Bureau of Industry and Security (BIS)

  • On September 28, BIS entered into a Settlement Agreement with Technoline SAL of Beirut, Lebanon to settle seven (7) alleged violations of the Export Administration Regulations (EAR). The company caused, aided, and/or abetted exports or re-exports to Syria of mass spectrometers, gas chromatographs, and consumables used by both products without a license. Technoline was assessed a civil penalty of $475,000 with $275,000 suspended for a period of two years.

Office of Foreign Assets Control (OFAC)

  • On September 7, OFAC announced World Class Technology Corporation (WCT) of Portland, Oregon, agreed to pay a $43,200 settlement for alleged violations of the Iranian Transactions and Sanctions Regulations (ITSR). The alleged violations involve WCT’s exportation of seven shipments of orthodontic devices, collectively valued at $59,886, from the U.S. to Germany, United Arab Emirates, and/or Lebanon, with knowledge or reason to know that the shipments were intended specifically for supply, transshipment, or re-exportation to Iran.
  • On September 13, OFAC announced PanAmerican Seed Company of West Chicago, Illinois, agreed to pay a $4,320,000 settlement for alleged violations of the Iranian Transactions and Sanctions Regulations (ITSR). The alleged violations involve the indirect export of seeds, primarily of flowers, to two Iranian distributors on 48 occasions between 2009 and 2012.

Securities and Exchange Commission (SEC)

  • On September 12, the SEC announced the former chairman/CEO of Harris Corporation's subsidiary in China agreed to pay a $46,000 penalty for violating the Foreign Corrupt Practices Act (FCPA) by facilitating a bribery scheme that provided illegal gifts to Chinese government officials in order to obtain and retain business for the company.
  • On September 20, the SEC announced that Nu Skin Enterprises, Inc. agreed to pay $765,688 to settle charges that it violated the internal controls and books-and-records provisions of the FCPA. The violations arose from a payment its Chinese subsidiary, Nu Skin (China) Daily Use & Health Products Co. Ltd., made to a charity to obtain the influence of a high-ranking Chinese Communist party official to impact an on-going provincial agency investigation.
  • On September 28, the SEC announced Anheuser-Busch InBev agreed to pay $6 million to settle charges that it violated the FCPA and stopped a whistleblower who reported the misconduct through a separation agreement that prevented the employee from continuing to voluntarily communicate with the SEC. An SEC investigation found that the company used third-party sales promoters to make improper payments to government officials in India to increase the sales and production of company products in that country.

SEC and Department of Justice (DOJ)

  • On September 29, the SEC announced Och-Ziff Capital Management Group agreed to pay nearly $200 million to settle civil charges for violations of the FCPA. Och-Ziff CEO Daniel S. Och also agreed to pay nearly $2.2 million to settle charges that he caused certain violations along with CFO Joel M. Frank, who also agreed to settle the charges. The SEC detected the misconduct while proactively scrutinizing the way that financial services firms were obtaining investments from sovereign wealth funds overseas. The SEC’s subsequent investigation of Och-Ziff found that the fund used intermediaries, agents, and business partners to pay bribes to high-level government officials in Africa.
  • In a related action, Och-Ziff entered into a three-year Deferred Prosecution Agreement (DPA) with the DOJ. Additionally, its wholly-owned subsidiary, OZ Africa Management GP LLC, pled guilty to conspiracy to violate the FCPA and agreed to pay a criminal penalty of more than $213 million.