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Exports of Military Technical Data to India Yield $250,000+ Penalty

Thursday, April 09, 2015
Sandler, Travis & Rosenberg Trade Report

The former owner of two New Jersey defense contracting businesses will pay more than $250,000 after pleading guilty to conspiracy to violate the Arms Export Control Act by exporting military technical drawings to India without prior approval. A Department of Justice press release states that among the methods she used was posting this information to the password-protected website of a church where she was a volunteer web administrator.

The woman was also charged with manufacturing substandard parts that were not up to spec in violation of the contracts she signed with the Department of Defense. For example, the press release states, she and an associate in India provided false and misleading material certifications and inspection reports for failed wing pins that caused the DoD to ground approximately 47 fighter aircraft for inspection and repair.

The DOJ states that as part of her plea agreement the woman must pay $181,015 to the DoD, which includes the cost of repair for the grounded aircraft, and has consented to a forfeiture judgment of $77,792, which represents the dollar value of her fraudulent contracts with the DoD.

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