State Department Increases Penalties for Arms Export Control Act Violations
Marcie Schwartz and Clint Long
On June 7, the U.S. Department of State announced the implementation of “catch-up” adjustments to the maximum civil monetary penalties (CMPs) it assesses to account for inflation per the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. Included in the adjustments are new increased maximum CMP amounts for violating the Arms Export Control Act (AECA). A single violation of the AECA can now potentially cost up to $795,445, $946,805, or $1,094,010, depending on the section of the AECA that is violated. The agencies, however, continue to have the discretion to impose less than the maximum CMP. According to the final rule published in the Federal Register on June 8, “the new penalty levels will apply to all assessments made on or after August 1, 2016, regardless of the date on which the underlying facts or violations occurred.” Subsequent inflationary adjustments will now occur annually.
Two New Judges Confirmed at the U.S. Court of International Trade
Quinn Bailey and Lee Smith
The Senate confirmed two new judges for the U.S. Court of International Trade this month – Jennifer Choe Groves and Gary Stephen Katzmann. Groves is presently CEO of Titanium Law Group and Choe Groves Consulting. Previously, Groves was a partner at Hughes Hubbard & Reed LLP and then at Eckert Seamans Cherin & Mellott, LLC. Before her private practice, Groves served as the Senior Director of Intellectual Property and Innovation in the Office of the United States Trade Representative (USTR). Katzmann is an associate justice on the Massachusetts Appeals Court since 2004. Previously, he served in the United States Attorney’s Office where he was detailed to the Office of the Deputy Attorney General, and subsequently, to the Federal Bureau of Investigation.
