US firm that sent military, aerospace designs to China to pay up to $27M in settlement

By Darren Lyn

HOUSTON, US (AA) - A 3D printing company from the state of South Carolina was ordered on Monday to pay at least $4.54 million to the US government for sending military and aerospace designs to China.

3D Systems Corporation also agreed to a separate $20 million administrative settlement with the US Department of State in addition to a $2.77 million settlement with the Department of Commerce, potentially bringing the overall payment to $27.31 million.

“Sending export-controlled blueprints for aerospace and military electronics to China is detrimental to US national security,” said Assistant Secretary for Export Enforcement Matthew Axelrod in a statement.

The US Attorney's Office for the Northern District of Texas announced the settlement to resolve allegations that 3D Systems violated the False Claims Act by "improperly transmitting export-controlled technical data to China in violation of the export control laws of the United States" in connection with certain NASA and Department of Defense (DOD) contracts.

According to the US Justice Department, 3D Systems completed manufacturing projects both directly and indirectly on contracts issued by the DOD and NASA with potentially classified information.

By agreeing to the settlement, the claims against the company will remain as allegations only, with "no determination of liability."

“The company is pleased to have reached a settlement with the agencies and remains committed to continuing to enhance its export controls program,” said 3D Systems in a statement.