Chinese National Pleads Guilty to Trying to Smuggle Sensors Made for U.S. Military
In late July, following an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) directorate, a 28-year old Chinese national, Bo Cai, pled guilty in the U.S. District Court for the District of New Mexico to violations of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR) through a scheme to illegally export defense articles to the People’s Republic of China.
Cai conspired with his cousin to export sensors manufactured primarily for sale to the U.S. Department of Defense for use in line-of-sight stabilization and precision motion control systems. Because of an arms embargo against China, the United States does not issue licenses for the export of such sensors to China. Cai awaits sentencing and faces a maximum penalty of twenty years in prison for the AECA charge. After serving his sentence, Cai will be deported.
Procesadora Campofresco, Inc. Settles with the Office of Foreign Assets Control on Claims of Violating the Narcotics Trafficking Sanctions Regulations
Procesadora Campofresco, Inc. of Puerto Rico, agreed in late July to a $27,000 settlement with OFAC for six alleged violations of the Narcotics Trafficking Sanctions Regulations. Over a nine-month period in 2009 and 2010, Campofresco engaged in six transactions to purchase $344,016 worth of frozen passion fruit juice from Frutas Exoticas Colombiana S.A., an OFAC Specially Designated Narcotics Trafficker.
Although Campofresco did not voluntarily disclose the apparent violations, OFAC deemed the case non-egregious and acknowledged Campofresco’s implementation of remedial measures, including institution of an OFAC compliance program. OFAC agreed to settle for significantly less than the base penalty amount of $600,000.
Read the OFAC enforcement summary.