N.J. defense contractor admits having U.S. weapons parts made in China

YOU READ IT HERE FIRST: A New Jersey-based defense contractor agreed to pay $1.1 million in damages to the government today after putting American troops at risk by illegally subcontracting Defense Department work making parts for M4 and M16 rifles and M249 machine guns to a company in China.

Jerry DeMarco

07/12/2011 9:55 p.m.

Swiss Technology Inc. PHOTO

A representative of Swiss Technology, Inc. of Clifton admitted violating the Arms Export Control Act by shipping drawings and specifications to the People’s Republic of China instead of doing the work it contracted for.

The company circumvented federal regulations “in the name of greed,” said Peter T. Edge, Special Agent in Charge of New Jersey’s U.S. Immigration and Customs Enforcement’s Homeland Security said, following a hearing before U.S. District Judge Jose L. Linares in Newark. “When our troops’ safety is put in jeopardy, our national security is also compromised.”

“Our armed forces deserve the very best equipment to perform their missions in these difficult times,” said Edward T. Bradley, Special Agent in Charge of the Defense Department’s Northeast Field Office. “Fraudulent practices, designed to illegally enrich a corporation, and which could compromise the integrity and reliability of that vital equipment, is inexcusable.”

“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,” added U.S. Attorney Paul J. Fishman, whose office negotiated the agreement.

Swiss Tech landed Defense Department contracts from 2004 through 2009 to manufacture defense articles and parts for use in military operations.

Rather than manufacture the parts under its obligations, Swiss Tech exported DoD drawings, specifications, and sample parts to the People’s Republic of China without obtaining a license from the U.S. State Department, federal authorities said.

The result was $1,148,052 worth of parts – some of which were used in battle — that the government had to replace, they said.

Several agencies combined to investigate and prosecute the case, Fishman said. Among them: DCIS, ICE, the Justice Department’s National Security Division, and the Defense Department’s Air Force Office of Special Investigations and Army Criminal Investigation Division.

Handling the government’s case is Assistant U.S. Attorney Zahid N. Quraishi.

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