Optics Company Agrees to $25 Million Penalty for ITAR Violations

On December 5, 2008, Qioptiq S.a.r.l., a Luxemborg optics company, agreed to a Consent Agreement with the Directorate of Defense Trade Controls (DDTC) involving a $25 million civil penalty. The Proposed Charging Letter outlines the facts and circumstances surrounding the 163 alleged violations of the Arms Export Control Act (AECA). DDTC has also published the Order in the matter and an Annex of Compliance Measures.

Qioptiq, an optics company with operations in the U.S., Singapore, UK, Germany and Hungary, had acquired Thales High Technology Optic Group companies. These companies were primarily involved in the manufacturing of quality optic components for use in both commercial and military applications. A large portion of Thales Singapore's business was and continues to be the manufacturing of military optics used in night vision equipment. U.S. night vision equipment manufacturers relied heavily on the Singaporean facility for supplying optical components, sub-assemblies, and related parts. Thales Singapore was an important supplier to ITT Night Vision.