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Liar, liar, pants on fire – pay BIS $1.8MM, please!

FOR IMMEDIATE RELEASE

October 12, 2021

http://www.bis.doc.gov

BUREAU OF INDUSTRY AND SECURITY

Office of Congressional and Public Affairs

(202) 482-1069

BIS IMPOSES $1.8 MILLION PENALTY ON VTA TELECOM CORP. TO RESOLVE ALLEGATIONS OF MISREPRESENTATIONS MADE TO BIS, OTHER GOVERNMENT AGENCIES

WASHINGTON – Today, Kevin J. Kurland, Acting Assistant Secretary of Commerce for Export Enforcement, Bureau of Industry & Security (BIS), announced an administrative settlement with VTA Telecom Corporation (VTA), located in Milpitas, CA, which includes a civil penalty of $1,869,372. The settlement follows an investigation by the forward assigned post in Phoenix, Arizona, and the Los Angeles Field Office of BIS’s Office of Export Enforcement (OEE), involving egregious violations by VTA of the Export Administration Regulations (EAR). Among the provisions of the settlement, VTA agreed to a stated penalty of $1,869,372, of which $200,000 will be suspended for two years pending satisfaction of certain conditions, including specified compliance obligations.

“BIS will not tolerate exporters that provide false representations related to export regulations and laws. This enforcement action demonstrates the serious nature and consequences of such behavior and BIS’s continued commitment to safeguarding U.S. national security interests on behalf of the public we serve,” said Mr. Kurland.

This settlement resolves allegations that, between July 2015 and continuing through October 2016, VTA, on several occasions, provided false information to BIS officials and officials of other United States agencies in connection with export license applications and other export activities to conceal the defense purposes of some of its exports.

The issued Order, along with the related settlement agreement and proposed charging letter, is available here.

“This action is the result of outstanding collaborative investigative work by the Office of Export Enforcement and its law enforcement partners to combat the illegal shipment of sophisticated technology,” said Richard Weir, Special Agent in Charge of the BIS OEE Los Angeles Field Office. “Severe penalties await companies that lie about the end-use of the products they export overseas,” he added.

BIS’s mission is to advance U.S. national security and foreign policy objectives by ensuring an effective export control and treaty compliance system and promoting continued U.S. strategic technology leadership. Among its enforcement efforts, BIS is committed to preventing U.S.- origin items from supporting Weapons of Mass Destruction (WMD) projects, terrorist activities, or destabilizing military modernization programs. For more information, please visit http://www.bis.doc.gov.

Link:

BIS Notice

Categories: Bureau of Industry and Security (BIS) Updates Civil Monetary Penalties Enforcement Actions Export Administrastion Act/Regulations (EAA/EAR) Export Control

eric9to5

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