The U.S. charged four Chinese nationals this week for their parts in a yearslong conspiracy to violate export controls by smuggling electronic parts through China and to Iran.
The Financial Crimes Enforcement Network adjusted its civil monetary penalties for inflation, the agency said in a notice this week. The new amounts include higher maximum penalties for various record-keeping and banking violations associated with funds transfers, which can sometimes violate U.S. sanctions. It also for the first time outlines adjusted penalty amounts for violations of the agency's new beneficial ownership information reporting requirements (see 2401050023). The changes take effect Jan. 25.
The Bureau of Industry and Security this week again renewed its temporary denial order for a Venezuela-based cargo airline after saying it continues to try to violate U.S. export restrictions in "continued disregard" for the terms of the TDO. BIS said Empresa de Transporte Aereocargo del Sur, also known as Aerocargo del Sur Transportation or Emtrasur, will continue to be subject to the denial order for 180 days from Jan. 21.
Jalal Hajavi of Virginia was sentenced to two years in prison and three years of supervised release after he illegally exported heavy equipment from the U.S. to Iran, DOJ announced this week. Hajavi also misled a U.S. freight forwarder about the “ultimate destination” of the shipment, DOJ said, which caused the forwarder to file false export information to the Commerce Department.
Ilya Kahn, a citizen of the U.S., Russia and Israel, was arrested on Jan. 17 for allegedly aiding a scheme to illicitly ship sensitive technology from the U.S. to a sanctioned Russian business, DOJ announced. Kahn was charged in the U.S. District Court for the Central District of California with conspiracy to violate the Export Control Reform Act.
Carlton Llewellyn, former senior executive at cargo airline Polar Air Cargo Worldwide, pleaded guilty on Jan. 16 to conspiracy to commit wire fraud as part of a scheme to defraud the airline, the U.S. Attorney's Office for the Southern District of New York announced. The count comes with a maximum five-year prison stint, and in addition, Llewellyn agreed to pay $347,879.44 in forfeiture and a restitution payment of $305,800 to Polar. Sentencing is scheduled for May 7.
The Office of Foreign Assets Control is adjusting its civil monetary penalties for inflation, the agency said in a notice this week. The new amounts include higher maximum penalties for violations of the Trading With the Enemy Act, the International Emergency Economic Powers Act, the Antiterrorism and Effective Death Penalty Act, the Foreign Narcotics Kingpin Designation Act and the Clean Diamond Trade Act. The agency also updated two references to “one-half the IEEPA maximum" penalty, which changed from $178,290 to $184,068. OFAC also adjusted the record-keeping penalty amounts in the agency's Economic Sanctions Enforcement Guidelines. The changes take effect Jan. 12.
Navy Petty Officer Wenheng Zhao was sentenced to 27 months in prison and ordered to pay a $5,500 fine for sending U.S. military information to a Chinese intelligence officer, DOJ announced. Zhao pleaded guilty in October to one count of conspiring with an intelligence officer and one count of receiving a bribe, DOJ said.
The Federal Maritime Commission is adjusting its civil monetary penalties for inflation, the agency said in a notice released this week. The changes, effective Jan. 15, increase maximum penalties for various violations of U.S. shipping regulations, including failing to establish "financial responsibility for nonperformance of transportation," illegal foreign shipping practices that have an “adverse impact” on U.S. carriers, “knowing and willful” violations of the Shipping Act, and operating in foreign commerce after a tariff suspension.
Three siblings recently pleaded guilty to trying to smuggle ammunition from the U.S. to Mexico, DOJ announced last week. The agency said Rolando, Ashley and Yamileth Herrera worked together to buy thousands of rounds of ammunition from a sporting goods store before trying to ship the ammo to people in Mexico. All three are U.S. citizens with residences in Mexico.