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Former Export Compliance Officer Barred from Defense Trade for Export Violations

Tuesday, December 03, 2013
Sandler, Travis & Rosenberg Trade Report

The Department of State has administratively debarred a woman deemed to have violated Section 38 of the Arms Export Control Act and the International Traffic in Arms Regulations. The woman, a senior export compliance officer who had worked in export compliance at her company for 27 years, was charged with 21 violations in which she created export control documents purporting to be authorized by the State Department and presented those fabrications to her employer as valid authorizations. In this manner she caused her employer to rely on the falsified authorizations in the export of defense articles, including technical data, and the provision of defense services without the requisite authorizations.

As a result of this debarment, which will be effective through Nov. 25, 2016,  the woman is prohibited from participating directly or indirectly in any brokering activities and in any export from or temporary import into the U.S. of defense articles, related technical data or defense services in all situations covered by the ITAR. Further, persons with knowledge that this woman is ineligible must obtain authorization from the Directorate of Defense Trade Controls prior to, directly or indirectly and in any manner or capacity, applying for, obtaining or using any export control document for this woman or ordering, buying, receiving, using, selling, delivering, storing, disposing of, forwarding, transporting, financing or otherwise servicing or participating in any manner in any transaction that may involve any defense article, which includes technical data, defense services or brokering activities, where this woman may obtain any benefit therefrom or have any direct or indirect interest therein.

Exceptions to this denial policy may be made on a case-by-case basis at the DDTC’s discretion. However, such an exception would be granted only after a full review of all circumstances, paying particular attention to whether an exception is warranted by overriding U.S. foreign policy or national security interests, whether an exception would further law enforcement concerns that are consistent with U.S. foreign policy or national security interests, or whether other compelling circumstances exist that are consistent with U.S. foreign policy or national security interests and law enforcement concerns.

Reinstatement of the woman’s export privileges is not automatic and she must apply for reinstatement at the end of the debarment period. Until licensing privileges are reinstated she will remain debarred. No civil penalties have been imposed at this time.

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