Freight Forwarder Pleads Guilty to Facilitating Export of Goods to Iran
On February 6, 2011, the Justice Department announced that Ulrich Davis, a former manager of a Netherlands-based freight-forwarding company, pleaded guilty to conspiring to defraud the U.S. by violating a Bureau of Industry and Security Temporary Denial Order and facilitating the illegal export of goods to Iran. The count to which Davis pleaded guilty carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is currently scheduled for May 15, 2012.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Conspired with Another to Facilitate Unauthorized Shipments to Iran
According to documents filed in this case and court statements, Davis was the sales and business development manager for a company described as a "Netherlands Freight Forwarding Company" in 2007 and 2008. During that time, Davis and a co-conspirator facilitated shipments to be made to Iran without the necessary authorization from the U.S. government and in violation of the law.
BIS Issued Order Denying Export Privileges of Davis' Co-Conspirator's Company
In October 2007, the Bureau of Industry and Security issued a Temporary Denial Order (TDO) under the Export Administration Regulations (EAR) denying the export privileges of Davis’ co-conspirator's company. The TDO prohibited any person, which included Davis, from directly or indirectly exporting or reexporting to or on behalf of the co-conspirator, among others.
Used NY FF to Transport Goods on Behalf of Co-Conspirator's Company
The Netherlands freight forwarding company was affiliated with a New York-based freight-forwarding company. Davis' co-conspirator, who was located in another country, purchased U.S.-origin goods from a New Jersey company, among others, for businesses and governmental agencies of Iran. The New Jersey company was in the business of reselling chemicals, lubricants, sealants and other products used in the aircraft industry.
As part of the conspiracy, Davis and his co-conspirator directed the New York freight forwarding company to arrange for a trucking company to pick up commodities from the New Jersey company and transport them to New York on behalf of the co-conspirator’s company.
Admitted to Facilitating Shipment to Iran After Denial Order Was Issued
Davis admitted that in November 2007, he completed an air waybill that represented certain acrylic adhesives and spray paint coatings obtained from the New Jersey company were to be forwarded on behalf of the co-conspirator’s company to a company in Iran after issuance of the TDO.
In a January 2008 e-mail regarding the shipments, Davis noted that 99% of the goods were destined to be sent to Tehran, Iran. Davis stated he handled shipments to Tehran for various customers who had to shut down their operation because they were doing business with Tehran. Davis acknowledged that at no time was any relief, exception, or other authorization sought from the TDO.
Information charging Ulrich Davis is available here.