JUNE 28, 2012
United Technologies subsidiary pleads guilty to criminal charges for helping China develop new attack helicopter
United Technologies, Pratt & Whitney Canada and Hamilton Sundstrand Corporations also agree to pay more than $75 Million to U.S. government after HSI-led investigation
BRIDGEPORT, Conn. – Pratt & Whitney Canada Corp. (PWC), a Canadian subsidiary of the Connecticut-based defense contractor United Technologies Corporation (UTC), today pleaded guilty to violating the Arms Export Control Act and making false statements in connection with its illegal export to China of U.S.-origin military software used in the development of China's first modern military attack helicopter, the Z-10.
In addition, UTC, its U.S.-based subsidiary Hamilton Sundstrand Corporation (HSC) and PWC have all agreed to pay more than $75 million as part of a global settlement with the Justice Department and State Department in connection with the China arms export violations and for making false and belated disclosures to the U.S. government about these illegal exports. Roughly $20.7 million of this sum is to be paid to the Justice Department. The remaining $55 million is payable to the State Department as part of a separate consent agreement to resolve outstanding export issues, including those related to the Z-10. Up to $20 million of this penalty can be suspended if applied by UTC to remedial compliance measures. As part of the settlement, the companies admitted conduct set forth in a stipulated and publicly filed statement of facts. All of this is the result of an extensive investigation led by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
"This case is a clear example of how the illegal export of sensitive technology reduces the advantages our military currently possesses," said ICE Director John Morton. "I am hopeful that the conviction of Pratt & Whitney Canada and the substantial penalty levied against United Technologies and its subsidiaries will deter other companies from considering similarly ill-conceived business practices in the future. American military prowess depends on lawful, controlled exports of sensitive technology by U.S. industries and their subsidiaries, which is why ICE will continue its present campaign to aggressively investigate and prosecute criminal violations of U.S. export laws relating to national security."
Today's actions were announced by ICE Director John Morton; U.S. Attorney David B. Fein, District of Connecticut; Assistant Attorney General for National Security Lisa Monaco; Ed Bradley, special agent in charge of the Northeast Field Office of the Defense Criminal Investigative Service (DCIS); Kimberly K. Mertz, special agent in charge of the FBI New Haven Division; David Mills, Department of Commerce assistant secretary for Export Enforcement; and Andrew J. Shapiro, assistant secretary of state for Political-Military Affairs.
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