A Russian citizen who has resided in Hong Kong, was charged in connection with conspiring to defraud the United States and with smuggling, wire fraud, and money laundering offenses based on his alleged participation in a scheme to unlawfully procure U.S.-sourced, dual-use microelectronics with military applications on behalf of end users in Russia. According to the complaint, Maxim Marchenko, 51, employed a web of shell companies as part of an overseas smuggling ring to ship dual-use U.S. technology with military applications to Russia in contravention of U.S. law. …

On September 18, U.S. Customs and Border Protection (CBP) updated the Withhold Release Order (WRO) issued against Supermax Corporation Bhd. and its subsidiaries following the remediation of forced …

Denial of Export Privileges: Firearms to Mexico & Ecuador; Rebreathers to Libya

One of the two Florida men arrested this Spring in a scheme to launder funds for the fugitive "Gas King of Ukraine," through a Florida metals service center has entered a guilty plea. Sergey Karpushkin, a Belarusian citizen from Miami, was indicted and arrested for engaging in a $150 million scheme to violate U.S. sanctions against Russian oligarch Sergey Kurchenko and his two companies. Karpushkins plea acknowledged violation of the International Emergency Economic Powers Act ("IEEPA"), 50 U.S.C. § 1705; and other money laundering charges.

Bureau of Industry and Security (BIS) imposed a civil penalty of $48,750 against Pratt & Whitney's aftermarket parts division to resolve 13 violations of the antiboycott provisions of the Export Administration Regulations (EAR) (antiboycott regulations) PWCS voluntarily disclosed the conduct to BIS, cooperated with the investigation by BIS’s Office of Antiboycott Compliance (OAC), and took remedial measures after discovering the conduct at issue, all of which resulted in a significant reduction in penalty.

A federal grand jury in the District of Connecticut returned a superseding indictment charging a Connecticut-based oil and gas trader for his role in an alleged scheme to pay bribes to Brazilian officials to win contracts with Brazil’s state-owned and state-controlled energy company, Petróleo Brasileiro S.A. – Petrobras (Petrobras).   The original charges against Glenn Oztemel and Innecco were unsealed on Feb. 15. In addition to the original charges against Glenn Oztemel and Innecco, the superseding indictment charges Gary Oztemel with conspiracy to violate the Foreign Corrupt Practices Act (FCPA), conspiracy to commit money laundering, and two counts of money laundering.

Commerce's Bureau of Industry and Security (BIS) issued a Temporary Denial Order (TDO) against three individuals and four companies implicated in illicitly supplying the Russian military with U.S.-sourced micro-electronics having significant military applications.

Under the Dodd-Frank Act, a whistleblower who exposes fraud can receive a monetary award and anti-retaliation protections through the U.S. Securities and Exchange Commission (SEC) Whistleblower Program - as long as they blow the whistle voluntarily. A definition of “voluntary” may seem simple enough. However, some Dodd-Frank whistleblowers who, acting of their own free will and without legal obligation, report fraud are considered “involuntary” simply because they reported to the media, other government agencies, foreign law enforcement, or a U.S. embassy.

Under the newly adopted § 766.24(d)(1), BIS is now permitted to request the Assistant Secretary for Export Enforcement to extend an existing TDO for up to one year, a substantial extension from the previous 180-day limit. This enhanced provision is triggered in cases where a subject party has exhibited a pattern of repeated and ongoing violations of the EAR, thereby justifying the need for a more protracted control mechanism.

The Securities and Exchange Commission has accepted an Offer of Settlement from Minnesota's 3M Company, closing its investigation into violations of the Foreign Corrupt Practices Act by 3M's …

BIS Announced three Orders Denying Export Privileges Friday, two for gunrunning to Mexico and Canada, and one for the export of an "eyepiece" to China.

Treasury’s Office of Foreign Assets Control (OFAC) today announced a $660,594 settlement with Construction Specialties Inc, a Lebanon, New Jersey manufacturer and distributor of specialty architectural products.  CS has agreed to settle its potential civil liability for three apparent violations of OFAC sanctions on Iran that arose from its United Arab Emirates subsidiary’s, Construction Specialties, Middle East L.L.C. (“CSME”), exportation of U.S. origin goods to Iran.  

On August 16, 2023 the Bureau of Industry and Security (BIS) published orders denying export privileges to the following four individuals:

Departing Assistant Attorney General for the Criminal Division Kenneth Polite told Reuters the department’s enforcement pipeline has several more “global resolutions,” or large corporate settlements pending in coming months. Mr. Polite, who will be joining Sidley Austin in October after overseeing corporate resolutions such as Glencore, ABB, Danske, and Stericycle attributed the backlog to COVID related- delays.  Polite said to expect "much larger schemes and activities."

In remarks last week in Lexington, Kentucky,  Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson spoke to common concerns about the implementation of the Corporate Transparency Act (CTA) which requires certain U.S. and foreign companies to report to FinCEN information about their beneficial owners: "FinCEN is working around the clock to stand up this program in a way that allows you to understand your obligations, provides you the resources to meet them, and ensures the smallest possible burden on you.

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has designated Riad Salameh, the former governor of Lebanon's central bank, and four of his close associates for corrupt and unlawful activities. Salameh allegedly used his position to funnel hundreds of millions of dollars through shell companies for personal enrichment, investing in European real estate. The sanctions do not extend to the Banque du Liban (BdL) or its U.S. correspondent bank relationships.

Bureau of Industry and Security (BIS) is adding four Cyber surveillance entities to the Entity List under the destinations of Greece, Hungary, Ireland, and North Macedonia. The ERC determined to add the firms to the Entity List for "trafficking in cyber exploits used to gain access to information systems, thereby threatening the privacy and security of individuals and organizations worldwide."

A Russian citizen alleged to have ties with Russia's Federal Security Service (FSB) will face charges in a U.S. court today. The charges relate to conspiracy, money laundering, and participating in a …

The Bureau of Industry and Security (BIS), declared the enforcement of financial penalties against two defense companies,  resolving alleged infractions of the antiboycott regulations of the …

A Washington State man recieved suspended punishment for export violations committed five years ago.  Jaeyoun Jung, of Puyallup faces a a two-year denial of his export privileges, suspended for a two-year probationary period, then waived, provided that Jung has not committed another violation, and has completed an export controls compliance training.