WASHINGTON (AP) — ADC Telecommunications Inc. will pay the government $1 million to settle accusations that it sold federal agencies products manufactured in China.
According to the Justice Department's allegations, ADC made and sold modems and other hardware to federal agencies including the departments of Defense, Homeland Security and Interior. The sales were part of a General Services Administration contract.
The government said that from 2005 to 2008, ADC "knowingly manufactured and sold products from countries such as China that do not have reciprocal trade agreements with the United States and are not on the list of designated countries" allowed under those contracts. Goods covered under those contracts can be made only in countries that "trade fairly with the United States" as determined by the Trade Agreements Act.
ADC was based in Eden Prairie, Minn., but is no longer a standalone company. TE Connectivity, a Swiss company formerly known as Tyco Electronics, bought ADC in December 2010.
Shares of TE Connectivity fell slightly Monday, losing 16 cents to $31.22, on a down day for the markets.