U.S. Subsidiary of Japanese Telecommunications Company Fined $500,000 For Conspiring to Reexport Items Produced From U.S. Technology to Iran
Allied Telesis Labs, Inc., the Raleigh, North Carolina based U.S. subsidiary of Japan's Allied Telesis K.K., was recently sentenced by a judge in the U.S. District Court in the Eastern District of North Carolina to pay a $500,000 criminal fine and placed on probation for two years after pleading guilty in March to one count of conspiracy to export advanced telecommunication products produced from U.S.-origin technology from Singapore, through the United Arab Emirates, to Iran.
According to press reports, "Allied Telesis Labs is a research facility of Allied Telesis, which was founded in 1987 and based in Bothell, Washington." Allied Telesis ATL designs and develops various high-speed fiber-optic telecommunications devices and multi-service access platforms, known as iMAPs.
Employees at Allied Telesis were accused of conspiring to obtain and execute a $95 million contract with the Iranian Information Technology Company to rebuild and upgrade the telecommunications systems of approximately 20 Iranian cities, including Tehran. Preparation for the execution of the contract went as far as the manufacture of approximately $2 million worth of iMAPs at ATKK facilities in Singapore developed from U.S. origin technology. The high-speed telecommunication equipment was to be shipped from Singapore to Iran via the United Arab Emirates.
The contract negotiations apparently collapsed and the telecommunications system was never shipped to or installed in Iran.
A confidential informant helped break the case and that the employees involved in the conspiracy were fired.