(Legal Newsline) — The U.S. Department of Justice announced March 7 that ZTE
Corporation has agreed to pay a $430,388,798 penalty to the United States for allegedly
conspiring to violate the International Emergency Economic Powers Act (IEEPA)
and send U.S.-origin items to Iran.
“ZTE Corporation not only violated export controls that keep
sensitive American technology out of the hands of hostile regimes like Iran’s – they lied to federal investigators and even deceived their own
counsel and internal investigators about their illegal acts,” U.S. Attorney General Jeff Sessions said.
allegedly obtained U.S.-origin items and shipped them to customers based in
Iran for a period of nearly six years. Between 2010 and 2016, ZTE allegedly shipped
roughly $32 million worth of goods to Iran without proper export licenses.
According to the department, the company did so despite knowing that it was
illegal. ZTE purportedly also lied to federal investigators during the case.
Corporation not only violated our export control laws but, once caught,
shockingly, resumed illegal shipments to Iran during the course of our
investigation,” said U.S. attorney John R. Parker. “ZTE Corporation then went
to great lengths to devise elaborate, corporate-wide schemes to hide its
illegal conduct, including lying to its own lawyers.”