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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Illegally Exporting Secret Military Data Overseas (Criminal Prosecution)

ITT Corp. agreed in March 2007 to pay $100 million and plead guilty to criminal violations of the Arms Export Control Act for allowing the transfer to China of classified night-vision technology. ITT, the Defense Department’s leading manufacturer of night vision goggles, was accused of shipping night-vision technology and components without export licenses to an unidentified Singapore-based contractor who then shipped the technology to a Chinese optics firm around 2001. The $100 million penalty included a $2 million criminal fine, a $50 million deferred prosecution penalty (which is tied to the development of advanced night-vision technology), the forfeiture of $28 million to the United States as the proceeds of its illegal actions, and a $20 million monetary penalty paid to the Department of State. As part of the plea agreement, ITT also entered into a deferred prosecution agreement as to two other criminal counts. The government will defer prosecution of those counts for five years in return for ITT accepting full responsibility for its illegal actions and successfully implementing a remedial action plan. See related ITT Industries instances, “Illegally Exporting Secret Military Data Overseas (State Dept. Administrative Proceeding)” and “Illegally Exporting Secret Military Data Overseas (U.S. Army Compliance Agreement).”

Misconduct Type
Import/Export
Enforcement Agency
Multiple Agencies
Contracting Party
International
Court Type
Criminal
Disposition
Pleaded Guilty
Date of Guilty Plea
3/27/2007
Contractors Involved Penalty
Total
ITT Industries $100,000,000
Further Information Released
Deferred Prosecution Agreement 11/5/2009
Plea Agreement 10/24/2008
U.S. Attorney Statement 10/24/2008
DOJ Press Release 3/28/2007
ITT Press Release 3/28/2007

See also:

Federal Contractor Misconduct Database