Department of Commerce Export Enforcement Cases

Closed October 1, 1997 to September 30, 1998

Order Sections

Date Cases Charges Violated Respondents Result

----- ----- ------- -------- ----------- ------

10/30/97

In the Matter of Ben H. Attia

Exported ballistic shields to Tunisia without obtaining the validated license he knew or had reason to know was required; made false and misleading statements of material fact on export control document

787.4(a) [1]

787.5(a) [1]

787.6 [1]

Ben H. Attia

Export privileges denied for 15 years

10/31/97

In the Matter of Thane-Coat, Inc., Jerry Vernon Ford, Preston John Engebretson, Export Materials, Inc. and Thane-Coat International, Ltd.

Reason to believe that the respondents employed a scheme to export U.S.-origin products from the United States, through the United Kingdom or Italy, to Libya, a country subject to a comprehensive economic sanctions program, without the authorization required

EAA

EAR

Thane-Coat, Inc., Jerry Vernon Ford, Preston John Engebretson, Export Materials, Inc. and Thane-Coat International, Ltd.

Order temporarily denying export privileges was renewed for 180 days

11/03/97

In the Matter of William F. McNeil

Knowingly and willfully exported and caused to exported U.S.-origin electronic riot shields to Romania without applying for and obtaining the required authorization from the Commerce Department

Sections 1701 and 1705 of IEEPA

William F. McNeil

Export privileges denied until August 8, 2001

01/09/98

In the Matter of Nishan Keval

Knowingly and willfully exported and caused to be exported from the U.S. to The Netherlands, for transshipment to the People's Republic of Libya, petrochemical-related equipment

Sections 1702 and 1705 of the IEEPA

Nishan Keval

Export privileges denied until September 25, 2003

01/13/98

In the Matter of PTC Aerospace, a division of BE Aerospace, Inc.

Exported U.S.-origin aircraft parts, including aircraft seat sets, to France for installation on Iran Air aircraft without the validated export licenses that PTC Aerospace knew or had reason to know were required

787.4(a) [25]

787.6 [25]

PTC Aerospace, a division of BE Aerospace, Inc.

Settlement agreement - civil penalty of $500,000; export privileges denied for three years, all of which is suspended

01/26/98

In the Matter of Allergan, Inc.

Exported U.S.-origin botulinum toxin pharmaceutical product to various countries without the required validated licenses

787.6 [412]

Allergan, Inc.

Settlement agreement - civil penalty of $824,000

02/02/98

In the Matter of Coherent, Inc.

Exported to the Department of Atomic Energy, in India, U.S.-origin plasma tubes for use in argon ion lasers without the required validated export licenses

787.6 [2]

Coherent, Inc.

Settlement agreement - civil penalty of $20,000

02/09/98

In the Matter of NF&M International, Inc.

Exported titanium alloy products to Australia, Austria, England, Germany and Israel without obtaining the required validated export licenses

787.6 [33]

NF&M International, Inc.

Settlement agreement - civil penalty of $82,500; $42,500 suspended for one year

02/19/98

In the Matter of Helco Company, Inc.

Conspiracy; sold U.S.-origin equipment and spare parts to Doornbos, GmbH knowing that they would be reexported from Germany to Libya for use in the Great Man-Made River Project without applying for or obtaining the reexport authorizations Helco knew or had reason to know were required

787.3(b) [1]

787.2 [8]

Helco Company, Inc.

Settlement agreement - civil penalty of $90,000, $40,000 suspended for two years; export privileges denied for two years, all of which is suspended

02/20/98

In the Matter of Essam Alkadi, also know as Essam Al-Kadi

Attempted to export a U.S.- origin shotgun to Saudi Arabia without obtaining the required validated export license

787.3(b) [1]

Essam Alkadi, also known as Essam Al- Kadi

Export privileges denied for three years

02/26/98

In the Matter of LEP Profit International, Inc.

Made false and misleading statements of material fact on export control documents

787.5(a)(1)

[12]

LEP Profit International, Inc.

Settlement agreement - civil penalty of $60,000, $15,000 suspended for two years

02/26/98

In the Matter of Republic Cargo Systems, successor to certain of the business of H&M International Air Freight Corp.

