Court documents say neither United Technologies, Pratt & Whitney Canada nor Hamilton Sundstrand made any disclosures to U.S. authorities about their knowledge of Pratt & Whitney Canada’s illegal exports to China for several years.
A law enforcement source said the companies did not even launch an internal inquiry until a non-governmental organization involved in examining “socially responsible” investments in February 2006 asked United Technologies whether Pratt & Whitney Canada’s involvement in the Z-10’s development might violate U.S. export laws. The group threatened to recommend that investors sell their holdings in UTC.
Subsequently, in July 2006, UTC and its subsidiaries began a series of disclosures to U.S. authorities, although investigators say that these were found to contain false statements.
Among the alleged false statements were assertions by the companies that they did not learn until 2003 or 2004 about the military role of the Z-10, whereas in fact all three companies were earlier aware that Pratt & Whitney Canada officials knew at the project’s inception in 2000 that the Z-10 was intended for the Chinese military.