Tagged: ITAR

31 Oct, 2024

Raytheon’s FCPA and ITAR Case (Part III of IV)

Raytheon’s comprehensive settlement included FCPA violations and failures to make required disclosures to the Defense Department concerning fees and commissions. This portion of the settlement was filed in the Eastern District of New York. Raytheon formed a joint venture with a French company. Its bribery scheme involved a subsidiary of the joint venture, Integrated Defense Systems (“IDS”), which was controlled by Raytheon. Between approximately 2012...

General

28 Oct, 2024

Raytheon Reaches Comprehensive Settlement with Justice Department and Pays $950 Million to Resolve False Claims Act, FCPA and ITAR Violations (Part I of IV)

Raytheon Company (Raytheon) — a subsidiary of defense contractor, RTX (formerly known as Raytheon Technologies Corporation) — agreed to pay over $950 million to resolve the Justice Department’s investigations into: (i) a major government fraud scheme involving defective pricing on certain government contracts; (ii) violations of the Foreign Corrupt Practices Act (FCPA); and (iii) the Arms Export Control Act (AECA) and its implementing regulations, the International Traffic...

General

24 Oct, 2024

DDTC Fines Precision Castparts Corp. $3 Million for AECA and ITAR Violations

In a significant enforcement action, the U.S. Department of State’s Directorate of Defense Trade Controls (“DDTC”) has charged Oregon-based Precision Castparts Corp. (“PCC”) with multiple violations of the Arms Export Control Act (“AECA”) and the International Traffic in Arms Regulations (“ITAR”). These charges stem from unauthorized exports of sensitive technical data to foreign nationals employed by one of PCC’s subsidiaries, Mold Masters Intl., LLC (“Mold...

General

17 Jul, 2024

District Court Rejects Challenges to ITAR Criminal Charges

On July 9, 2024, District Judge David Hale in Kentucky denied motions to dismiss and motions to suppress filed by four defendants against a criminal case involving ITAR charges for illegal exports of sensitive, defense-related diagrams to Chinese companies. The Justice Department has charged Quadrant Magnetics LLC and three executives, Phil Pascoe, Scott Tubbs, and Monica Pascoe in a nine-count indictment for the illegal shipment...

Podcasts

31 Mar, 2024

Episode 315 — Boeing Pays $51 Million for ITAR Violations

Boeing continues to struggle with its core business activities. As troubles mount for Boeing, it is clear that it continues to suffer from real and pervasive culture issues that have been reflected in serious safety failures, financial difficulties, regulatory violations and serious reputational damage. Boeing’s troubles permeate every part of its organization — from the board to senior executives, to its operations and its overall...

Uncategorized

5 Mar, 2024

Boeing Reaches $51 Million Settlement with State Department for ITAR Violations

Boeing continues to struggle. As troubles mount for Boeing, it is clear that it suffers from real and pervasive culture issues that have been reflected in serious safety failures, financial difficulties, regulatory violations and serious reputational damage. Boeing’s troubles permeate every part of its organization — from the board to senior executives, to its operations and its overall ethics and compliance commitment. As a result...

General

3 Feb, 2023

Department of State Updates ITAR U.S. Persons Abroad (“USPAB”) Guidance

Alex Cotoia, Regulatory Manager at The Volkov Law Group, rejoins us for a posting on recent ITAR Guidance on U.S. Persons Abroad. Alex can be reached at [email protected]. On January 5, 2023, the U.S. Department of State’s Directorate of Defense Trade Controls (“DDTC”) published updated guidance concerning authorizations issued to U.S. Persons Abroad (“USPABs”) as defined in 22 C.F.R. Section 120.62. Current regulations require all...

General

3 Jan, 2023

A New Year’s Resolution for Companies involved in Defense Business

Jessica Sanderson, a Partner at The Volkov Law Group, rejoins us for an important posting on the importance of compliance with defense trade controls. Jessica can be reached at [email protected]. On December 5, 2022, the Department of State, Directorate of Defense Trade Controls (“DDTC”) issued new Compliance Program Guidelines, “intended to provide an overview of an effective compliance program and an introduction to defense trade...

General

9 Apr, 2020

Videoconferencing and Export Controls

Janet Longo, Regulatory Compliance Analyst at The Volkov Law Group, joins us for a posting on videoconferencing and compliance export controls. Janet can be reached at [email protected]. As the Covid-19 virus is proliferating, so is the practice of conducting business through videoconferencing from home. While many commentators have discussed the serious data privacy and security problems associated with video conferencing, we’ve been thinking about the...

General

3 Feb, 2020

Airbus Agrees to Pay $4 Billion in Global Settlement of Foreign Bribery and ITAR Violations (Part I of IV)

In a blockbuster case, the Justice Department announced a global settlement with Airbus SE, a manufacturer of civilian and military aircraft, under which Airbus agreed to pay over $4 billion (yes, with a “B”) to resolve charges with the United States, France, and the United Kingdom for its role in a bribery scheme, and to resolve Airbus’ violation of the International Trade in Arms Regulations...