Federal Civil Penalties Inflation Adjustment Act

FY 2003 Performance and Accountability Report
Bureau of Resource Management
December 2003
Report

The Federal Civil Penalties Inflation Adjustment Act of 1990 established annual reporting requirements for civil monetary penalties assessed and collected by Federal agencies. Civil penalties are defined as any non-criminal penalty, fine or other sanction for which a given dollar amount or maximum amount is specified by Federal law, and that is assessed or enforced by an agency as a result of an administrative proceeding or civil action in the Federal courts. The Department has assessed fines on individuals and companies for exporting defense materials without required approvals and for misrepresenting facts on export applications.

Federal Civil Penalties Assessed on Companies for Exporting Defense Materials Without Required Approvals
Company Name Violation Date
Assessed
Amount
Assessed
Payments Balance Outstanding September 30, 2002 Fiscal Year
2003 Assessments
Fiscal Year
2003 Collections
Balance Outstanding
September 30, 2003
BOEING COMPANY Reportedly exporting defense articles (technical data) and defense services to Russia, Ukraine, Norway, and Germany without the required approvals from the Department 9/29/1998 $7,500,000 $3,500,000 initially, then $800,000 for five subsequent years $800,000 $800,000
A&C INTERNATIONAL TRADE, INC. Knowingly and willfully exporting a defense article (pressurized pepper gas system) to the Peoples Republic of China without applying or obtaining the required approval from the Department 3/14/2000 $100,000 $33,333.34 initially,
then $33,333.33 for next two years
$66,666.66 $66,666.66 (delinquent
payments made)
LOCKHEED MARTIN CORPORATION Exporting defense articles and defense services in violation of the terms or conditions of other approvals that were provided by the Department, making proposals for the transfer of defense services, and by omitting material facts from export license applications 6/13/2000 $8,000,000 $1,500,000 for four years and $2,000,000 due in year five $3,500,000 $1,500,000 $2,000,000
BOEING COMPANY Violating the items and conditions of the Department's munitions licenses, exporting defense articles and services without a munitions license and omitting material facts from its applications for munitions licenses 3/30/2001 $3,800,000 $1,000,000 for three years and $800,000 in year four $1,800,000 $1,000,000 $800,000
SPACE SYSTEMS/LORAL, INC. Violating the express terms and conditions of the Department's munitions licenses and exporting defense services without a munitions license or other authorization to the People's Republic of China 1/9/2002 $14,000,000 $2,200,000 initially, then $1,685,714 for seven subsequent years $11,800,000 $1,685,714 $10,114,286
RATHEON COMPANY Export and attempted export of defense articles, defense services and technical data (troposcatter communication systems) to the government of Pakistan 2/27/2003 $3,000,000 $3,000,000 $3,000,000 $3,000,000
HUGHES ELECTRONICS CORP. & BOEING SATELLITE SYSTEMS Violating the terms and conditions of the Department's munitions licenses and exporting defense services without munitions licenses or other authorizations (and conduct relating to two failed launches of rockets carrying spacecrafts) to the People's Republic of China 3/4/2003 $12,000,000 $1,500,000 for
eight years
$12,000,000 $1,500,000 $10,500,000
AGILENT TECHNOLOGIES, INC. Exporting defense articles (scanners/receivers) to Israel and Singapore without obtaining an export license or written approval 8/20/2003 $225,000 $225,000 $225,000 $225,000
MULTIGEN-PARADIGM, INC. Exporting defense articles and services (software) without munitions licenses or other authorizations to the People's Republic of China, India, Israel, Singapore, Australia, South Korea, Taiwan, France, Japan, Canada, Czech Republic, Italy, Spain, United Kingdom, Sweden and Peru 9/25/2003 $250,000 $250,000 $250,000

TOTAL

 

$48,875,000

$17,966,666.66

$15,475,000

$9,777,380.66

$23,664,286