Settlements

ST-258
Litton Industries / Litton Applied Technologies / Litton Systems, Inc. Canada
Litton Industries
United States
United States Attorney for the Central District of California
Taiwan, China; Greece
1999
06/30
Unknown
Legal Person
Criminal
Guilty Plea
Criminal Fine, Criminal Restitution, Investigation Costs
$18,501,600.00
$16,500,000
$737,000
$1,264,600
$0
Art.16, Art.26
Art. 1, Art. 2
Conspiracy to Defraud the Government (Litton Applied); Conspiracy to Defraud the Government, Causing False Statement to the US, Mail Fraud (Litton Systems Canada)
Conspiracy to Defraud the Government (Litton Applied); Conspiracy to Defraud the Government, Causing False Statement to the US, Mail Fraud (Litton Systems Canada)
Yes
According to the Court Docket Report, pursuant to the E-Government Act, the final judgments are not available for public viewing. (Source: US v. Litton Applied Technologies, et al, Case No. 2:99-cr-00673 (C.D. Cal.), Docket Report retrieved via Pacer on October 4, 2011). The US Department of Justice website on FCPA Enforcement Actions lists the case but no documents. (http://www.justice.gov/criminal/fraud/fcpa/cases/litton-applied.html). According to the Court Docket Report in US v. Litton Applied et al, Litton Applied and Litton Systems were ordered to jointly pay $18.5 million, consisting of $16.5 million in fines, restitution of $737,000, Cost of Investigation of $1,263,000 and special assessment of $1,600. The recipient of the restitution was not expressly stated. According to the New York Times, the two Litton Industries units had "agreed to pay $18.5 million to settle allegations of having made illegal payments to obtain defense business in Greece and Taiwan. [ ] The negotiated plea ends investigations of a $150 million deal to sell radar for F-16 fighter planes to Greece and $47 million in contracts to upgrade Taiwanese military aircraft. In both cases, the company was accused of paying private consultants for help in getting business. [ ] In the Taiwan case, prosecutors accused the Litton units of paying more than $4.3 million to Richard M. Hei, a retired Taiwanese Air Force major, for using his contacts to help secure contracts. [ ] In Greece, the Applied Technology division was alleged to have paid more than $12 million to four Greek agents for help in selling the F-16 radars in 1993. [ ] In both cases the companies were accused o hiding the payments from American regulators. Federal law does not ban the use of foreign consultants, but require the disclosure of any commissions that are promised or paid." (Source: New York Times, "2 Litton Units Plead Guilty To Illegal Foreign Payments," July 1, 1999.)