Kambiz Attar Kashani, a citizen of both the U.S. and Iran, has been charged with conspiring to illegally export U.S. goods, technology and services to the Iranian government, and others, in violation of the International Emergency Economic Powers Act, the U.S. Attorney's Office for the Eastern District of New York said. A complaint was unsealed in the district court revealing the nature of the charges against Kashani and the extent of his alleged malfeasance. According to the complaint, Kashani conspired to ship goods, including two subscriptions to proprietary computer software, multiple fixed attenuators, six power supplies and various storage systems, to the Central Bank of Iran -- an entity recognized by the Treasury Department as an agency of the Iranian government and thus classified as a Specially Designated National. The complaint said that CBI provided assistance to "Lebanese Hizballah, a terrorist organization, and to the Qods Force of Iran's Islamic Revolutionary Guards Corps." Kashani allegedly arranged for the transshipping schemes while acting as the principal for two United Arab Emirates front companies. The defendant used the companies to procure electronic goods and technology from various U.S. technology companies for the CBI without obtaining the proper Office of Foreign Asset Control licenses, the U.S. Attorney's Office said.
Charles Edwards, former acting inspector general for the Department of Homeland Security, Office of Inspector General, pleaded guilty Jan. 14 to his role in a scheme to steal "proprietary software and sensitive databases" from the federal government, the U.S. Attorney's Office for the District of Columbia said. Edwards worked for DHS-OIG from 2008 to 2013, where he had access to software systems for case management and for storing sensitive personal identification information of employees. Edwards left DHS and founded Delta Business Solutions. The government said that from at least 2015 to 2017, he stole software from DHS-OIG to use in developing commercial case management software that his company could then sell to government agencies, it said.
Peter Sotis and Emilie Voissem, two Florida residents, were sentenced Jan. 12 for conspiring to and illegally attempting to ship export-controlled rebreather diving equipment to Libya, the Department of Justice said. Sotis will spend 57 months in prison while Voissem will serve a five-month sentence in prison and a five-month term in home confinement. The scheme to illegally export the rebreather equipment -- an item that is export controlled due to its enhanced underwater breathing capabilities and dual use as a military and civilian item -- was hatched in August 2016.
The Federal Maritime Commission is adjusting its civil monetary penalties for inflation, the agency said in a notice released Jan. 13. The new amounts include higher maximum penalties for various violations of the Shipping Act and other shipping rules, including “adverse impact on U.S. carriers by foreign shipping practices.” The changes take effect Jan. 15.
The Bureau of Industry and Security this week revoked export privileges for four residents of Texas who illegally exported defense items or weapons ammunition to Mexico.
A European Union law holding that entities cannot comply with the requirements in the laws of a third country applies even in the absence of an order to comply with the third country's laws, the European Court of Justice said in a December 2021 judgment. However, an EU company can terminate contracts with a person or entity subject to U.S. sanctions without giving reasons for such termination or without authorization from the European Commission, a summary of the judgment said. But, the European high court said the burden of proof is on the party terminating the contract to show it nixed the contract for a reason other than compliance with the third country laws.
The State Department is adjusting its civil monetary penalties for inflation, the agency said in a notice released Jan. 7. The new amounts, which include higher maximum penalties for violations of the International Traffic in Arms Regulations and the Arms Export Control Act, will apply only to penalties assessed on or after Jan. 10, the agency said.
Xiang Haitao, a Chinese national, pleaded guilty Jan. 6 to conspiracy to steal a trade secret from international agricultural biotechnology company Monsanto to benefit the Chinese government, the Department of Justice said. Xiang worked at the company, now part of Bayer, and its subsidiary, The Climate Corporation, during 2008-2017 as an imaging scientist. Monsanto and The Climate Corporation developed a digital, online farming software platform used to collect and store field data and bolster productivity for farmers, DOJ said. The Nutrient Optimizer was a key piece of this technology and ended up being the target of Xiang's trade theft efforts.
Israel’s Justice Ministry charged Israeli drone maker Aeronautics and three senior employees with violating the country’s defense export control laws, according to a Dec. 30 report from Haaretz, an Israeli newspaper. An Israeli court placed a gag order on all details relating to the case, “presumably because the buyer is a country with whom Israel has sensitive relations or that exposure of details could harm Israeli drone sales,” The Jerusalem Postsaid in a Dec. 29 report. Haaretz said Aeronautics has been under investigation for several years for violating export laws.
Former U.S. Navy sailor Ye Sang "Ivy" Wang of San Diego was sentenced to 30 months in prison and fined $20,000 for conspiring with her husband, Shaohua "Eric" Wang, to illegally export military equipment to China, the U.S. Attorney's Office for the Southern District of California said. Ivy Wang bought military equipment for Naval Special Warfare units as part of her duties in her role as a logistics specialist first class assigned to the Naval Special Warfare Command in 2015-2019. In March 2018, Wang ordered a device for identifying U.S. military personnel in the field -- an item that was subject to Commerce Department export controls. Deployed in Iraq at the time the object arrived in San Diego, Wang told her command that the package containing the device was something she bought for her husband for a camping trip, the U.S. Attorney's Office said. Instead, she bought the device so her husband could resell it to China for a profit. In October 2018, Ivy Wang told agents interviewing her that her husband was illegally shipping military equipment to China. Even still, Ivy Wang took the device from her Navy command and gave it to her husband, the U.S. Attorney's Office said. Eric Wang pleaded guilty in 2019 to illegally selling export-controlled military equipment to China through his business and using his wife's Navy position to buy the equipment. Eric Wang also admitted to maintaining a warehouse in China to keep the equipment, the U.S. Attorney's Office said. “This defendant used her position of trust to put the Navy and the nation at risk, and the sentence imposed today holds her accountable for her actions,” acting U.S. Attorney Randy Grossman said.