I read this story this morning and thought about throughout the day. Here’s the deal:

Under the agreement, ITT will pay $50 million upfront in penalty fees to the Department of State and the United States, including a $28 million forfeiture fee. ITT will also be restricted from shipping devices to certain parties for at least one year.

The remainder $50 million fee will be suspended for five years as part of a deferred prosecution penalty. During this interim, the company will have the opportunity to reduce its fee on a dollar-for-dollar basis by investing in the development of more advanced night vision technology for the military.

So how much did ITT make on illegally providing classified equipment to China, Singapore and the UK??? It must have been a huge amount. And why are we STILL doing business with them??? They get to use $50 million of the fine to develop more advanced products???? Why??????? Why not have some other company do it???????????? This is screwed up if you ask me.

ITT, the leading provider of night vision technology for the military, agreed to plead guilty to illegally providing classified equipment to China, Singapore and the United Kingdom, the Department of Justice announced on Tuesday.

In the first criminal conviction of a defense contractor under the Arms Export Control Act, the company will plead guilty to the export of defense articles without a license and for making misleading statements in arms export reports.

“ITT’s exportation of this sensitive technology to China and other nations jeopardized our national security and the safety of our military men and women on the battlefield,” said Kenneth Wainstein, the assistant attorney general for the National Security Division, in a statement on Tuesday.

The agreement caps a bitter years-long investigation by the Department of Defense into the company’s practices - government officials accused ITT (nyse: ITT - news - people ) and its legal team of delaying the process and failing to fully cooperate.

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