The recent $21 million U.S. government sanctions settlement with Fokker Services BV (“Fokker”), a Dutch aerospace services provider, signifies an increasing appetite on the part of U.S. regulators to go after non-U.S. companies dealing in sanctioned countries and raises questions concerning the government’s treatment of companies that come forward to voluntarily disclose sanctions violations. Following its submission of a voluntary self disclosure of potential sanctions violations, Fokker entered into a deferred prosecution agreement with the U.S. Department of Justice, in which it agreed to continue cooperating with the government and to forfeit $10.5 million in criminal penalties. In addition to the criminal penalties, the company also agreed to forfeit an additional $10.5 million civil penalty to settle related investigations by the U.S. Department of the Treasury, Office of Foreign Assets Control (“OFAC”), and the U.S. Department of Commerce, Bureau of Industry and Security (“BIS”).
Background and Relevant Facts of the Fokker Case -
Fokker has subsidiaries in The Netherlands, Singapore, and the United States. Since the company’s formation in 1996, its clients have reportedly included eleven Iranian customers, four Sudanese customers, and four Burmese customers. The federal government charged Fokker with conspiracy to unlawfully export U.S.-origin goods and services to all three sanctioned countries. For approximately eight years, Fokker allegedly sent shipments to U.S. repair shops knowing those shipments contained (1) parts and technology derived from aircraft controlled by Fokker customers located in U.S.-sanctioned countries or (2) U.S.-origin parts or technology that were subject to U.S. export licensing requirements under U.S. law at the time of shipment.
Please see full article below for more information.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.
Topics: Aerospace, Disclosure Requirements, DOJ, Exports, Fokker, Licensing Rules, Sanctions, Settlement
Published In: General Business Updates, Criminal Law Updates, Finance & Banking Updates, International Trade Updates
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
© Baker Botts | Attorney Advertising