United Technologies Corp. (UTX: Quote) announced that it has resolved previously disclosed enforcement actions brought by the U.S. Department of Justice and the Department of State in connection with past violations of U.S. export control regulations.
The company said the resolution includes Pratt & Whitney Canada or P&WC, a United Technologies company, pleading guilty to violating the State Department's International Traffic in Arms Regulations or ITAR, as well as the False Statements Act. The plea arises out of the improper export to China of modifications to Hamilton Sundstrand engine control software incorporated into P&WC helicopter engines from 2002-2005.
The company noted that the Justice Department has agreed to defer any action against United Technologies and Hamilton Sundstrand arising out of these improper exports pending implementation of certain remedial obligations.
The company stated that the agreement with the Department of State resolves self-disclosures made by the Company between 2006 and 2012, and includes $55 million in penalties, of which $35 million will be paid in cash over four years. The remaining $20 million will be suspended subject to certification and approval of qualifying compliance expenditures. Under the resolution with the Department of Justice, the UTC companies will collectively pay penalties totaling $20.7 million. The Company has fully reserved to account for all payments under the settlement agreements.
The company noted that the State Department's Office of Defense Trade Controls Compliance will impose a partial statutory debarment from ITAR license privileges on P&WC. The debarment will not affect existing export authorizations, nor will it affect P&WC's ability to continue to perform existing programs for the U.S. Government, NATO members and certain other U.S. allies, or programs that support Operation Enduring Freedom. P&WC will also be able to seek other ITAR authorizations on a case-by-case basis. P&WC will be eligible to apply for full reinstatement after one year.
| || |
| To receive FREE breaking news email alerts for United Technologies Corp. and others in your portfolio|
by RTT Staff Writer
For comments and feedback: email@example.com