contracts of any kind.

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