BIS Imposes Civil Penalties on Two Companies
The Bureau of Industry and Security (BIS) recently issued two press releases announcing the imposition of civil penalties for violations of the Export Administration Regulations (EAR).
In the first case, BIS announced that it had imposed a civil penalty of $220,000 on America, Inc., the U.S. subsidiary of Japan's YamadaYamada Corporation, for exporting diaphragm pumps to Taiwan, Singapore, Brazil and Ecuador without the required export licenses. BIS alleged that, between 2001 and 2005, Yamada committed a total of 26 violations of the EAR. Specifically, BIS found that Yamada committed 10 violations of exporting diaphragm pumps to the four countries, six violations of exporting the pumps with knowledge that violations would occur and 10 violations by making false statements on export control documents.
In the second case, BIS announced that LogicaCMG, Inc. agreed to pay a $99,000 civil penalty to settle nine charges that predecessor and affiliated entities CMG Telecommunications of Nashua, New Hampshire and CMG Wireless Data Solutions of Brazil violated the EAR in connection with unlicensed export of telecommunications equipment through Panama to Cuba.
BIS alleged that from July 2001 through October 2001 CMG Telecommunications and CMG Wireless Data Solutions conspired to export and did export a single node short message service center (SMSC) from the U.S. through Panama for ultimate delivery to an end-user in Cuba without the required export license. The equipment was controlled for national security, anti-terrorism and encryption item reasons. BIS further charged that CMG Telecommunications took actions to evade the provisions of the EAR by concealing the fact that Cuba was the country of ultimate destination and acted with knowledge of a violation when it transmitted technical data to Cuba by e-mail to assist in the installation of the SMSC without getting the required export license.As previously reported, LogicaCMG recently pled guilty in federal court for violating the International Emergency Economic Powers Act for the unlicensed export of the SMSC through Panama to Cuba and was ordered to pay a $50,000 criminal fine.
As of this writing, BIS has not yet released the charging letters and settlement agreements associated with these cases.