Exported marine diesel engine parts to Vietnam without obtaining the required validated export license

787.6 [1]

Republic Cargo Systems, successor to certain of the business of H&M International Air Freight Corp.

Settlement agreement - civil penalty of $10,000

03/02/98

In the Matter of C.H. Powell Company

Made false and misleading statements of material fact on export control documents

787.5(a)(1)[4]

C.H. Powell Company

Settlement agreement - civil penalty of $20,000

03/02/98

In the Matter of C.H. Powell Company

Forwarded U.S.-origin sodium cyanide to the Dominican Republic with knowledge or reason to know that a violation of the Act or any regulation, order, or license issued thereunder occurred, was about to occur, or was intended to occur

787.4(a) [1]

C.H. Powell Company

Settlement agreement - civil penalty of $10,000

03/02/98

In the Matter of Realtek Semi-Conductor Co. Ltd.

Realtek, a person denied all export privileges, violated the terms of the denial order issued against it by ordering items to be exported from the U.S. with knowledge that a violation of the Act, the Regulations, or any order, license or authorization issued thereunder occurred, was about to occur, or was intended to occur

764.2(k) [1]

764.2(e) [1]

Realtek Semi- Conductor Co. Ltd.

Settlement agreement - civil penalty of $20,000; export privileges denied for a period of one year from August 3, 2000 [the date the original order expires], all of which is suspended

03/19/98

In the Matter of New World Transtechnology

Knowingly and willfully attempted to export, and caused to be exported, computers to the People's Republic of China without the required validated export license and knowingly and willfully attempted to export and attempted to cause to be exported, from the U.S. to the Commonwealth of Hong Kong, for transshipment to the People's Republic of China, a computer without the required validated export license or other authorization

Sections 1702 and 1705(b) of the IEEPA

New World Transtechnology

Export privileges denied until December 20, 2006

03/23/98

In the Matter of Suburban Guns (Pty) Ltd.

Knowingly and willfully caused to be exported to South Africa numerous firearms designated on the Commerce Control List without obtaining the required validated export licenses

Section 2410(b)(1)(A) of the EAA and Section 1705(b) of the IEEPA

Suburban Guns (Pty) Ltd.

Export privileges denied until July 25, 2007

04/06/98

In the Matter of Penny Ray, also known as Lei Ping

Knowingly and willfully exported and attempted to export defense articles to the People's Republic of China without obtaining the required export license from the Department of State

Section 38 of the AECA

Penny Ray, also know as Lei Ping

Export privileges denied until January 14, 2008

04/06/98

In the Matter of James Lee, also known as Li Jin

Knowingly and willfully exported and attempted to export defense articles to the People's Republic of China without obtaining the required export license from the Department of State

Section 38 of the AECA

James Lee, also known as Li Jin

Export privileges denied until January 14, 2008

04/29/98

In the Matter of Export Materials, Inc. and Thane-Coat International, Ltd.

Reason to believe that the respondents employed a scheme to export U.S.-origin products from the United States, through the United Kingdom or Italy, to Libya, a country subject to a comprehensive economic sanctions program, without the authorization required

EAA

EAR

Export Materials, Inc. and Thane-Coat International, Ltd.

Order temporarily denying export privileges was renewed for 180 days

04/29/98

In the Matter of Thane-Coat, Inc., Jerry Vernon Ford and Preston John Engebretson

Reason to believe that the respondents employed a scheme to export U.S.-origin products from the United States, through the United Kingdom or Italy, to Libya, a country subject to a comprehensive economic sanctions program, without the authorization required

EAA

EAR

Thane-Coat, Inc., Jerry Vernon Ford and Preston John Engebretson

Order temporarily denying export privileges was renewed for 180 days, but was limited to the United Kingdom, the Bahamas, Libya, Cuba, Iraq, North Korea, Iran, and any other country or countries that may be made subject in the future to a general trade embargo, and provides that, at least 14 days in advance of any export that any of the denied persons intends to make of any item to any destination world-wide, the denied person will provide to BXA notice of the intended export, copies of all documents reasonably related to the subject transaction and the opportunity during the 14-day notice period to inspect physically the item at issue

05/05/98

In the Matter of David Irwin Portnoy

Knowingly and willfully exported and caused to be exported from the United States to Switzerland, for transshipment to Libya, electronic components and telecommunication equipment

