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Three plead guilty in military export case

June 28, 2012 at 7:26 PM

BRIDGEPORT, Conn., June 28 (UPI) -- United Technologies Corp. and two UTC subsidiaries have pleaded guilty to helping China develop a military helicopter, the Justice Department said Thursday.

UTC, a defense contractor based in Connecticut and its subsidiaries Pratt & Whitney Canada Corp. and Hamilton Sundstrand Corp. have all agreed to pay $75 million as part of a settlement with the state of Connecticut, the U.S. Justice Department and the State Department, officials said in a statement.

The Justice Department said it would receive $20.7 million of the settlement, while $55 million would go to the State Department.

However, payment of $20 million of the State Department's share will be suspended in exchange for the companies agreeing to be monitored for compliance with export law for the next two years.

The charges were connected with export of software that went into China's Z-10 military attack helicopter, the Justice Department said in a statement.