Meggitt-USA Agrees to $25 Million Penalty to Settle AECA and ITAR Violation Charges

On August 23, 2013, Meggitt-USA, Inc. (Meggitt), a Delaware corporation, agreed to a $25 million penalty to settle 67 charges of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR) violations in connection with the unauthorized export of defense articles, including technical data, the unauthorized provision of defense services, violation of the terms of provisos or other limitations of license authorizations, and the failure to maintain specific records involving ITAR-controlled transactions.

Over the last several years, Meggitt and its various subsidiaries submitted multiple disclosures to the Department of State involving hundreds of potential civil violations of the AECA and ITAR beginning in the mid-1990s. The majority of these violations were uncovered by Meggitt during a post-acquisition review of new companies.

Under the terms of the 30-month consent agreement with the Department, Meggit was assessed a civil penalty of $25 million, of which $3 million will be paid in installments and the remainder suspended on the condition the Department approves expenditures for self-initiated, pre-consent agreement remedial compliance measures and consent agreement-authorized remedial compliance costs. Meggitt cooperated with Department reviews, and implemented or has planned extensive remedial measures throughout its subsidiaries. For these reasons, the Department determined that an administrative debarment or suspension of Meggitt was not appropriate at this time.