WASHINGTON – Tech behemoth ZTE Corporation has caved to the pressure and agreed to a guilty plea, shelling out a staggering $430,488,798 for conspiring to violate U.S. sanctions by clandestinely shipping American-origin goods to Iran.
In addition to the monetary penalty, ZTE will fork over a further $892,360,064 to settle with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and the Office of Foreign Assets Control (OFAC), bringing its total payout to over $1.3 billion.
The plea deal is part of a broader scheme in which ZTE not only violated export controls but also deceived federal investigators, their own legal team, and internal auditors, according to the Department of Justice (DOJ). The company’s highest-ranking officials were implicated in approving the illicit shipments.
Attorney General Jeff Sessions underscored the severity of ZTE’s actions, stating that they not only violated export controls but also obstructed justice and endangered national security. “This plea agreement holds them accountable, making clear that our government will use every tool we have to punish companies who would violate our laws,” said Sessions.
Acting Assistant Attorney General Mary B. McCord highlighted the importance of enforcing U.S. export control and sanctions laws for protecting national security. “Companies that violate these laws – including foreign companies – will be investigated and held to answer for their actions,” she emphasized.
ZTE’s illegal activities did not stop at shipping goods to Iran; once they were caught, the company resumed sending shipments during the investigation period. U.S. Attorney John R. Parker commented on this brazen behavior: “ZTE Corporation then went to great lengths to devise elaborate, corporate-wide schemes to hide its illegal conduct, including lying to its own lawyers.”
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: White Collar Crime|Organized Crime
- Source: Official Source ↗
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