Seven individuals and five corporate entities based in the United States, France, the United Arab Emirates (U.A.E.) and Iran have been indicted in the Middle District of Georgia for their alleged roles in a conspiracy to illegally export military components for fighter jets and attack helicopters from the United States to Iran. One of the defendants and his company were sentenced on June 22, 2011, with the individual receiving nearly five years in prison. Another defendant and his company have admitted their illegal conduct and also pleaded guilty in the investigation.
Archive for the ‘Denied & Restricted Parties’ Category
The Directorate of Defense Trade Controls announced that due to recent events in Kyrgyzstan that the review of applications involving Kyrgyzstan “may be delayed.” (Do not think to yourself that the processing of all applications for all countries has always been delayed.) DDTC also advised applicants that “approvals should not be assumed.” (more…)
G&W International Forwarders (G&W) agreed to settle a charge of aiding and abetting an export of an EAR99 Stack Sizer Screening Machine to Indian Rare Earths, Ltd., which is on the Proliferation Entity List in Supplement No. 4 to Part 744 of the Export Administration Regulations. G&W agreed to pay $20,000 (in 5 installments) for the violation.
Two interesting points: First, the freight forwarder got nailed for arranging the export to a party on the Entity List. This shows that forwarders and other parties involved in facilitating exports can be penalized for participating in illegal exports. I have not heard that the actual exporter got penalized in this case. I do not know who the exporter is, but I got this website when I googled Stack Sizer Screening Machine: http://www.derrickcorp.com/webmodules/catCatalog/dtl_Product.aspx?ID=33 and that company is in Buffalo with G&W. I do not know why the exporter got penalized but if I had to make a wild guess, I would say maybe the actual exporter did a voluntary disclosure and maybe the exporter did not warn G&W it was doing a disclosure so that G&W could do its own disclosure.
The second interesting point is that $20,000 penalty is not much of a deterrent. I doubt you can use this case to convince your management that you should be doing a better job of screening against the denial lists. In fact, an unscrupulous person could argue that it is cheaper to pay a $20k fine than to implement comprehensive denial list screening procedures. Of course, penalties are based on an assessment of aggravating and mitigating factors.
Aviation Services International (“ASI”), Robert Kraaipoel, and Niels Kraaipoel reached settlement agreements with the Commerce Department for their involvement in illegal shipments from the US via third countries to Iran and for some apparently foiled attempts to do so. The three parties agreed to be placed on the Denied Parties List: Seven years each for ASI and Robert, three years for Niels. Apparently, two of their three attempts to send stuff illegally to Iran failed to reach Iran. I guess that goes to show that even if you are not a good illegal exporter, you can get in a lot of trouble. (more…)
OFAC recently announced its largest sanctions policy ever…$536 million. Credit Suisse AG, a Switzerland-based bank agreed to the momentous fine after processing 5,000 electronic funds transfers (EFTs) on behalf of banks and individuals in Cuba, Iran, Sudan, and Burma among other countries. (more…)