Recently there have been an increased number of enforcement cases from the Bureau of Industry and Security (“BIS”), Office of Foreign Asset Controls (“OFAC”), and Directorate of Defense Trade Controls hitting the compliance newsletter circuit and we thought it worthwhile to outline the issues for our readership and note some key takeaways from the agency’s…
Recently, Yi-Chi Shih, of Hollywood Hills, CA was sentenced to more than five years in prison for scheming to illegally export integrated circuits with a military end-use to China. In addition, he was also ordered to pay a fine of $362,968 for restitution and $300,000 to the IRS. Aside from these convictions, Y-Chi Shih was…
On April 30,2021, FLIR Systems, Inc., agreed to a settlement of $307,922 with the Department of Commerce on what are being called egregious violations of the Export Administration Regulations (EAR), Section 764.2.g. The Department of Commerce settlement alleges FLIR, between November 2012 and December 2013, made “inaccurate or incomplete representations, statements, or certifications to the…
On April 27, 2021, the Directorate of Defense Trade Control (DDTC) released the contents of the latest Consent Agreement imposed on Honeywell International, Inc., who agreed to the settlement of the civil penalty of $13M for thirty-four (34) violations of the International Traffic in Arms Regulations specific to the unauthorized export or retransfer of technical…
Unlicensed Exports Apply To All Foreign National Students It’s been several years since the imprisonment of John Reece Roth, a former University of Tennessee electrical engineering professor who was convicted of conspiracy, wire fraud and fifteen (15) violations of exporting ITAR controlled defense articles. Professor Roth was involved in a U.S. Air Force contract for…
Last week, the U.S. Department of Justice announced that a former Raytheon engineer was sentenced to 38 months in prison for violations of the Arms Export Control Act (AECA). According to the press release, Wei Sun, 49, pleaded guilty to one felony count of violating the AECA. He was sentenced by District Court Judge Rosemary…
There is an unprecedented rise of ransomware attacks against companies and financial institutions who are trying to cope with the global impact of COVID-19. As a result, many companies are finding themselves victims to cyber-attackers demanding monumental payments to avoid shutting down their business operations. OFAC (Office of Foreign Asset Control) concerns that must be…
Why are Customs Regulations Important? US Customs at its core is the top law enforcement agency for America. It was established to help control the flow of goods and people in and out of the country. One of their main obligations is to collect duties and taxes on the merchandise that is imported. They also…
In a press release earlier this month, the Bureau of Industry and Security (BIS) announced a tightening of controls against Chinese tech firm Huawei Technologies. BIS also added an additional 38 Huawei affiliates to the Entity List – an action that will impose a license requirement for all items subject to the Export Administration Regulations (EAR)…
This past week, the Trump administration announced a ban on exports of certain types of Personal Protective Equipment (PPE) in response to the COVID-19 crisis. The new rule became effective immediately and will last four months (until August 8, 2020). While this type of activity is unusual due to its breadth and scope, those of…