US firm pleads guilty to illegal defense exports

AP News
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Posted: Jul 12, 2011 7:02 PM
US firm pleads guilty to illegal defense exports

A New Jersey-based defense contractor has admitted sending sensitive military drawings and specifications to China without authorization.

Swiss Technology Inc. of Clifton pleaded guilty Tuesday in federal court in Newark to one count of conspiring to violate the Arms Export Control Act.

Prosecutors say the company had a contract with the U.S. Department of Defense to provide parts for rifles and machine guns.

Rather than manufacture the parts itself, prosecutors say the firm sent drawings and specifications to a firm in China where they could be made more cheaply.

U.S. Attorney Paul Fishman says the company's attempt to cut corners and increase its profits could put American troops at risk.

The company has been ordered to pay more than $1 million in restitution.