Export Violation: BIS Denies Privileges to Multiple Entities for Attempted Exports to Syria

Posted by LizAnn Nealing

Two people and three companies that conspired to illegally ship web monitoring and controlling equipment to Syria were denied export privileges by the Bureau of Industry and Security (BIS) last month. The items in question are controlled by the Commerce Department for security and anti-terrorism purposes.

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Topics: Export Compliance, Export Violations

Iranian Corporation Pleads Guilty to Export Violation Involving Military Machinery

Posted by LizAnn Nealing

Falcon/ FIMCO, an Iranian instrumentation and machinery company, pleaded guilty to the export violation of “conspiracy to evade export licensing requirements” late last month. The company attempted to smuggle a machine with military and civilian applications from the U.S. to Iran, in conjunction with Hetran, Inc., also charged for their involvement.

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Topics: Export Management, Export Violations

Man Forfeits $65M and Faces Up to 20 Years in Jail for Export Violations

Posted by LizAnn Nealing

Last month, a naturalized U.S. citizen born in Moscow admitted that he was a part of network designed to smuggle approximately $65 million worth of electrical components from the U.S. to Russia. He has been charged with several export violations, including “one count of conspiracy to commit money laundering, one count of conspiracy to smuggle electronics from the United States, and one count conspiracy to violate the International Emergency Powers Act (IEEPA).”

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Topics: Export Management, Export Violations

Al-Naser Airlines Commits Export Violation, Denied Export Privileges

Posted by LizAnn Nealing

Al-Naser Airlines, a charter airline based in Iraq, along with Bahar Safwa General Trading and Ali Abdullah Alhay, have had their U.S. export privileges revoked for attempting to export civilian aircrafts into Iran. Additionally, Al-Naser Airlines, along with Syrian businessman Issam Shammout and Sky Blue Aviation, has been added to the terrorist list under Executive Order 13224 for providing “financial, material and technological support to Iran’s Islamic Revolutionary Guard Corpos-Qods Force.”

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Topics: Export Management, Export Violations

Man Arrested for Export Violation of Smuggling Electrical Components

Posted by LizAnn Nealing

Pavel Flider, a Russian national and naturalized U.S. citizen, was arrested last month for illegally smuggling electrical components from the United States to Russia as well as using laundered money to fund the operation. The items he smuggled had both civilian and military applications and are described as “controlled dual-use programmable computer chips capable of operating in austere environments.” Flider was indicted for Smuggling Goods, Conspiracy to Commit International Money Laundering, and Money Laundering in San Francisco on March 5th.

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Topics: Export Management, Export Violations

Taiwanese Man Sentenced to 24 Months in Prison for Export Violations

Posted by LizAnn Nealing

Hsien Tai Tsai, a Taiwanese businessman, was sentenced to 24 months in a federal prison last month by a U.S. judge for helping to export restricted machinery often used for weapons. He pleaded guilty to being involved in several commercial and financial transactions that undermined weapons of mass destruction sanctions. The judge gave him a lenient sentence for his crime because he assisted the government in its investigation. He was originally arrested in Estonia but was extradited to Illinois, where his trial took place.

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Topics: Export Management, Export Violations

Chinese Man Faces Export Violation Charges for Providing Nuclear Production Components to Iran

Posted by LizAnn Nealing

Sihai Cheng, who also goes by Chun Hai Cheng and Alex Cheng, arrived at Logan Airport in Boston early last month to face federal charges of conspiring to export items that can be used in the production of nuclear weapons to Iran. He was extradited from the United Kingdom to the U.S., where he now faces a 10-count indictment including charges of conspiracy, illegal export of U.S. goods to Iran and smuggling.

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Topics: Export Management, Export Compliance, Export Violations

CEO and Company Fined, Given Probation for Attempted Smuggling of Goods to Iran

Posted by LizAnn Nealing

Hetran Inc. and its CEO were sentenced by a judge earlier this month to pay a fine of $337,000 and sentenced to 12 months of probation for trying to smuggle machinery into Iran. The judge made both parties responsible for the payment. The judge also suspended a $500,000 fine to the Department of Commerce and allowed the CEO, Helmut Oertmann, to avoid 4 years in prison for cooperating with the investigation and pleading guilty to the crime.

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Topics: Export Management, Export Compliance, Export Violations

Wind River Systems Agrees to Pay $750,000 Fine for Unauthorized Encryption Exports

Posted by LizAnn Nealing

Wind River Systems, a subsidiary of Intel Corporation, has agreed to pay a $750,000 civil penalty for unauthorized encryption exports. The Alameda, California, company was charged with selling encryption software products to foreign governments and organizations on the BIS Entity List, which requires specific license requirements to do business with those entities.

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Topics: Export Management, Export Violations

Germany’s Second-Largest Bank to Pay Settlement of $600-$800 Million for Violating Sanctions

Posted by LizAnn Nealing

Commerzbank AG, the second-largest bank in Germany, is expected to pay $600-$800 million in fines as restitution to the U.S as a result of their dealings with Iran and other nations under U.S. sanctions. The U.S. started looking into Commerzbank back in 2010 and has since found that the bank took down identifying information from incoming wires in an attempt to hide anything that would raise questions.

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Topics: Export Management, Restricted Party Screening, Export Violations