In 1961, it formed a division for developing communications, telemetry, and space navigation systems for satellites.
As its expansion increased, it borrowed $15 million from the Massachusetts Mutual Life Insurance Company in 1965.
The incident arose as a result of an investigation into the launch failure of Intelsat 708, a Space Systems/Loral-built satellite.
In the agreement Loral officials neither admitted nor denied the government's charges; Loral executives acknowledged "the nature and seriousness of the offenses alleged by the department in the draft charging letter, including the risk of harm to the security and foreign policy interests of the United States", and stated that they wished to make amends through the payment of restitution.
Schwartz subsequently released a statement accepting "full responsibility for the matter" and portrayed the incident as an error by a single Loral employee.