Northrop Grumman Agrees to Pay $470,000 after Voluntary Disclosure of Reexport Violations
January 2008
Northrop Grumman Corporation of Los Angeles, California has voluntarily self-disclosed violations to the Commerce Department’s Bureau of Industry and Security. The company and Litton Industries, Inc., which Northrop acquired in April 2001, committed 131 violations of the Export Administration Regulations. A significant portion of the violations involved unlicensed reexports from the UK to a wide range of relatively friendly countries. The items were specially designed components for navigation equipments and they were illegally delivered to the Philippines, Singapore, Malaysia, Italy, and the United Kingdom from January 1998, to September 2002.
Northrop has agreed to pay $400,000 in civil penalties to settle the allegations of the 131 violations. The Commerce Department said that because Northrop voluntarily disclosed all information and fully cooperated with the investigation, Commerce decided to give a large break in fines.
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