The Financial Crimes Enforcement Network is adjusting its civil monetary penalties for inflation, the agency said in a notice. The new amounts include higher maximum penalties for various recordkeeping and banking violations associated with illegal funds transfers, which can sometimes violate U.S. sanctions. The changes take effect Jan. 24.

Byungsu Kim, a South Korean national, was sentenced to 24 months in prison for trying to illegally export live Dudleya succulent plants worth over $150,000 to Asia from California, the U.S. Attorney's Office for the Central District of California said Jan. 20. Kim and his co-conspirators removed the plants from the ground at different state parks in Northern California. Kim also has to pay $3,985 in restitution for the expense of replanting the illegally taken plants after his arrest, the judge ordered.

The Office of Foreign Assets Control made a technical amendment to the definition of “applicable schedule amount,” which establishes a base penalty for non-egregious sanctions violations cases that do not involve a voluntary self-disclosure. OFAC has periodically raised its “applicable schedule amount” to correspond to the agency’s civil monetary penalties, which are adjusted annually for inflation (see 2104090006). Under the new definition, the applicable schedule amount “will automatically rise with OFAC’s CMPs, removing the necessity of updating the applicable schedule amount on an annual basis,” the agency said. The change becomes effective Jan. 21.

The Bureau of Industry and Security revoked export privileges for an Idaho resident after the person tried to illegally export firearms from the U.S., BIS said Jan. 20. Khaldoun Hejazi was convicted March 2, 2020, of exporting defense articles on the U.S. Munitions List, which violated the Arms Export Controls Act. Hejazi was sentenced to 30 months in prison and three years of supervised release, fined $30,000 and assessed $100. BIS denied Hejazi’s export privileges for five years from the date of conviction.

Kambiz Attar Kashani, a citizen of both the U.S. and Iran, has been charged with conspiring to illegally export U.S. goods, technology and services to the Iranian government, and others, in violation of the International Emergency Economic Powers Act, the U.S. Attorney's Office for the Eastern District of New York said. A complaint was unsealed in the district court revealing the nature of the charges against Kashani and the extent of his alleged malfeasance. According to the complaint, Kashani conspired to ship goods, including two subscriptions to proprietary computer software, multiple fixed attenuators, six power supplies and various storage systems, to the Central Bank of Iran -- an entity recognized by the Treasury Department as an agency of the Iranian government and thus classified as a Specially Designated National. The complaint said that CBI provided assistance to "Lebanese Hizballah, a terrorist organization, and to the Qods Force of Iran's Islamic Revolutionary Guards Corps." Kashani allegedly arranged for the transshipping schemes while acting as the principal for two United Arab Emirates front companies. The defendant used the companies to procure electronic goods and technology from various U.S. technology companies for the CBI without obtaining the proper Office of Foreign Asset Control licenses, the U.S. Attorney's Office said.

Charles Edwards, former acting inspector general for the Department of Homeland Security, Office of Inspector General, pleaded guilty Jan. 14 to his role in a scheme to steal "proprietary software and sensitive databases" from the federal government, the U.S. Attorney's Office for the District of Columbia said. Edwards worked for DHS-OIG from 2008 to 2013, where he had access to software systems for case management and for storing sensitive personal identification information of employees. Edwards left DHS and founded Delta Business Solutions. The government said that from at least 2015 to 2017, he stole software from DHS-OIG to use in developing commercial case management software that his company could then sell to government agencies, it said.

A European Union law holding that entities cannot comply with the requirements in the laws of a third country applies even in the absence of an order to comply with the third country's laws, the European Court of Justice said in a December 2021 judgment. However, an EU company can terminate contracts with a person or entity subject to U.S. sanctions without giving reasons for such termination or without authorization from the European Commission, a summary of the judgment said. But, the European high court said the burden of proof is on the party terminating the contract to show it nixed the contract for a reason other than compliance with the third country laws.

Peter Sotis and Emilie Voissem, two Florida residents, were sentenced Jan. 12 for conspiring to and illegally attempting to ship export-controlled rebreather diving equipment to Libya, the Department of Justice said. Sotis will spend 57 months in prison while Voissem will serve a five-month sentence in prison and a five-month term in home confinement. The scheme to illegally export the rebreather equipment -- an item that is export controlled due to its enhanced underwater breathing capabilities and dual use as a military and civilian item -- was hatched in August 2016.

The Bureau of Industry and Security this week revoked export privileges for four residents of Texas who illegally exported defense items or weapons ammunition to Mexico.

The Federal Maritime Commission is adjusting its civil monetary penalties for inflation, the agency said in a notice released Jan. 13. The new amounts include higher maximum penalties for various violations of the Shipping Act and other shipping rules, including “adverse impact on U.S. carriers by foreign shipping practices.” The changes take effect Jan. 15.