Loral to Pay Civil Fine
Jan. 10, 2002
WASHINGTON (AP) _ Loral Space & Communications announced Wednesday it will pay the government $14 million to settle a long-running investigation of how the company provided highly sensitive information to China after a Chinese rocket launch failed.
Loral, which will pay the money as a civil fine to the State Department, said the Justice Department has terminated its criminal investigation and will not pursue the issue further.
Loral's chairman and its chief executive officer, Bernard Schwartz, is a major campaign donor to the Democratic Party.
At issue in a Justice Department probe was whether Loral illegally helped the Chinese in 1996 by advising them after a rocket carrying a Loral satellite exploded. The Pentagon concluded in a report that sensitive technology involving missiles was transferred to the Chinese. Loral denied its assistance helped China military.
In a statement, Schwartz said Loral ``made an immediate and voluntary disclosure to the State Department'' when the company learned an employee had mistakenly sent a report on the rocket failure to the Chinese.
``Loral accepts full responsibility for the matter and expresses regret for its failure to obtain appropriate State Department approval,'' Schwartz said in the statement.
On the Net: State Department: http://www.state.gov/
Loral Space & Communications: http://www.loral.com/