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ITT fined $100m for sale of military technology
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ITT on Tuesday agreed to pay $100m in penalties for sending military technical data for night-vision goggles to China, the United Kingdom and Singapore.
The 12th-largest defence contractor in the world pleaded guilty to violating US laws against military technology and to omitting key facts from reports to the State Department to hide the fact it had been exporting goggle technology information without the proper licenses for years.
The case marks the first time that a major US defence contractor has been convicted of violating the Arms Export Control Act.
ITT, a global manufacturing and engineering firm with $8bn in annual sales, has been producing night-vision goggles for the US military for more than 30 years.
Rather than forcing ITT to pay the entire $100m up front, prosecutors negotiated a deal whereby $50m of the fine will be suspended for five years. The debt will then be forgiven if the company spends at least $50m to develop and produce even more advanced night vision goggles. A US military laboratory will supervise the spending and the US will retain the right to share any newly developed technology with other manufacturers.
"ITT has put in jeopardy the tactical advantages that enable our soldiers to fight effectively and more safely at night," said John Brownlee, the US Attorney, who brought the case. "Illegally exporting our nation's most important secrets will prosecuted and punished."
The guilty plea is a result of a five-year investigation, sparked by allegations that ITT employees illegally sent classified military information to the UK.
The resulting probe found a series of violations, including the 2001 transfer of technical data about a "light interference filter" to a Singapore company that then sent the data on to the UK and China. ITT's night vision division also illegally worked with a Singapore company that did not have proper US licenses.
Mr Brownlee said the company initially fought his investigation but he praised Steven Loranger, who became chief executive in 2004, for changing the tone. The head of ITT's night vision program has also been replaced recently.
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