United Technologies Corp. is paying $55 million to settle federal charges it violated export controls in selling restricted technology to China in the form of helicopter engine control software.
UTC”™s Stratford-based subsidiary Sikorsky Aircraft Corp. was not implicated, with the case involving engine control software from Hamilton Sundstrand used for helicopter engines produced by Pratt & Whitney Canada. UTC and federal officials did not immediately identify individuals by name who were involved in the violations.
Pratt & Whitney Canada pleaded guilty to violating the U.S. State Department”™s International Traffic in Arms Regulations (ITAR), as well as the False Statements Act.
Under the settlement agreement, Hartford-based UTC said it will invest $20 million in compliance programs, adding it has already spent $30 million since 2006 to “strengthen its compliance infrastructure,” in its words.
“Export controls are an integral part of safeguarding U.S. national security and foreign policy interests,” said CEO Louis Chenevert, in a prepared statement. “As a supplier of controlled products and technologies to the Department of Defense and other domestic and international customers, we are committed to conducting business in full compliance with all export laws and regulations. We accept responsibility for these past violations and we deeply regret they occurred.”
Prior to the statement from Chenevert, NBC 4 New York reported a settlement was expected to be in the tens of millions of dollars, citing unidentified sources.
