A Pennsylvania man was charged with illegally exporting guns from the U.S. to St. Lucia, the Justice Department said Sept. 23. Thomas Harris of Croydon allegedly purchased and smuggled 38 firearms to St. Lucia, failing to inform a shipping company that his shipments contained weapons.
A former employee for a Virginia night-vision equipment manufacturer pleaded guilty to selling night vision devices and components over the internet, the Justice Department said Sept. 23. Steven Rosine stole the equipment while working as a production engineer at Harris Corp.’s manufacturing facility in Roanoke, where he had access to the company’s equipment. The Justice Department said Rosine, of Troutville, Virginia, stole and sold image intensifier tubes, night vision systems and other parts, a majority of which were made using “classified production data” and controlled under the International Traffic in Arms Regulations. Rosine made more than $119,000 from selling the ITAR-controlled items. He faces a maximum 10-year prison sentence and a possible fine of up to $250,000.
A U.S. citizen was sentenced to 21 months in prison for stealing technology data from U.S. companies and illegally exporting it to South Korea, the Justice Department said Sept. 16. Si Mong Park stole technical proprietary data from two American defense contractors where he worked as a software engineer, the agency said. In 2011, he took data related to military aircraft and a missile system to South Korea, presenting the data to non-U.S. people to “drum up business for his company,” the Justice Department said. The information contained technical data subject to export controls under the Arms Export Control Act and the International Traffic in Arms Regulations. Along with the prison sentence, he was sentenced to three years of supervised release.
The Bureau of Industry and Security revoked Walid Chehade’s export privileges after he was convicted of illegally exporting guns and gun parts to Lebanon, a Sept. 21 order said. Chehade, of Westlake, Ohio, was convicted May 8, 2019, and sentenced to time served, a $5,000 fine and one year of supervised release. BIS revoked Chehade’s export privileges for seven years from the date of conviction, which means until May 8, 2026.
The owner of a Chicago technology company was charged with illegally exporting computer equipment to a Pakistani government nuclear research agency, the Justice Department said Sept. 21. The indictment charges Chicago-area resident Padula Syed, who owns Chicago-based BSI USA as well as Pakistan-based Business System International Pvt. LTD. Syed and Business Systems International were charged with conspiracy to violate the International Emergency Economic Powers Act and foreign trade regulations, and violating IEEPA.
A Jacksonville, Florida, woman pleaded guilty to filing false export information to illegally ship military-related boats and engines to China, the Department of Justice said Sept. 16. Yang Yang submitted false information in the Automated Export System after trying to order seven combat rubber raiding craft with engines from a U.S. manufacturer, the agency said (see 1911040022). She faces a maximum 15-year prison sentence.
The Office of Foreign Assets Control fined a New York telecommunications company and its subsidiary nearly $900,000 for exporting goods and providing services to a sanctioned government entity in Sudan. The company, Comtech Telecommunications Corp., exported warrantied satellite equipment and provided services and training to the Sudan Civil Aviation Authority (SCAA), OFAC said in a Sept. 17 notice. Along with the fine, Comtech said in a settlement agreement it will bolster its sanctions compliance program, including more frequent risk assessments, stricter internal controls and improved employee compliance training.
The U.S. is seeking to seize more than $955,000 belonging to two China-based companies for acting as intermediates for North Korea’s purchase of telecommunications equipment from ZTE, the Department of Justice said Sept. 11. The companies -- Ryer International Trading Limited and Rensy International Trading Co., Limited -- allegedly helped North Korea illegally buy millions of dollars worth of U.S.-origin parts from ZTE between 2010 and 2016 by negotiating contracts, processing payments and receiving goods on behalf of North Korean customers. DOJ alleged Ryer and Rensy also acted as conduit for North Korean money laundering through sanctioned North Korean banks.
FedEx is considering appealing a Sept. 10 federal court decision (see 2009110038) that dismissed the shipping company’s lawsuit against the Bureau of Industry and Security, a FedEx spokesperson said. The company, which told the U.S. District Court for the District of Columbia that BIS was acting outside the authority of the Export Administration Regulations and was applying overly burdensome liability standards on carriers, said it still believes its arguments are valid. “FedEx respectfully disagrees with the court’s decision and is disappointed by this ruling,” the spokesperson said in a Sept. 11 statement, adding that the company is “considering our legal options, including appeal.”
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.