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$200,000 Civil Penalty, Possible Criminal Fine for Illegal Exports to Pakistan

Thursday, November 17, 2011
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security reported Nov. 15 that the former managing director of a Chinese subsidiary of a U.S.-based company will pay a $200,000 civil penalty to settle an administrative proceeding concerning her role in the illegal exportation of high-performance coatings for use in a Pakistani nuclear reactor. In addition, she will be placed on the Denied Persons List for five years (with an additional five years suspended), which will prohibit her from directly or indirectly participating in any transaction involving a commodity, software or technology subject to the Export Administration Regulations that is exported or to be exported from the U.S. The woman also pleaded guilty to criminal charges associated with this violation and faces a maximum sentence of five years in prison and a criminal fine of up to $250,000.

Earlier in this case the subsidiary and its U.S. parent paid a total of $3.75 million in criminal and administrative fines and more than $32,000 in restitution, one of the largest monetary penalties for export violations in BIS history.

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