Big fine for US body armour maker

13 July 2011 Last updated at 22:06 ET

Armor Holdings made $7.1m in revenue from the sale of its body armour to the UN, the SEC said

A US security equipment manufacturer has paid a $16m (�10m) fine to settle charges it bribed a UN official to buy its body armour for peacekeepers.

From 2001 to 2006, Armor Holdings funnelled illicit payments to an official who helped deliver it the armour contract, US authorities said.

The alleged misconduct took place before the company was acquired by UK defence giant BAE Systems in 2007.

A BAE spokesman said it had "co-operated extensively" in the probe.

"It is important to acknowledge that all of the matters in question occurred well before Armor's acquisition by BAE Systems," Brian Roehrkasse told the BBC in an e-mailed statement.

'Reprehensible'

Florida-based Armor Holdings agreed to pay the fines in order to settle charges brought by the US Department of Justice and the Securities and Exchange Commission (SEC).

According to the SEC, the firm paid a total of $222,750 in 92 separate payments to an intermediary with the understanding some of that would be given to the UN official.

The company made $7.1m in revenue and $1.5m in profit through the UN contract, after making at least 92 payments to the intermediary between 2001 and 2006, the SEC said in court filings.

In addition, from 2001 to June 2007, the company paid $4.4m to intermediaries who brokered the sale of its products to foreign governments, then improperly disguised the payments on its books, the SEC said.

With those acts, the SEC said, Armor Holdings violated the US laws prohibiting bribery of foreign officials, as well as record-keeping laws.

"Illicit payments to UN officials are no less reprehensible than bribes to foreign government officials," Robert Khuzami, Director of the SEC's enforcement division, said in a statement.

"The important process of selecting body armour for peacekeepers should not be affected by which company pays the best bribes."

BAE Systems acquired Armor Holdings in July 2007.

Source: http://www.bbc.co.uk/go/rss/int/news/-/news/world-us-canada-14148635

computer processor anger profile soccer