Earlier this afternoon, the State Department issued a press release announcing a settlement it had reached with Interturbine Aviation Logistics GmbH, Germany, and its Texas branch office, Interturbine Aviation Logistics GmbH, LLC, for alleged violatons of the Arms Export Control Act and the International Traffic in Arms Regulations (“ITAR”). Under the agreement Interturbine agreed to a $1 million dollar fine, $900,000 of which would be suspended provided that these amounts were applied to Interturbine’s ITAR-related compliance programs and measures.

One part of the press release deserves particular attention:

$400,000 [of the suspended $900,000] will be suspended on the condition that Interturbine maintains its self-initiated exclusion from all ITAR regulated activities.

I suspect that I am not alone here in wondering how voluntary or “self-initiated” Interturbine’s self-debarment was. Although I’m certain that the State Department’s Directorate of Defense Trade Controls (“DDTC”) didn’t resort to rubber truncheons, heavy volumes of the phone book, bright lights and sleep deprivation, it wouldn’t surprise me if this self-debarment was strongly urged by DDTC officials while asking Interturbine officials how they thought they would look in orange. This is, after all, the first time I’ve seen a company adopt a lengthy self-debarment as the result of export violations.

The best part of the press release, however, is this:

The Department has determined that an administrative debarment of Interturbine is not appropriate at this time.

That seems to me not far removed from saying that, in light of the defendant’s suicide, the prosecution has decided not to seek the death penalty.

UPDATE: A source for Interturbine contacted me and said that the State Department’s reference to “self-initiated exclusion from ITAR activities” isn’t entirely accurate. The company says that none of its products are ITAR-controlled and that the company was simply continuing its existing policy of not dealing in ITAR-controlled products. The re-sale of the Dow Corning product was atypical and not a result of any intention by the company to deal in ITAR-controlled products.