Behrouz Mokhtari of McLean, Virginia, and Tehran pleaded guilty Jan. 9 to two conspiracies to violate U.S. sanctions on Iran "by engaging in business activities on behalf of Iranian entities" without getting a license from the Treasury Department's Office of Foreign Assets Control, DOJ announced Jan. 9. Mokhtari will forfeit money, property and assets obtained from the schemes, including a Campbell, California, home, and a money judgment of over $2.8 million, DOJ said. The defendant faces a maximum of five years in prison for each of the two conspiracy counts.
Electronics distribution company Broad Tech System and its president and owner, Tao Jiang of Riverside, California, pleaded guilty Jan. 11 to participating in a conspiracy to illegally ship chemicals made or distributed by a Rhode Island-based company to a Chinese firm with ties to the Chinese military, the U.S. Attorney's Office for the District of Rhode Island announced. Jiang and Broad Tech admitted to violating the Export Control Act and conspiring to commit money laundering.
The National Customs Brokers & Forwarders Association of America is asking members to comment on Red Sea shipping experiences ahead of a Federal Maritime Commission meeting on Feb. 7 (see 2401120057). A Jan. 17 email sent by the NCBFAA asked members to share their experiences in the Red Sea and how diversions due to Houthi missile attacks have affected maritime shipping in the region. The association said it plans to compile the responses into an "industry-specific impact statement" that it plans to present at the FMC meeting.
The oil shipping industry will soon be required to comply with new attestation and record-keeping rules as part of the global price cap on Russian oil, the Treasury Department said in an updated price cap guidance released Dec. 20. The agency also issued new sanctions against a Russian government-controlled ship manager and other traders who frequently transport Russian oil above the price cap.
National Customs Brokers & Forwarders Association of America President J.D. Gonzalez said representatives from the rail industry and ports, and Homeland Security officials, including Undersecretary Robert Silvers, had a good discussion on how to optimize supply chain flows, but he hopes the group will meet quarterly and delve "a little bit deeper into some of the processes" needed to make the advisory group effective.
New guidance from the Biden administration this week warned shippers, forwarders, brokers, ship owners and others involved in maritime and other transportation industries to better know their cargo, saying they each have a “responsibility” to craft their own “rigorous” compliance programs. The 10-page sanctions advisory specifically calls out freight forwarders, saying they play a “key role” in compliant supply chains.
The U.S. charged Belgian national Hans Maria De Geetere this week in two separate indictments for allegedly helping to illegally export "military-grade technology" from the U.S. to end-users in China and Russia, DOJ said. The agency said the business owner tried to procure more than $2 million worth of illegal exports from undercover government agents, and told one Commerce Department agent that a shipment was destined for Belgium when it was actually meant for Hong Kong.
Kuehne+Nagel will acquire the Canada-based customs broker Farrow, the Swiss logistics company said in a news release. “The acquisition of Farrow will be immediately earnings-accretive and will expand the company’s customs capabilities in a complementary way, especially at the Canadian and Mexican borders of the USA,” Kuehne+Nagel said. The deal's completion is expected in the first quarter of 2024, and is subject to “approval from regulatory authorities and customary closing conditions,” the release said. “Upon close, Farrow will become a fully owned subsidiary of Kuehne+Nagel.” Terms were not disclosed.
Two British reinsurance brokers, Tysers Insurance Brokers Limited and H.W. Wood Limited, settled DOJ investigations on the companies' violations of the Foreign Corrupt Practices Act, DOJ announced. The charges arose out of the parts played by Tysers and H.W. Wood in a scheme to bribe Ecuadorian government officials "to obtain and retain reinsurance business with" Ecuadorian state-owned firms.
The Senate voted 87-11 to approve a laddered temporary spending bill that will continue government appropriations at last fiscal year's level through Jan. 19 for some agencies and through Feb. 2 for others.