Processing your request


please wait...

Enforcement Action Dataset

 

Initiation Date:    06/29/1999  Information

Prosecuting Agency:    US Department of Justice

Name of Prosecuting Attorneys:    Unknown

Assisting Agencies:    Unknown

Type of Action:    DOJ Criminal Proceeding

Docket or Case Number:    99-cr-00673

Court:    C.D. California

Origin of the Proceeding:    Unknown

Whistleblower:    Unknown

Case Status:    Resolved


Summary  Information

On July 1, 1999, two Litton Industries units pleaded guilty to fraud and conspiracy and agreed to pay $18.5 million to settle allegations of having made illegal payments to obtain defense business in Greece and Taiwan.

The Litton Applied Technology division, in San Jose, pleaded guilty to one count of conspiring to defraud the Government. Litton Systems Inc. Canada pleaded guilty to the same charge, plus one count each of mail fraud and causing a false statement to be made to the Government.

The negotiated plea ends investigations of a $150 million deal to sell radar for F-16 fighter planes to Greece and $47 million in contracts to upgrade Taiwanese military aircraft. In the Taiwan case, prosecutors accused the Litton units of paying more than $4.3 million to Richard M. Hei, a retired Taiwanese Air Force major, for using his contacts to help secure contracts. Another Litton unit, Litton Systems International Inc., was named as an uncharged co-conspirator. In Greece, the Applied Technology division was alleged to have paid more than $12 million to four Greek agents for help in selling the F-16 radars in 1993. Litton's Applied Technology International division was named as a co-conspirator, but was not charged. Most of the payments were uncovered in 1997 during Federal audits of the sale.

In both cases the companies were accused of hiding the payments from American regulators.

The company agreed to pay $16.5 million in fines, plus restitution in the amount of $737,000 and costs of investigation in the amount of $1,263,000.00.






Country(ies) involved:    Greece, Taiwan

Region(s) involved:    Asia-Pacific, Western Europe

Total $ Sanctions Imposed by U.S. Government (FCPA-Related Charges Only):    $18,501,200

Sanction to Bribe Ratio:    $18,501,200 / $16,300,000 = 113.50 %

Sanction to Revenue Ratio:    $18,501,200 / $197,000,000 = 9.39 %

Sanction to Profit Ratio:    Not Applicable

FCPA Matter Name:   Litton Industries' Involvement in Greece and Taiwan in 1993 Information

Number of Related Enforcement Actions (Including This Enforcement Action):    1

Country(ies) involved:    Greece, Taiwan

Region(s) involved:    Asia-Pacific, Western Europe

Total $ Bribery Payments:    $16,300,000

Total $ Revenue Generated from Bribery:    $197,000,000

Total $ Profit Earned or Expenses Avoided from Bribery:    Unknown

Total $ Sanctions Imposed by U.S. Government (FCPA-Related Charges Only):    $18,501,200

Sanction to Bribe Ratio:    $18,501,200 / $16,300,000 = (113.50 %)

Sanction to Revenue Ratio:    $18,501,200 / $197,000,000 = (9.39 %)

Sanction to Profit Ratio:    Not Applicable

Name:    Litton Applied Technology Division

Entity Type:    Subsidiary

Place of Incorporation:    United States

HQ Country(ies):    United States

Industry:    Aerospace/Defense

FCPA Claims:    None

Related Claims:    None

Statutory Basis for FCPA Jurisdiction:    Not Applicable


Name:    Litton Systems Canada, LTD.

Entity Type:    Subsidiary

Place of Incorporation:    Canada

HQ Country(ies):    Canada

Industry:    Aerospace/Defense

FCPA Claims:    None

Related Claims:    None

Statutory Basis for FCPA Jurisdiction:    Not Applicable

Name:    Litton Industries Inc.

