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Military supplier admits to selling US military secrets

ITT Corp, a major manufacturer of night-vision goggles used by the US military, pleaded guilty on Tuesday to illegally sending classified military information to other countries, including China, and agreed to pay a US$100 million penalty.

This is the largest conviction of a big military contractor for violations of arms export controls, and ends a five-year federal investigation in which the government found ITT to have enlisted a front company to "set up an end run" around laws limiting the transfer of military technologies to other countries.

The government said ITT did so to take advantage of cheaper manufacturing overseas.

"ITT has put in jeopardy our military's nighttime tactical advantage and America's national security," US Attorney John Brownlee said in a statement. "The criminal actions of this corporation have threatened to turn on the lights on the modern battlefield for our enemies and expose US soldiers to great harm."

"I believe that our American soldiers are the principal victims of ITT's crimes," Brownlee said.

As part of a plea agreement filed on Tuesday in the US District Court in Roanoke, Virginia, ITT pleaded guilty to two felony counts relating to the exportation, without a license, of night-vision technology to China, Singapore and Britain.

ITT, the nation's 12th largest military contractor, agreed to pay US$50 million in fines, penalties and forfeitures to the government. In addition, as part of a government remedial program, the company agreed to invest US$50 million in developing advanced night-vision technology.
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