OFAC Reports Record Penalties in July – In its July 2008 monthly report of civil penalties, OFAC reported that it had settled nine cases involving corporations and ten cases against individuals. During that month, OFAC imposed nearly $2,000,000 in penalties, including a $1,198,000 penalty on Maryland-based Minxia Non-Ferrous Metals, Inc. for allegedly purchasing or otherwise dealing in Cuban metals. The total amount of penalties reported in the July report is more than the sum of the penalties imposed by OFAC during the first six months of 2008. Penalties in August were significantly lower, with a total of only $19,148.
DDTC Imposes $4 Million Penalty on Lockheed for Arms Export Control, ITAR Violations – The Directorate of Defense Trade Controls (DDTC) imposed a $4 million civil penalty on the Lockheed Martin Company as a result of eight violations of the International Traffic in Arms Regulations (ITAR). The alleged violations included exporting classified and unclassified missile-related technical data to the United Arab Emirates Air Force. Lockheed Martin voluntarily disclosed the violations to DDTC.
Catering Company Pays~$600,000 to Settle Violations of Cuban Regulations – Gate Gourmet, Inc., an airline catering company, agreed to pay $581,901.54 to settle allegations that it supplied catering services to Cubana Airlines, referred business with Air Cubana to other suppliers, and funded employee travel to Cuba without a license.
Firm Ordered to Pay $500,000 on Planned Exports to Iran – Allied Telesis Labs, Inc., a North Carolina based US subsidiary of Japan’s Allied Telesis K.K., was ordered to pay a $500,000 criminal fine and placed on probation for two years after pleading guilty to one count of conspiracy to re-export advanced telecommunication products through the United Arab Emirates to Iran. The company was accused of planning to obtain a $95 million contract with the Iranian Information Technology Company to overhaul the telecommunications systems of about 20 Iranian cities, including Tehran.
Financial Firm Pays ~$100,000 to Settle Violations of SDN Procedures – A.G. Edwards and Sons Inc. remitted $122,358.35 to settle allegations involving its failure to freeze investment accounts owned by Specially Designated Narcotics Traffickers.
Indonesian Citizen Sentenced for Conspiracy to Violate Arms Export Control Act – Doli Sharief Pulungan, an Indonesian citizen, was sentenced to four years in federal prison for conspiring to export ITAR-controlled rifle scopes to Indonesia. The 100 Leupold Mark 4 CQ/T Riflescopes were designed to attach to M-16 and AR-15 assault rifles.
Professor Faces Up to 15 Years for Transferring Plasma Technology to Students – University of Tennessee Professor J. Reece Roth was convicted on eighteen counts of export control violations for permitting foreign graduate students access to controlled plasma technologies. The students were assisting on an Air Force project involving unmanned aerial vehicles.