BIS Fines California Business Owner for False Export Filings
The Bureau of Industry and Security fined a California business owner $540,000 and suspended his export privileges after he allegedly caused false information to be submitted on controlled exports to Russia, BIS said Jan. 27. The agency said Julian Demurjian, who owned CIS Project, violated the Export Administration Regulations when he provided false values for exports of telecommunication equipment controlled for national security, encryption and anti-terrorism reasons.
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On six occasions in 2014 and 2015, Demurjian “significantly undervalued” the items when he prepared invoices for a freight forwarder, causing the forwarder to submit false electronic export information filings in the Automated Export System. BIS said Demurjian valued the items at below $2,500 so the exports would not trigger an EEI filing requirement.
BIS said it suspended $480,000 worth of Demurjian’s fine and will instead impose a two-year probationary period, including a two-year suspension of export privileges under the EAR, under an administrative settlement. “The Bureau of Industry and Security will not tolerate exporters undermining the integrity of our export control system through the submission of false or misleading information,” Kevin Kurland, BIS’s acting assistant secretary for export enforcement, said in a statement. Kurland added that BIS “will continue applying the investigative resources and authorities necessary” to protect U.S. security.