On 14 May 2015, OFAC filed a motion for summary judgment seeking to dismiss a court challenge filed by Epsilon Electronics, Inc. (“Epsilon”) against a $4 million civil penalty imposed by OFAC. In imposing the fine last year, OFAC determined that Epsilon, a seller of car-audio equipment based in California, exported equipment to the United Arab Emirates with knowledge or reason to know that it would be reexported to Iran. Epsilon then sued OFAC to challenge both the imposition and the amount of the penalty. In its motion for summary judgment, OFAC is arguing that its determination is entitled to deference, its findings were reasonable in light of the evidence, the penalty was not excessive, and Epsilon was given a fair opportunity to present its case before OFAC imposed the penalty. Epsilon’s response is due on 15 June. The case is Epsilon Electronics Inc. v. United States Department of the Treasury, Case No. 14-CV-2220, before Judge Reggie Walton of the United States District Court for the District of Columbia.