The Bureau of Industry and Security fined a U.S. company $55,000 for illegally exporting rifle scopes to Canada, a Sept. 3 order said. The company, New York-based Carl Zeiss SBE, LLC, shipped the scopes on 10 separate occasions despite knowing that the exports were subject to the Export Administration Regulations, BIS said. The company did not seek a license from BIS for the shipments, valued at nearly $890,000 combined. Carl Zeiss must pay the fine by Oct. 1 or risk having its export privileges revoked.
Four people, including a civilian employee of the Navy working as an engineer, were arrested for their involvement in a scheme to illegally download and sell export controlled technical drawings of U.S. military systems, the Department of Justice said Sept. 2. Navy engineer Mark Fitting of Berlin, New Jersey, allegedly worked with Lighthouse Point, Florida, resident Melony Erice to sell the drawings to Newport Beach, California-based Newport Aeronautical Sales Corp. (NASC), which later resold the documents to foreign customers, the agency said. Fitting and Erice allegedly sold at least 5,000 technical manuals and drawings to NASC, working with NASC employees George Posey and Dean Mirabal, both of Costa Mesa, California, who also were arrested.
The U.S. seized two websites run by a U.S.-sanctioned foreign terrorist organization, the Justice Department said Sept. 2. The websites, Aletejahtv.com and Aletejahtv.org, belonged to Kata’ib Hizballah, “an Iran-backed terrorist group active in Iraq,” which the Office of Foreign Assets Control listed in 2009 as a Specially Designated National. The group used the websites to publish videos and articles designed to “further Kata’ib Hizballah’s agenda,” the Justice Department said. P. Lee Smith, a top official within the Bureau of Industry and Security's Office of Export Enforcement, said the group was using U.S.-based online networks “to promote Iran backed terrorist propaganda.”
A United Kingdom national pleaded guilty to attempting to export a gas turbine to Iran, following his arrest at a Florida airport in August by federal agents upon his arrival from the United Arab Emirates, the U.S. Attorney’s Office for the Northern District of Florida said in a Sept. 1 press release. Colin Fisher had been trying to buy a gas turbine from Pensacola-based Turbine Resources International LLC on behalf of a UAE company. Fisher and TRI’s CEO and president, James Meharg, both knew the gas turbine was eventually destined to Iran. Meharg is already serving a 40-month sentence in federal prison for his part in the scheme. Fisher was arrested before the deal could be consummated, and the turbine was seized before it was shipped. Fisher faces up to 20 years in prison for violations of the International Emergency Economic Powers Act, and up to 10 years for attempted smuggling. A sentencing date has been set for Nov. 10,
A British Virgin Islands company agreed to plead guilty to charges related to the evasion of sanctions on North Korea, the Department of Justice said in an Aug. 31 news release. The company, Yang Ban Corporation, admitted it “deceived banks in the U.S. into processing transactions for North Korean customers,” using “financial cutouts and front companies,” the U.S. Attorney’s Office for the District of Columbia said. In addition to the guilty plea, Yang Ban will pay a penalty of more than $673,000, which includes a fine of about $112,000.
A researcher at a California university is being investigated for trying to transfer sensitive U.S. software or technical data to a Chinese company on the U.S. Entity List, the Justice Department said Aug. 28. Guan Lei, a Chinese national and researcher at the University of California, Los Angeles, was arrested for allegedly destroying evidence on a hard drive that may have implicated him in the illegal software transfer, the agency said. The Justice Department said it is investigating whether Guan, of Alhambra, California, tried to send the software to China’s National University of Defense Technology.
The Department of Justice unsealed two indictments charging four U.S. citizens and a Chinese citizen with conspiring to buy oil from Iran to be sold to a Chinese refinery. The indictments, outlined in court records filed Aug. 25, charge all five with violating the International Emergency Economic Powers Act and trying to evade U.S. sanctions against Iran. Justice announced the charges in February (see 2002120031).
Five people are facing federal charges over allegations of illegal filing of drawback claims, the U.S. Attorney's Office for the Northern District of California said in a news release. An Aug. 12 grand jury indictment, which was unsealed Aug. 25, charged Dale Behm of Shell Knob, Missouri; Yong Heng Liang of Daly City, California; Joshua Stanka of Katy, Texas; Joshua Clark of Fair Oaks Ranch, Texas; and Michael Choy of Etobicoke, Ontario, Canada, “with conspiracy, wire fraud, and related charges related to an alleged scheme to submit fraudulent claims for refunds on import duties,” the release said.
The head of the Bureau of Industry and Security on Aug. 19 affirmed a more than $30 million penalty against a shipping company for export violations after ordering a judge to review the fine for being too high. Commerce Acting Undersecretary for Industry and Security Cordell Hull said in March the fine was perhaps disproportionate to the violations committed by Singapore-based Nordic Maritime Pte. Ltd and chairman Morten Innhaug (see 2003170040), but the judge “affirmed” the penalty. Although Hull said the administrative law judge’s “narrow analysis” for the reasoning behind the recommended penalty was “erroneous,” he said BIS will accept the fine. “BIS believes the penalty should be affirmed in its entirety,” Hull wrote.
The Bureau of Industry and Security issued an order temporarily denying export privileges for three Indonesian companies and three people for illegally exporting U.S. aircraft parts to Iran’s Mahan Air. In an Aug. 20 press release, BIS said the companies operate an “international procurement scheme” for the sanctioned Iranian airline and will be barred from exporting or receiving U.S.-origin goods for 180 days. The suspension may be renewed.