Fraud Conspiracy: Exports to Iran

5 individuals and their companies have been indicted as part of a conspiracy to defraud the United States that have been accused of causing thousands of radio frequency devices to be illegally exported from the U.S. to Iran. More than 15 were found in improvised explosive devices (IEDs) in Iraq. IED’s have been responsible for killing thousands in the war and leaving many more injured. The conspirators are also charged in a fraud conspiracy involving exportation of military antennas to Asia, specifically in Singapore & Hong Kong.

Authorities in Singapore arrested Wong Yuh Lan, Lim Kow Seng, Lim Yong Nam, and Hia Soo Gan Benson in connection with the United States’ request for extradition. The U.S. is seeking their trial in Washington D.C. The last defendant, Hossein Larijani, a citizen and resident of Iran, remains uncaptured and wanted for questioning. He is currently a denied trade party and restricted party.

Advertisements

Illegally Exporting Performance Coatings

The former Managing Director, Xun Wang, of PPG Paints Trading Company, Ltd., located in Shanghai, pleaded guilty to illegally exporting high performance coatings to a nuclear reactor facility located in Pakistan. The company is a Chinese subsidiary of the U.S. based PPG Industries.

Xun Wang pled guilty for violating the International Emergency Economic Powers Act; facing a max sentence of 5 years in prison and a fine not to exceed $250,000 USD. Xun Wang did agree to cooperate with law enforcement as part of her admission of guilt. In addition, Xun will be added to the Department of Commerce (DOC) Debarred (Denied) Party List for a period of 5 years.

Wang is charged with conspiring to export and then re-export epoxy coatings to Chashma #2 Nuclear Power Plant (Pakistan). The nuclear facility is on the U.S. DOC Watch List. In Nov. 1998 the Pakistan Atomic Energy Commission was added to the debarred list of United States trade parties following Pakistan’s successful ignition of a nuclear device.

PPG Industries (Shanghai) had initially applied for an export license to ship the performance coatings to Chashma#2 in Pakistan. The U.S. Department of Commerce rejected the application. Upon rejection, Wang had the coatings shipped from the United States using a third party. Eventually the shipment was found to be delivered to Chashma#2. Wang had concealed information, stating the coating paint was for a power plant in China.

Internet Filtering Equipment sent to Syria

The Bureau of Industry and Security (BIS) will be adding two new entities to the Department of Commerce (DOC), BIS Entity list for denied trade parties. Both parties are accused of buying internet filtering devices from the United States and sending the devices to Syria. According to evidence, Waseem Jawad ordered a number of internet filtering, proxy devices from an authorized distributer in the United Arab Emirates. Using his company, Infotec (Info Tech) in the U.A.E., he ordered the devices from the United States. Upon arrival, the proxy devices were transferred to the possession of Infotec. Approximately 3 days later, the filtering equipment was transported from the U.A.E. directly to Syria.

Due to the nature of internet filtering proxy servers being used as a tool to block the actions of pro-democracy activists by the Syrian Government, the Department of Commerce restricts and monitors exporting of these and related devices. They are classified as dual-use items by the BIS. Fines, sanctions, and criminal penalties can be forced on any entity found in violation.

Due to the evidence, both parties (Waseem Jawad and Infotec) are being added to the DOC, BIS Entity list (debarred party list). As new restricted trade parties, both are restricted from receiving any goods that are under U.S. sanction.

Export Administration Regulation Violations

Last week Federal Express has settled for an amount of $370,000 USD resulting from civil charges that the company violated United States’ Department of Commerce (DOC) Export Administration Regulations. The Bureau of Industry and Security charged FedEx with 3 sets of allegations:

  1. 06/2006 – Exportation of EAR controlled goods (electronic components) from the U.S. to ‘Mayrow’, located in the U.A.E., Dubai. ‘Mayrow’ is on the U.S. Restricted and Debarred Party / Denied Party list.
  2. 12/2005 – Exportation of aeronautic simulation software to Beihang University (Beijing, People’s Republic of China). The Beijing University of Aeronautics and Astronautics is listed as an identified denied trade party (restricted party) by the U.S. Department of Commerce.
  3. 2004 – Exporting controlled printer components to parties in Syria on 3 separate occasions in 2004. This is in violation of the current DOC Export Administration Regulations.

U.S. Companies Settle Antiboycott Charges

The United States Department of Commerce (DOC), Bureau of Industry and Security announced that three U.S. companies have agreed to pay $35,200 USD in penalties stemming from violations of current Export Administration Regulations.

  • Weiss-Rohlig (Cranford, NJ) has decided to pay a fine of $8,000 USD to settle 2 accusations that it violated antiboycott provisions of the Export Administration Regulations (EAR). The Bureau of Industry and Security (BIS) alleges that in 2006 in Weiss-Rohlig furnished illegal information regarding the blacklisted status of a cargo vessel. In addition, the company failed to disclose to the DOC a request to engage with a debarred trade practice or boycott.
  • JAS Forwarding, Inc. (Los Angeles, CA) has paid a fine of $19,200 USD to settle 3 allegations regarding EAR violations. The BIS alleges in 2006 JAS Forwarding furnished illegal information in statements claiming that certain goods were not of Israeli origin nor comprised of any Israeli materials.
  • Rexnord Industries (Milwaukee, WI) has arranged payment of an $ 8,000 USD fine stemming from 5 allegations regarding EAR violations. During the years 2007 through 2009, according to the BIS, Rexnord provided prohibited information in a declaration certifying that items were not of Israeli origin nor contained Israeli materials. On 4 separate occasions Rexnord failed to report to the Department of Commerce (DOC) the receipt of a request to engage in prohibited trade practice. Rexnord voluntarily disclosed the transactions to BIS.

2013 OCR User Conference

OCR held its 2013 User Conference on Wednesday, 13th November in the USA

This event, hosted by OCR, was for our current users who were able to hear from our industry experts on the latest software updates, future software plans, as well as insight on the new Export Control Reforms.

Topics Included:

  •  Latest Software Updates
  •  Export Control Reform Updates & Discussion
  •  2014 Software Release Plans
  •  New Functions and Features of Software
  •  Technical, Hands-on Workshop Sessions
  •  Hands on Help
  •  Breakout Sessions!
  •  Industry discussion groups