OFAC Posts Recent Penalty Information

In October, Office of Foreign Assets Control (OFAC) posted on its web site information on recent OFAC enforcement actions: 

On October 14, 2011, Sunrise Technologies and Trading Corporation of Flushing, NY, and its principal owner (Sunrise) have agreed to settle administrative charges made by the OFAC arising from violations of the Iranian Transactions Regulations (ITR), which are administered by OFAC.  OFAC alleged that between 2007 and 2011, Sunrise exported computer-related goods indirectly from the United States through Dubai, United Arab Emirates, to Iran without the required export licenses.  OFAC initiated the inquiry into these matters and referred the case to criminal law enforcement authorities for further investigation.  Sunrise and OFAC agreed to a settlement in the amount of $1,661,672 with respect to apparent violations of the ITR by Sunrise.  

This settlement with OFAC is related to criminal plea agreements reached by Sunrise and the Office of the United States Attorney for the District of Columbia, as well as settlement agreements between Sunrise and the U.S. Department of Commerce's Bureau of Industry and Security (BIS).  OFAC's settlement with Sunrise has been deemed satisfied by their acceptance of criminal responsibility, the criminal forfeiture of assets, and the restrictions imposed by BIS against Sunrise and its principal owner. 

Sunrise and its principal owner each pleaded guilty in the U.S. District Court for the District of Columbia to one count of criminal conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and the ITR after an indictment arising from the same conduct was filed by the U.S. Department of Justice.  In addition to the forfeiture of a money judgment in the amount of $1,250,000, Sunrise also accepted BIS Export Denial Orders which prohibit them from exporting any goods from the United States for a ten-year period.  The BIS Export Denial Orders were suspended in their entirety provided Sunrise remains in compliance with the terms of their Settlement Agreements with BIS. 

For the violations that OFAC considered to be an egregious case, Sunrise did not voluntary disclose these matters to OFAC. 

On October 27, 2011, Zurigo Trading, Inc. (Zurigo) of Weston, FL, was  assessed a penalty of $7,000 for violating the Iranian Transactions Regulations (ITR).  Specifically, in September 2006, Zurigo attempted to export goods valued at $7,168 to Iran on behalf of its foreign customer.  OFAC determined that Zurigo did not voluntarily self-disclose the violation to OFAC and that the violation constituted a non-egregious case.  The base penalty amount for the violation was $10,000.  The assessed penalty amount reflects OFAC's consideration of the fact that Zurigo had knowledge or reason to know that the goods were destined for Iran; Zurigo did not have an OFAC compliance program in place at the time of the violation; Zurigo has not been the subject of an OFAC enforcement action in the five years preceding the transaction at issue; and, some of the goods Zurigo attempted to ship appear to have been eligible for an OFAC license had an application been submitted to OFAC.