WASHINGTON - A U.S. defense contractor pleaded guilty July 12 to one charge of conspiring to illegally export U.S. Defense Department weapons plans to China in an apparent money-saving scheme, the Justice Department said.
From 2004-09, New Jersey-based Swiss Technology had contracts with the Defense Department to make rifle and machine gun parts to use in military operations, the Justice Department statement said.
But rather than manufacture the parts itself, Swiss Technology outsourced plans for the work to China "at a much cheaper price per unit" without first obtaining the required license from the U.S. State Department, the statement said.
"We simply can't risk that companies trying to manufacture military equipment on the cheap will expose our troops to more danger than they already face," said Paul Fishman, U.S. Attorney for New Jersey.
Swiss Technology admitted that it entered into the Chinese contracts for its own financial benefit, the statement said.
The government said the fraudulent contracting meant a loss of more than $1.1 million to DoD.
Under terms of the plea agreement, Swiss Technology will pay that money back to the Pentagon. Sentencing is scheduled for Nov. 15.
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