Wednesday, August 26, 2009

Export Compliance Manager Issued $15,000 Penalty

Normally, we hear about BIS issuing penalties to export companies, but there may be a new trend in the works. Many of you are familiar with the conviction of the university professor for violation of Arms Export Control Act. This individual was sentenced to 4 years in jail and more in fines.

Most recently, the Commerce Department's Bureau of Industry and Security (BIS) issued a civil penalty to a U.S. manufacturer and an employee for unlicensed exports of certain semiconductor components. The manager for the manufacturer was issued a $15,000 civil penalty for making false and misleading statements to BIS Special Agents during the investigation of the company. This is one of the few cases in which a corporate export compliance manager has been assessed civil penalties. Exporters and their export compliance departments should take heed and invest some time in reviewing their compliance programs and educating employees at all levels of the consequences of violating export control regulations.

Here’s a question for our readers. Do you think the manager will end up paying the $15,000 penalty out of her pocket?


Anonymous said...

Of course she will be forced to pay. This story is not as big as it is being out to be. She lied regarding material facts during an investigation. Instead of scare tactics, it would be better for the readers to recall that if you tell the truth, most likely all that will happen is you get fired. But when you attempt to cover up materially relevant facts as was done here, you will likely be fired and fined. Adopt a simple policy - though shall not lie.

Anonymous said...

She has too, I believe. I believe the company is forbidden from paying it for her.

Anonymous said...

It would be a big deal to me if I had to pay $15,000 out of my pocket, but I agree that doing the right thing and telling the truth should keep you out of trouble. Of course some employers put pressure on employees to not disclose certain things. At that point, the employee has to go by their own ethical standards and make a decision. I'd rather tell the truth and lose my job than to compromise my ethics and reputation.

Anonymous said...

Always know your responsibility under 18 USC 1001 - it's what got Martha Stewart jailed - you can't lie to a Federal Agent