Valtex International Inc. and Owner Sentenced for Making Unlicensed Exports of Metallized Polymide Film to China

The Bureau of Industry and Security (BIS) announced on June 15, 2005 that Valtex International Incorporated (Valtex), an export management and manufacturer's representative firm based in Palo Alto, Calif., and its president and owner Vladimir Alexanyan, of Los Altos, California, were each sentenced in U.S. District Court for the District of Minnesota, on May 17, 2005, in connection with their guilty pleas to criminal charges concerning illegal exports of metallized polymide film to the People's Republic of China (PRC). Metallized polymide film is classified as ECCN 1A003.b and requires an export license to be exported to the PRC and certain other destinations.

Valtex was sentenced to five years probation and ordered to pay a $250,000 criminal fine. Alexanyan was sentenced to 3 years probation and a $12,000 criminal fine. In addition, Chief Judge James Rosenbaum ordered that Alexanyan be forbidden from engaging in any international business activities during his probationary period.

Separately, on January 12, 2005, BIS reached a settlement with Valtex and Alexanyan concerning related administrative violations of the Export Administration Regulations. Valtex agreed to pay an administrative penalty of $77,000 while Alexanyan agreed to an $88,000 administrative penalty. As part of the civil settlement, Valtex agreed to implement an export management system not later than December 29, 2005.