Government Contractor to Pay Penalty for Recordkeeping and Accounting Failures

Government contractor L3 Technologies Inc. ("L3") agreed to pay a $1.6 million penalty to settle SEC charges alleging recordkeeping and internal accounting failures.

The SEC Order determined that L3's Army Sustainment Division improperly recorded $17.9 million in revenue from the U.S. Army "based on invoices associated with unresolved claims against the U.S. Army that were created in L3's internal accounting system but not delivered to the customer." Without admitting or denying the findings, L3 agreed to pay the $1.6 million penalty.