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57 Month Prison Sentence for Conspiring to Export Specialty Metals to Iran

Friday, September 15, 2017
Sandler, Travis & Rosenberg Trade Report

The Department of Justice reports that the CEO of a U.S. company has been sentenced to 57 months in prison after pleading guilty to conspiracy to export specialized U.S. technology to Iran. A DOJ official said the product at issue was more than 1,000 pounds of a metallic powder primarily composed of cobalt and nickel that has nuclear and missile applications. Such specialized metals are regulated to combat nuclear proliferation and terrorism, a DOJ press release states, and exporting them without the required license from the Treasury Department’s Office of Foreign Assets Control is illegal.

DOJ states that to hide the true destination of the goods from the supplier the CEO arranged for them to be shipped first to Turkey and then to Iran. He also used coded language when discussing shipment with a Turkey-based co-conspirator. DOJ adds that the Iranian steel company to which the powder was shipped had the same address as an Iranian entity designated by OFAC under the weapons of mass destruction proliferators sanctions program.

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