The U.S. Department of State and Interturbine Aviation Logistics Gmbh, Germany and its Texas Branch Office, Interturbine Aviation Logistics GmbH, LLC (Interturbine), have reached an agreement to resolve violations of the Arms Export Control Act (AECA) and International Traffic in Arms Regulations (ITAR) committed by Interturbine in August and September of 2004.
Under the Consent Agreement signed this week to settle the case, Interturbine agreed to pay a civil penalty of $1,000,000, of which $900,000 will be suspended. $500,000 will be suspended on the condition that Interturbine has already applied that amount to self-initiated, pre-Consent Agreement remedial compliance measures. $400,000 will be suspended on the condition that Interturbine maintains its self-initiated exclusion from all ITAR regulated activities. If within the two-year term of this Consent Agreement Interturbine decides to become involved in ITAR regulated activities, it will use this $400,000 for additional remedial compliance measures agreed to by the Department. Interturbine will also have an independent audit to ensure that its company-wide automated export control system prevents its involvement in all ITAR regulated activities.
Interturbine has acknowledged the seriousness of its conduct and has cooperated with the Department’s investigation, expressed regret for these activities, and taken steps to improve its compliance programs. Interturbine has also undertaken to make amends by implementing the remedial compliance actions specified in this Consent Agreement. For these reasons, the Department has determined that an administrative debarment of Interturbine is not appropriate at this time.
The Consent Agreement and related documents are available to the public on the website of the Directorate of Defense Trade Controls (www.pmddtc.state.gov