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Probation for Unlawful Exports to Pakistan

Monday, September 24, 2018
Sandler, Travis & Rosenberg Trade Report

The Department of Justice reports that a Connecticut business owner has been sentenced to three years’ probation, the first six months of which must be served in home confinement, for violating U.S. export law.

A DOJ press release states that from at least 2012 to December 2016 this individual and two of his family members engaged in a scheme to purchase goods controlled under the Export Administration Regulations and export them to Pakistan without a license in violation of the EAR. Through several companies the three defendants received orders from a Pakistani company that procured materials and equipment for the Pakistani military asking them to procure specific products subject to the EAR. When U.S. manufacturers asked about the end-user for a product the defendants either replied that the product would remain in the U.S. or completed an end-user certification indicating that the product would not be exported.

After the products were purchased they were shipped by the manufacturer to the defendants in Connecticut and then shipped to Pakistan on behalf of the Pakistan Atomic Energy Commission, the Pakistan Space & Upper Atmosphere Research Commission, or the National Institute of Lasers & Optronics, all of which were on the Entity List. The defendants never obtained a license to export any item to these entities even though they knew a license was required. Furthermore, the defendants received the proceeds for the sale of these products through wire transactions to a U.S. bank account that they controlled.

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