Armor Holdings to pay $10M penalty on UN contracts

July 13, 2011 - 4:59 PM

WASHINGTON (AP) — The Justice Department says Armor Holdings Inc. has agreed to pay a $10.29 million criminal penalty and will disgorge $5.69 million in profits over payoffs to win two United Nations contracts for body armor.

According to court papers in the case, an Armor Holdings subsidiary knew that part of a $200,000 commission it paid was to be used to induce a U.N. procurement official to award the contracts.

The misconduct took place before BAE Systems Inc. bought Armor Holdings in 2007.

The documents state that one of the executives who paid the $200,000 was Richard Bistrong. Bistrong is the government's chief witness in several criminal cases alleging that executives in the armaments industry violated the Foreign Corrupt Practices Act.

Bistrong has pleaded guilty to conspiring to violate the law.