Sections 1702 and 1705 of the IEEPA

David Irwin Portnoy

Export privileges denied until August 1, 2007

05/05/98

In the Matter of Wayne P. Smith

Knowingly and willfully exported and caused to be exported to England 80 plain self-aligning ball bearings designed for and used on the McDonnell Douglas F-4 Phantom II military jet, without obtaining the required export license from the Department of State

Section 38 of the AECA

Wayne P. Smith

Export privileges denied until July 3, 2006

05/11/98

In the Matter of Sanford B. Groetzinger

Knowingly and willfully exported and attempted to export defense articles to France, for transshipment to Iran, without obtaining the required export licenses from the Department of State

Section 38 of the AECA

Sanford B. Groetzinger

Export privileges denied until September 26, 2005

05/11/98

In the Matter of Summit Marketing, Inc.

Knowingly and willfully exported and attempted to export defense articles to France, for transshipment to Iran, without obtaining the required export licenses from the Department of State

Section 38 of the AECA

Summit Marketing, Inc.

Export privileges denied until September 26, 2005

05/12/98

In the Matter of Marc Andre Leveille

Directly and indirectly falsified or concealed a material fact

787.5(a)(1)(I) [1]

Marc Andre Leveille

Settlement agreement - civil penalty of $10,000

05/15/98

In the Matter of Republic- Lagun Machine Tool Company

Exported a Lagunmatic VMC- 1200 machining center with a Fanuc 11M CNC controller to the People's Republic of China without obtaining the validated license that Republic-Lagun knew or had reason to know was required

787.4(a) [1]

787.6 [1]

Republic-Lagun Machine Tool Company

Settlement agreement - civil penalty of $20,000

06/05/98

In the Matter of Hitachi Data Systems Corporation

Exported computer equipment to South Africa without obtaining the required validated export license and made false and misleading statement of material fact on export control document

787.5(a) [1]

787.6 [1]

Hitachi Data Systems Corporation

Settlement agreement - civil penalty of $6,000

06/19/98

In the Matter of Gateway 2000, Inc.

Exported U.S.-origin computer equipment to various countries without applying for and obtaining the validated licenses that Gateway knew or had reason to know were required; made false and misleading representations of material fact to a U.S. government agency directly or indirectly in connection with the preparation or use of an export control document

787.4(a) [30]

787.5(a) [27]

787.6 [30]

Gateway 2000, Inc.

Settlement agreement - civil penalty of $402,000

06/30/98

In the Matter of EVI, Inc.

Exported oil field equipment to Iran without obtaining the required validated export license; made false and misleading misrepresentation, statement, or certification of a material fact directly or indirectly to a U.S. government agency in connection with the preparation, submission, issuance, use or maintenance of export control documents

787.5(a)(1)[2]

787.6 [2]

EVI, Inc.

Settlement agreement - civil penalty of $40,000, $10,000 suspended for one year

07/31/98

In the Matter of IBM East Europe/Asia, Ltd.

Sold computers to the Russian company, Ofort, and arranged for their export from Germany to Ofort's shipping agent in The Netherlands, who then reexported the computers to Arzamas-16 in Russia without any party having applied for or obtained the required license

764.2(a) [17]

IBM East Europe/Asia, Ltd.

Settlement agreement - civil penalty of $171,000; export privileges denied for two years, all suspended; agreement by IBM East Europe/Asia to refrain from dealing with any military or nuclear end user for two years and to the suspension of its authority to use License Exception CTP for two years

08/03/98

In the Matter of Elham Abrishami

Knowingly and willfully exported and caused to be exported radio communication equipment to the United Arab Emirates, for transshipment to Iran, without first having obtained authorization from the Department of Commerce; knowingly and willfully attempted to export encryption modules from the Unted Arab Emirates, for transshipment to Iran, without first having obtained an export license or written authorization from the State Department

Section 2410(b) of the EAA and Section 38 of the AECA

Elham Abrishami

Export privileges denied until August 20, 2007

08/03/98

In the Matter of Jack Allen Baugher

Knowingly and willfully exported and caused to be exported electronic stun guns to Mexico and the Philippines, without obtaining the required export licenses from the Department of Commerce; knowingly and willfully exported and caused to be exported liquid pepper to Mexico and the Philippines, without obtaining the required written authorization from the State Department

