The Federal Aviation Administration plans to impose its biggest ever fine on a commercial drone company.
The FAA proposed a record $1.9 million fine against aerial photography company SkyPan International, for flying drones in congested airspace in New York and Chicago.
The Chicago based company operated 65 unauthorized flights from March 2012 to December 2014, the FAA alleges.
It said 43 flights were in highly restricted airspace around New York.
"Flying unmanned aircraft in violation of the Federal Aviation Regulations is illegal and can be dangerous," FAA chief Michael Huerta said.
"We have the safest airspace in the world, and everyone who uses it must understand and observe our comprehensive set of rules and regulations."
The agency also said the drones were not equipped with transponders and altitude monitoring equipment.
"The FAA further alleges that on all 65 flights, the aircraft lacked an airworthiness certificate and effective registration, and SkyPan did not have a Certificate of Waiver or Authorization for the operations," the agency said.
FAA spokesman Les Dorr said the fine proposed is so large because SkyPan failed to discontinue the flights after being warned by FAA inspectors.