Category: Violations

For any industry, the “cost of doing business” inevitably increases over time. For companies engaged in ITAR-controlled work, the cost of not doing business compliantly is about to skyrocket. DDTC has announced that, effective August 1, 2016, the maximum amount that can be levied as a Civil Monetary Penalty will change. Most notably, for each...

A Florida woman, Amin Yu (a/k/a Yu Amin, a/k/a Amy Yu) was charged in a superseding indictment with conspiring to illegally export U.S. technology to a Chinese state-owned entity. This technology is used in underwater drones. Among other charges in the indictment (including illegal exports, money laundering, and acting as an agent for a foreign...

How do you build a “culture of trade compliance” in your organization? You might as well ask, “How do you eat an elephant?” In both cases, the answer is seemingly simple, yet also complex – one bite at a time. A quick search for “culture of compliance” on the internet yields thousands of scholarly and...

Chinese national Fuyi “Frank” Sun has been arrested in connection with a plot to illegally export high-grade carbon fiber from the United States to China. Sun was arrested while traveling to New York to close a deal with a distributor of the fiber which is typically used for aerospace and military purposes. Turns out the...

A Singapore man, Lim Yong Nam (aka Steven Lim) was extradited to the U.S. from Indonesia (where he’d been detained since October 2014) to face charges stemming from his alleged role in a conspiracy to illegally export radio frequency modules to Iran. According to the U.S. Government, some of these modules ended up being used...

Earlier this month, Erdal Kuyumcu, the CEO of Global Metallurgy, LLC, was arrested for allegedly exporting a cobalt-nickel metallic powder from the United States to Iran. According to the Department of Justice press release, Kuyumcu’s company planned to ship the metallic powder through an intermediary in Turkey in order to conceal the ultimate destination of...

Earlier this month, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) denied export privileges for two individuals and three companies. The actions center around a conspiracy to illegally export web-monitoring and controlling equipment and software to Syria. In particular, this conspiracy involved the Syrian Telecommunications Establishment (STE). “The settlement announced today results...

Recently, a South Carolina company, STREIT USA, was fined $3.5 million to settle charges related to the sale of U.S.-origin vehicles to end-users located in multiple countries. The company is part of STREIT Group, which is a global manufacturer of armored vehicles for military, security, luxury and other markets. As part of the settlement, $1.5...

Last week, Lockheed Martin agreed to buy Sikorsky Aircraft from United Technologies (UTC) for $9 billion. The sale, which is pending U.S. Government approval, represents the largest defense industry deal of the past 20 years, according to The Wall Street Journal. Lockheed is already the world’s largest defense contractor, and Sikorsky is the largest military...

Last week, oil and gas giant Schlumberger plead guilty to facilitating trade with Iran and Sudan, in violation of U.S. sanctions. The parent company’s Schlumberger Oilfield Holdings Ltd. (SOHL), which is a wholly-owned subsidiary of Schlumberger Ltd., agreed to a guilty plea for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by willfully...