United Technologies acknowledges coverup of sale of military software to China

The Washington Post  June 28, 2012

United Technologies, a major defense contractor, and two of its subsidiaries on Thursday acknowledged covering up the illicit sale of sensitive military software to China — technology that the country later used to develop its first attack helicopter.

Federal prosecutors announced criminal charges against the firms and a fine of more than $75 million for what they called a violation of U.S. export laws. Justice officials said the software sold to China posed a risk to American troops overseas and U.S. allies.

“The Justice Department will spare no effort to hold accountable those who compromise U.S. national security for the sake of profits and then lie about it to the government,” Lisa Monaco, the assistant attorney general for national security, said in a statement.

Connecticut-based United Technologies, which reported net sales of $58 billion in 2011, will pay the fine, along with Pratt & Whitney Canada and Hamilton Sundstrand Corp., as part of a settlement for lying to the government and delaying their disclosures about the illegal exports, officials said.

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