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ZTE Pleads Guilty to Sanctions Violations
In a shocking revelation, ZTE Corporation has pleaded guilty to conspiring to violate US sanctions by shipping US-origin items to Iran, thereby obstructing justice and making a material false statement. The plea was entered before US District Judge Ed Kinkeade.
According to plea documents filed in the case, between January 2010 and January 2016, ZTE, either directly or indirectly through a third company, shipped approximately $32,000,000 of US-origin items to Iran without obtaining the proper export licenses from the US government. The items were used for installing cellular and landline network infrastructure in Iran.
ZTE used a third company, Beijing 8 Star, as a vehicle to hide its illegal shipments of US items to Iran. The company was supplied with necessary capital and control by ZTE, and was intended to purchase embargoed equipment from suppliers and provide it under the contract. However, ZTE itself purchased and shipped the embargoed goods under the contract, packaging them with its own self-manufactured items to hide the US-origin goods.
As a result of its actions, ZTE has agreed to pay a fine of $286,992,532 and a criminal forfeiture of $143,496,266. The company will also submit to a three-year period of corporate probation, during which an independent corporate compliance monitor will review and report on ZTE’s export compliance program.
Attorney General Jeff Sessions, Acting Assistant Attorney General Mary B. McCord, US Attorney John R. Parker, and Assistant Director Bill Priestap made the announcement today. ZTE agreed to plead guilty as part of a larger settlement agreement with the US government, which also includes settlements with the US Department of Commerce’s Bureau of Industry and Security and the US Department of the Treasury’s Office of Foreign Assets Control.
In total, ZTE has agreed to pay the US government $892,360,064. The Bureau of Industry and Security has suspended an additional $300,000,000, which ZTE will pay if it violates its settlement agreement.
ZTE’s actions were a clear violation of US sanctions and demonstrate a blatant disregard for the law. The guilty plea serves as a reminder of the consequences of violating US sanctions and the importance of compliance with export regulations.
Key Facts
- State: Texas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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