The Pentagon defended its decision to designate Chinese lidar company Hesai Technology as a Chinese military company, filing a cross-motion for judgment in Hesai's case against its designation at the U.S. District Court for the District of Columbia (see 2412110023). DOD said substantial evidence backs its finding that Hesai is a "military-civil fusion contributor to the Chinese defense industrial base," arguing that Hesai failed to appreciate that the "combined weight" of all the evidence supports the designation (Hesai Technology Co. v. United States, D.D.C. # 24-01381).
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 $184,068 to $188,850. OFAC also adjusted the record-keeping penalty amounts in the agency's Economic Sanctions Enforcement Guidelines. The changes take effect Jan. 15.
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 “knowing and willful” violations of the Shipping Act.
An indictment was unsealed on Jan. 7 charging three Russian nationals for their role in a scheme to operate the "cryptocurrency mixing services" Blender.io and Sinbad.io, both of which have been sanctioned by the Office of Foreign Assets Control, DOJ announced.
DOJ successfully seized two luxury Miami condominiums with ties to Viktor Perevalov, a Russian national who was sanctioned in 2018 after his construction company helped build a highway in the Russia-occupied Crimea region, the agency announced Jan. 7. Perevalov allegedly used a Miami real estate agent to lease the properties, which DOJ said are worth a combined $1.8 million (see 2402230084).
Canadian national Nikolay Goltsev was sentenced to 40 months in prison for his role in a scheme to ship electronic parts to sanctioned Russian companies (see 2407100008), DOJ announced this week. Attorney General Merrick Garland said DOJ is “sparing no effort to ensure that those who violate America’s export controls to feed Russia’s war machine answer for their crimes in American courtrooms.”
The State Department is adjusting its civil monetary penalties for inflation, the agency said in a notice released Jan. 8 and effective Jan. 10. The new amounts, which include revised 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.
The Bureau of Industry and Security on Dec. 31 suspended the export privileges of four people after they were convicted of export-related offenses, including illegal shipments involving guns, ammunition and Iranian oil. The suspensions took effect from the date of their convictions.
Indium Corp., which the Bureau of Industry and Security earlier this week penalized for violating export controls against Russia (see 2412230052), has since “enhanced” its internal compliance program and improved its compliance training for employees, CEO Ross Berntson said in an emailed statement. Berntson also noted that Indium voluntarily disclosed the issue to BIS and “fully cooperated with the resulting investigation.”
David Rivera, a former Republican member of Congress from Florida, was charged this week with violating the Foreign Agents Registration Act after he allegedly failed to report receiving millions of dollars in exchange for lobbying the Trump administration to remove sanctions on a Venezuelan businessman.