CHICAGO (AP) — The Boeing Co. has agreed to pay $15 million to settle federal allegations that it broke the law by selling commercial airplanes equipped with a small chip that has military applications.
It is among the largest fines a company has ever faced for violations of the Arms Control Export Act, which regulates the sale of defense products to overseas interests. The Chicago-based company also agreed to oversight requirements because settlements over previous violations didn't result in full compliance.
According to the State Department charges, Boeing shipped 94 commercial jets overseas between 2000 and 2003 that carried the QRS-11 gyrochip embedded in the flight boxes. The chip is part of a backup system that maintains an artificial horizon for the pilots, Boeing spokesman Tim Neale said Saturday.