MTS Systems Corporation To Pay $7.75 Million To Settle Federal Civil Claims
MINNEAPOLIS—Earlier today, the U.S. Attorney’s Office for the District of Minnesota approved a settlement through which MTS Systems Corporation agreed to pay $7.75 million to resolve a civil claim lodged against it by the federal government. Separately, the U.S. Attorney’s Office has declined criminal prosecution of MTS relative to this matter, provided no further evidence of criminal wrongdoing is discovered.
On March 12, 2008, MTS, an Eden Prairie-based corporation that supplies companies worldwide with equipment for testing mechanical products, among other things, pleaded guilty to two criminal misdemeanor counts for submitting to the U.S. Department of Commerce false or misleading export control filings. During the guilty plea hearing, MTS admitted that the export license applications submitted in 2003 and 2004 failed to disclose that its equipment might be shipped to entities involved in nuclear activities. Such disclosure is required under federal law.
Then, between March 12, 2008 and March 11, 2011, MTS certified several times to the federal government that during the previous three years, it had not been convicted of any criminal wrongdoing, including making false statements to government entities. During that time period, MTS used those false certifications to win numerous government contracts totaling millions of dollars.
This matter was litigated by the U.S. Attorney’s Office for the District of Minnesota and the U.S. Department of Commerce. Assistant U.S. Attorney Chad Blumenfield represented the United States.