Military night vision equipment manufacturer ITT Corp admitted Tuesday to sending classified materials overseas and will pay a $100 million penalty.
The penalty is the largest ever paid in a criminal case and ITT Corp will be the first major defense contractor convicted of a criminal violation of the Arms Export Control Act.
ITT Corp is going to plead guilty to one count of export of defense articles without a license and one count of omission of statements of material facts in arms exports reports.
“The sensitive night vision systems produced by ITT Corp. are critical to U.S. war-fighting capability and are sought by our enemies and allies alike. 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,” said Assistant Attorney General Kenneth L. Wainstein. “We commend the prosecution team and ITT Corp. for developing a plea agreement that addresses the violations of the past, ensures compliance in the future and serves as a strong warning to others who might be tempted by the profits of such illegal exports.”
Out of the $100 million penalty, $2 million is for a criminal fine, $50 million is for a deferred prosecution penalty, $28 million will go to the United States as proceeds of ITT’s illegal actions and $20 million will cover a monetary penalty to the Dept of State.