Two Iranian men were charged in a conspiracy to illegally export computer servers to Iran, the Justice Department said Sept. 28. Ebrahim Azadegan and Alireza Alvandi were charged with violating the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations when they allegedly tried to ship the servers without licenses. The servers are classified as dual-use goods under the Commerce Control List and are export controlled for anti-terrorism and national security reasons.
The United States District Court for the District of Columbia temporarily blocked the Commerce Department from implementing restrictions on TikTok (see 2009180026), according to court records filed Sept. 27. The Commerce Department said it will fight the injunction and said President Donald Trump’s August executive order (see 2008070024) was “fully consistent with the law” and addressed “legitimate” national security concerns. “The Government will comply with the injunction and has taken immediate steps to do so, but intends to vigorously defend the E.O. and the Secretary’s implementation efforts from legal challenges,” Commerce said. The court’s injunction came about one week after another court temporarily blocked Commerce from imposing similar restrictions on WeChat (see 2009210008).
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 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 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.