Section 1701 of the IEEPA and Section 38 of the AECA

Jack Allen Baugher

Export privileges denied until December 19, 2005

08/18/98

In the Matter of Robert E. Mahler

Willfully and knowingly exported and attempted to export a defense article, specifically a 40-foot container containing handguns, rifles and ammunition, to the Republic of South Africa without having first obtained the required export license from the State Department

Section 38 of the AECA

Robert Mahler

Export privileges denied until June 12, 2001

08/20/98

In the Matter of N.V. Advanced Technology Company

Reexported U.S.-origin electronic equipment from Belgium to Russia without obtaining the required reexport authorizations

787.6 [2]

N.V. Advanced Technology Company

Settlement agreement - civil penalty of $10,000

09/03/98

In the Matter of Chemicals Export Company

Exported sodium cyanide to Peru, Venezuela and Guatemala without obtaining the required validated export licenses

787.6 [4]

Chemicals Export Company

Settlement agreement - civil penalty of $16,000

09/03/98

In the Matter of Southern Information Systems

Exported foreign-made digital microwave systems that incorporated U.S.-origin parts, components or materials in excess of 25% of the value of each system from Taiwan to Vietnam without obtaining the required written authorizations

787.6 [5]

Southern Information Systems

Settlement agreement - civil penalty of $25,000

09/03/98

In the Matter of Syntex, S.A. de C.V.

Caused, aided and abetted the export by its agent of U.S.- origin hydrogen fluoride to Mexico without obtaining the required validated licenses

787.2 [13]

Syntex, S.A. de C.V.

Settlement agreement - civil penalty of $65,000, $32,500 suspended for one year

09/03/98

In the Matter of Villasana & Company, Inc.

Made false or misleading statements of material fact, directly or indirectly to a United States government agency in connection with the preparation or use of an export control document

787.5(a)(1)[1]

Villasana & Company, Inc.

Settlement agreement - civil penalty of $2,500, all of which is suspended; export privileges denied for two years, all of which is suspended

09/03/98

In the Matter of Mario Palmeros, d/b/a Palmeros Forwarding

Made false or misleading statements of material fact, directly or indirectly to a United States government agency in connection with the preparation or use of an export control document

787.5(a)1)[10]

Mario Palmeros, d/b/a Palmeros Forwarding

Settlement agreement - civil penalty of $50,000, all of which is suspended; export privileges denied for two years, all of which is suspended

09/04/98

In the Matter of Herb Kimiatek, idba Kimson Chemical, Inc.

Exported sodium cyanide to the Dominican Republic without obtaining the license he knew or had reason to know was required

787.4(a) [1]

787.6 [1]

Herb Kimiatek, idba Kimson Chemical, Inc.

Settlement agreement - civil penalty of $20,000

09/16/98

In the Matter of Robert J. Gaudu

Conspiracy; possessed U.S.- origin commodities with the intent to export them with knowledge or having reason to know that a violation of the Act or the Regulations was intended to occur; made false or misleading statements of material fact directly or indirectly to a United States government agency in the course of an investigation

787.3(b) [1]

787.4(a) [1]

787.4(b) [1]

787.5(a)(1)[1]

Robert J. Gaudu

Settlement agreement - civil penalty of $25,000; export privileges denied for three years, all of which is suspended

09/30/98

In the Matter of Paul Dufault

Conspiracy; possessed U.S.- origin commodities with the intent to export them with knowledge or having reason to know that a violation of the Act or the Regulations was intended to occur; made false or misleading statements of material fact directly or indirectly to a United States government agency in the course of an investigation

787.3(b) [1]

787.4(a) [1]

787.4(b) [1]

787.5(a)(1)[1]

Paul Dufault

Settlement agreement - civil penalty of $25,000; export privileges denied for three years, all of which is suspended

09/30/98

In the Matter of Ed Jentz

Conspiracy; possessed U.S.- origin commodities with the intent to export them with knowledge or having reason to know that a violation of the Act or the Regulations was intended to occur; made false or misleading statements of material fact directly or indirectly to a United States government agency in the course of an investigation

787.3(b) [1]

787.4(a) [1]

787.4(b) [1]

787.5(a)(1)[1]

Ed Jentz

Settlement agreement - civil penalty of $25,000; export privileges denied for three years, all of which is suspended