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FCA And ITAR — A Lethal Combination

Law360 (February 14, 2011, 2:43 PM EST) -- The government’s unprecedented use of the False Claims Act against Rocky Mountain Instrument Company (RMI) is a watershed moment in the world of export enforcement that significantly increases exposure for violations of the Arms Export Control Act (AECA) and the related International Traffic in Arms Regulations (ITAR).

On Oct. 29, 2010, the U.S. Department of Justice announced that RMI will pay $1 million to resolve allegations that the company violated the FCA.[1] The government’s FCA claims arose from an identical series of transactions that formed the...
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