Jet-engine maker Pratt & Whitney Canada Corp. has pleaded guilty to two U.S. criminal charges related to the illegal export of military software to China.
The Longueuil, Que.-based company, its parent United Technologies Corp. and another subsidiary, Hamilton Sundstrand Corp., have agreed to pay more than $75-million (U.S.) to the U.S. government as part of the settlement of the case brought by the departments of justice and state.
Pratt & Whitney Canada pleaded guilty to violating the State Department’s International Traffic in Arms Regulations as well as the False Statements Act, United Technologies said in a news release Thursday.
The charges were in connection with the export to China of U.S.-made military software installed in Pratt & Whitney Canada engines, used by China to test its first military attack helicopter, the Z-10.
United Technologies said in April the violation was related to the export of modifications to electronic engine control software, sent to China in 2002 through 2004.
The software was used to develop the Z-10. United Technologies said it voluntarily disclosed the violation to regulators.
“We accept responsibility for these violations and we deeply regret they occurred,” United Technologies chairman and chief executive officer Louis Chenevert said in a statement.
As a result of the settlement, P&W Canada will be partly stripped of its right to get new export licenses.
United Technologies and Hamilton Sundstrand also admitted to making false statements to the U.S. government about the illegal exports.