SEC Probes Boeing Deal With China-Linked Satellite Project
(Bloomberg) -- The U.S. Securities and Exchange Commission is looking into Boeing Co.’s relationship with a California satellite-communications startup that’s allegedly controlled by the Chinese government.
Global IP’s founders are suing a group of Chinese companies and individuals for allegedly taking control of their company through fraud. A December letter from the SEC requesting that El Segundo-based Global IP preserve documents and data relevant to the agency’s investigation was filed in the Los Angeles court case this month.
A Boeing spokesman couldn’t be reached immediately for comment after regular business hours.
The Commerce Department’s Bureau of Industry and Security has revoked Boeing’s export license for the satellite and Boeing has canceled its contract to build it, according to the court filing.
The Wall Street Journal reported last month that the project, which includes restricted technology, was funded with $200 million in Chinese government money, prompting U.S. Senator Robert Menendez to ask the Treasury and Commerce departments to review the transaction.
The satellite was intended to provide high-speed internet access to parts of Africa.
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