Two ocean carriers recently paid a combined total of $2.65 million in civil penalties, the Federal Maritime Commission announced May 18. The penalties, assessed to Ocean Network Express Ptd. Ltd. (ONE) and Wan Hai Lines, Ltd., were paid to “resolve allegations of misconduct," the FMC said.

Cary Yan, former president of a New York-based non-governmental organization, was sentenced to three years and six months in prison for paying bribes to Marshall Islands officials in violation of the Foreign Corrupt Practices Act, DOJ announced. Yan conspired with his assistant, Gina Zhou, as part of a bribery scheme to pass legislation that would benefit Yan's business interests. Zhou was sentenced in February to two years and seven months in prison.

The Bureau of Industry and Security again renewed the temporary denial order for Russia's Rossiya Airlines, saying the company has continued to illegally operate planes in violation of U.S. export controls, including on flights into and out of Russia going to and from Egypt and Turkey. The agency renewed the denial order for another 180 days from May 12. BIS first suspended the export privileges of the airline in May 2022 (see 2205200008) and renewed the TDO in November (see 2211170050).

Amsterdam-based multinational conglomerate Koninklijke Philips will pay more than $62 million to settle charges it violated the Foreign Corrupt Practices Act related to its sales of medical diagnostic equipment in China, the SEC announced. Without admitting guilt, Philips agreed to pay $15 million in civil penalties and over $47 million in disgorgement and prejudgment interest.

DOJ seized 13 web domains used by Specially Designated Nationals and Global Terrorists and their members linked with Lebanese Hezbollah. The department received court authorization to seize five domains registered to the Public Interest Registry and eight domains registered to Verisign, DOJ said May 11. It said sanctioned parties cannot "obtain services, including website and domain services," without a license from the Office of Foreign Assets Control.

The Bureau of Industry and Security this week suspended the export privileges of five people, including four for illegal exports of guns or ammunition and one person for illegally exporting services to North Korea.

The U.S. District Court for the Southern District of New York should toss the U.S. claim that FTX crypto-exchange founder Sam Bankman-Fried violated the Foreign Corrupt Practices Act's anti-bribery provision since the government failed to allege an essential element of the FCPA, Bankman-Fried said in a motion to dismiss. The U.S. said payments were made to unfreeze assets belonging to cryptocurrency firm Alameda Research but didn't say payments were made to "secure or retain a contract with a foreign government agency, gain an unfair advantage, or achieve an objective of the sort addressed in the FCPA’s text or legislative history or in relevant caselaw" (U.S. v. Samuel Bankman-Fried, S.D.N.Y. # 22-00673).

The Commerce Department again renewed a temporary export denial order for Mahan Airways because the airline continues to violate the order and the Export Administration Regulations. Mahan Airways has been on the banned list since 2008, and Commerce in its May 5 notice said the Iranian airline has continued to fly to and from Iran from Russia and China in violation of U.S. export controls. It also said the airline in April reportedly began direct flights from Iran to Minsk, Belarus, and also has helped repair planes belonging to Russia's Aeroflot, which is also subject to a temporary denial order (see 2303300013). The latest renewal for Mahan is for 180 days from May 5.

The Bureau of Industry and Security this week revoked the export privileges of two people after they were convicted of smuggling weapons and ammunition from the U.S. to Mexico.

New York lawyer Robert Wise pleaded guilty to participating in a scheme to make around $3.8 million in payments to maintain six real properties in the U.S. owned by sanctioned Russian oligarch Viktor Vekselberg. Wise pleaded guilty to one count of conspiring to commit international money laundering and faces a maximum of five years in prison, DOJ said April 25. He also forfeited more than $3.7 million and agreed "to be satisfied" by a $210,441 payment.