A federal court in Kentucky found that Arms Export Control Act and International Traffic in Arms Regulations licensing requirements for technical data don't violate the First Amendment as a restriction on free speech. Judge David Hale of the U.S. District Court for the Western District of Kentucky said the licensing requirements "advance important government interests unrelated to the suppression of free speech" and don't burden "substantially more speech than necessary to further those interests" (United States v. Pascoe, W.D. Ky. # 3:22-88).
Joshua Levy, a DOJ attorney who oversaw multiple high-profile export control-related cases, will resign from the federal government Jan. 17, the agency announced this week. Levy most recently served as the U.S. attorney for the District of Massachusetts, leading an office that charged two men in December for shipping sensitive drone technology to Iran (see 2412170021) and that fined American defense firm RTX in October to resolve allegations that it tried to defraud the U.S. government and commit defense export control violations (see 2410160058).
A Chinese national was charged for his role in a scheme to illegally ship export-controlled "defense-related technical data" to China and illegally supply the Department of Defense with Chinese-origin rare earth magnets for aviation systems and military items, DOJ announced.
Christopher Stagg, an export controls lawyer and former senior official with the State Department's Directorate of Defense Trade Controls, has joined Holland & Knight as a partner, the law firm announced. Stagg previously ran his own firm, Stagg PLLC.
Florida resident Yuksel Senbol was sentenced on Oct. 24 to 15 months in prison for violating the Export Control Reform Act and Arms Export Control Act, among other things, DOJ announced. Senbol, who pleaded guilty in May (see 2405080060), "knowingly facilitated the illegal export" of export-controlled drawings of key U.S. military technology and helped her co-conspirators fraudulently procure contracts to supply the Defense Department with "critical military components," DOJ said. She also agreed to forfeit $275,430.90.
U.S. aerospace firm RTX tapped senior counsel Lara Covington to head the company’s compliance with the deferred prosecution agreements announced last week with DOJ and the SEC, Covington announced on LinkedIn. Covington’s official title will be the executive director of the RTX DPA Compliance Program Office, where she will help “ensure the company successfully meets its obligations” to both agencies, she wrote in her bio. RTX will pay close to $1 billion and agreed to a range of compliance commitments to resolve allegations that it committed violations of defense export control regulations, the Foreign Corrupt Practices Act and more (see 2410160058).
American defense firm RTX will pay close to $1 billion to resolve allegations that it tried to defraud the U.S. government and committed violations of defense export control regulations and the Foreign Corrupt Practices Act, DOJ and the SEC said Oct. 16. The company agreed to enter into two deferred prosecution agreements to settle the claims, which included Raytheon’s alleged failure to report bribes in export licensing applications and its submission of false information to the U.S. as part of multiple foreign military defense contracts.
Christopher Stagg, an export control lawyer and former official with the State Department’s Directorate of Defense Trade Controls, started a new role as assistant editor at Bartlett's Annotated International Traffic in Arms Regulations, he announced on LinkedIn. The regularly updated publication is run by trade lawyer Jim Bartlett and includes ITAR-related footnotes, appendixes with statutes, court cases, consent agreements, government guidance and user aids.
A recent federal district court ruling limiting the U.S. anti-smuggling statute to physical goods won't affect export control enforcement efforts on data and other intangible exports sent digitally across borders, lawyers said in interviews. Although the U.S. District Court in Kentucky said a statute barring the unlicensed export of certain merchandise, articles or objects didn't apply to an email with magnet schematics sent to Chinese manufacturers (see 2407290046), lawyers noted that U.S. export control agencies have their own, specific enforcement authorities to regulate those digital transmissions.
Parts of the expert testimony submitted by the U.S. in a criminal export control case should be excluded from the trial because the experts relied on State Department commodity-jurisdiction determinations prepared outside the court, the U.S. District Court for the Western District of Kentucky said July 31. The court said the defendants didn't have a chance to cross-examine the State Department officials who prepared the determinations because they didn't offer testimony during trial.