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Improper Use of Imported Goods in DOD Contract Yields $1.5 Million in Forfeiture

Friday, December 08, 2017
Sandler, Travis & Rosenberg Trade Report

The U.S. Attorney’s Office in St. Louis announced recently that a defense contractor will forfeit $1.5 million after admitting that optical materials it imported from China and used in weapons sights manufactured under contracts with the Department of Defense were improperly certified as compliant with the Buy American Act.

According to a press release, the company agreed to make the payment pursuant to a pretrial diversion agreement in which it further agreed to enter a guilty plea to a false statement charge if it does not meet the full terms of the agreement. This agreement was reached after an investigation into the company’s business practices with respect to the full range of import and export rules governing the procurement of materials used to manufacture defense systems, including the Buy American Act and the International Traffic in Arms Regulations. The agreement reflects that the company took measures to fix the problems and agreed to a compliance program to be monitored by DoD.

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