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SEC probes Boeing deal with China-linked satellite project

The Boeing logo appears above a trading post on the floor of the New York Stock Exchange, in this Monday, July 24, 2017, photo. (Associated Press)
The Boeing logo appears above a trading post on the floor of the New York Stock Exchange, in this Monday, July 24, 2017, photo. (Associated Press)
Bloomberg

The U.S. Securities and Exchange Commission is looking into Boeing’s relationship with a California satellite-communications startup that allegedly is 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.

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 the project, which includes restricted technology, was funded with $200 million in Chinese government money, prompting Sen. Robert Menendez, D-N.J., 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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