Entity Type:    Public Company

Place of Incorporation:    United States

HQ Country:    United States

Industry:    Aerospace/Defense

Period of Bribery:   1993 - 1993

Total Bribery Payments:    $16,300,000

Total Revenue Generated from Bribery:    $197,000,000

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Greece, Taiwan

Region(s) involved:    Asia-Pacific, Western Europe

Officials Potentially Influenced (Name; Title; Organization): 

  • Name Unknown, Agents; Greek government
  • Richard H. Mei; Retired Air Force Major; Taiwanese Air Force

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    None/Unknown

Third-Party Intermediary:   

  • Unnamed private consultants , Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    Unknown

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Payments in Greece

Period of Bribery:   1993 – 1993

Total Bribery Payments:    $12,000,000

Total Revenue Generated from Bribery:    $150,000,000

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Greece

Region(s) involved:    Western Europe

Officials Potentially Influenced (Name; Title; Organization):  

  • Name Unknown, Agents; Greek government;

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    None/Unknown

Third Party Intermediary:    Unnamed private consultants - Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    Unknown

Purpose of Bribe:    Obtain/retain business

TRANSACTION OVERVIEW
Payments in Taiwan

Period of Bribery:  

Total Bribery Payments:    $4,300,000

Total Revenue Generated from Bribery:    $47,000,000

Total Profit Earned or Expenses Avoided from Bribery:    Unknown

Country(ies) involved:    Taiwan

Region(s) involved:    Asia-Pacific

Officials Potentially Influenced (Name; Title; Organization):  

  • Richard H. Mei; Retired Air Force Major; Taiwanese Air Force;

Affiliates, Subsidiaries and Joint Ventures Involved in the Misconduct:    None/Unknown

Third Party Intermediary:    Unnamed private consultants - Agent/Consultant/Broker

Type of Bribe:   Money

Cash, Wire or Check:    Unknown

Purpose of Bribe:    Obtain/retain business

Misconduct by Subsidiary?  Yes

Parent:    Litton Industries Inc.

  • Subsidiary:  Litton Applied Technology Division

    • Percentage of Ownership:   
    • Direct or Indirect Ownership:   
    • Parent Had Knowledge of Sub’s Bribery?:    No
    • Subsidiary Expressly Alleged to Be Parent's Agent:    No
    • Parent Liable for Sub Misconduct?:    No
  • Subsidiary:  Litton Systems Canada, LTD.

    • Percentage of Ownership:   
    • Direct or Indirect Ownership:   
    • Parent Had Knowledge of Sub’s Bribery?:    No
    • Subsidiary Expressly Alleged to Be Parent's Agent:    No
    • Parent Liable for Sub Misconduct?:    No

M&A Negotiated or Completed During Misconduct, Investigation, or Resolution?     No

Not Applicable

Mitigating Factors Referenced by the Government (Company Defendants):

Defendant Self-Report Cooperation Voluntary Remedial Measures Misconduct Limited to Low Level Individuals Other factors
Litton Applied Technology Division          
Litton Systems Canada, LTD.          

Aggravating Factors Referenced by the Government (Company Defendants):

Defendant Insufficient Cooperation Insufficient Remedial Measures
Litton Applied Technology Division    
Litton Systems Canada, LTD.    

Total Global Monetary Sanctions (All Charges):    $18,501,200

Total Monetary Sanctions Imposed by U.S. Government (FCPA-Related Charges Only):    $18,501,200

Total Monetary Sanctions Owed to U.S. Government (FCPA-Related Charges Only):    $18,501,200

Case Status:    Resolved


Disposition:    Plea Agreement

Date of Disposition:    06/29/1999

Litton Applied Technology Division

—  Total Monetary Sanctions Imposed by U.S. Government for Defendant (FCPA-Related Charges Only):    $18,501,200

—  Organizational Probation:    N/A

—  Compliance Obligation:    No

—  Reporting Obligation:    N/A

—  Admission of Guilt/Acceptance of Responsibility:    Yes


Litton Systems Canada, LTD.

—  Total Monetary Sanctions Imposed by U.S. Government for Defendant (FCPA-Related Charges Only):    $18,501,200

—  Organizational Probation:    N/A

—  Compliance Obligation:    No

—  Reporting Obligation:    N/A

—  Admission of Guilt/Acceptance of Responsibility:    Yes

    Note: The sanctions noted above may have been imposed jointly and severally on multiple defendants, or they may resolve claims against more than one defendant in one or more proceedings. You should review the underlying resolution documents and case summaries to better understand how sanctions were levied.

No Document Title Date Category