On July 1, 2011, the Bureau of Industry and Security (BIS) announced that Mohammed El-Gamal, also known as Moe Zayed El-Gamal (Gamal), President and CEO of Applied Technology, Inc. (ATI) of Kenansville, NC, has agreed to pay a civil penalty of $340,000 to settle allegations that he violated the Export Administration Regulations (EAR) by exporting controlled networking equipment to Libya without the required export licenses.
BIS alleged that on three occasions during June and July of 2006, Gamal sent networking equipment, controlled for Anti-Terrorism reasons, to the General Electric Company of Libya, without the required Department of Commerce licenses. In connection to one of these shipments, agents searched an ATI employee flying from Detroit, MI to Libya and found three computer cards hidden in his carry-on luggage.
To settle the administrative case, Gamal agreed to conduct a compliance audit of ATI covering the first year of exports following the settlement, put in place a compliance program, attend BIS export compliance training, and complete an audit for past exports.
On February 14, 2011, Gamal also pleaded guilty in the District Court for District of Columbia to one count of Material False Statements made to agents in the course of investigation. On May 16, 2011, he was sentenced by United States District Judge to pay a fine of $5,000, to perform 100 hours of community service, and to serve two years supervised probation. The judge also ordered Gamal to provide monthly reports to the Department of Commerce regarding his export activities during the probationary period.