Background

The Department of Justice reports that two international business organizations have each been sentenced to pay a fine of $83,769 for their participation in a criminal conspiracy to defraud the U.S. and violate the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations. Each will also serve a five-year term of corporate probation.

According to a DOJ press release, the two organizations were affiliated with one another by virtue of common directors, employees, and customers. They procured U.S. export-controlled goods, including a power amplifier designed for use in electromechanical devices as well as cybersecurity software, for the benefit of Iranian government entities and business organizations without the required license from the Office of Foreign Assets Control. They also took steps to conceal the U.S. origin of the goods, including by removing serial number stickers with the phrase “Made in USA” from packages and by causing the software to be downloaded onto a computer outside of Iran.

DOJ notes that the penalty amounts are three times the value of the goods illegally exported.

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