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Trade Agreements

This archive displays posts tagged as relevant to fraud in government contracting arising from violations of trade agreements and restrictions, including Buy American requirements and export restrictions. You may also be interested in the following pages:

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Trump Order Presents Opportunity for Blowing the Whistle on Buy American Violations

Posted  04/24/17
By the C|C Whistleblower Lawyer Team On April 18th, President Trump signed  Executive Order 13788, calling for the federal government to "scrupulously monitor, enforce, and comply with Buy American Laws, to the extent they apply, and minimize the use of waivers."  There are numerous laws and regulations, generally referred to as "Buy American" laws, that require or express a preference for domestic goods and...

March 7, 2017

Chinese telecom equipment maker ZTE Corporation agreed to enter a guilty plea and pay a $430 million penalty for conspiring to violate the International Emergency Economic Powers Act by illegally shipping U.S.-origin items to Iran.  ZTE simultaneously reached settlements with the Department of Commerce’s Bureau of Industry and Security (BIS) and the Department of the Treasury’s Office of Foreign Assets Control for a total government payout of $892 million.  In addition, the BIS suspended an additional $300 million which ZTE will pay if it violates the settlement.  See DOJ Press Release.  The settlements relate to ZTE’s shipment of roughly $32 million worth of U.S.-origin items to Iran without obtaining the proper export licenses from the U.S. government.  The products were supplied in connection with two Iranian contracts for the installation of cellular and landline network infrastructure. Whistleblower Insider

DOJ Catch Of The Week -- ZTE Corporation

Posted  03/10/17
By the C|C Whistleblower Lawyer Team This week's Department of Justice "Catch of the Week" goes to ZTE Corporation.  On Tuesday, the Chinese telecom equipment maker agreed to enter a guilty plea and pay a $430 million penalty for conspiring to violate the International Emergency Economic Powers Act by illegally shipping U.S.-origin items to Iran.  ZTE simultaneously reached settlements with the Department of...

June 14, 2016

Erdal Kuyumcu, the CEO of New York-based Global Metallurgy LLC, pleaded guilty to one count of conspiring to violate the International Emergency Economic Powers Act, in connection with the export of specialty metals from the United States to Iran.  Kuyumcu and others conspired to obtain over 1,000 pounds of the metallic powder from a U.S.-based supplier for export to Iran.  To hide the true destination of the goods from the U.S. supplier, Kuyumcu and a co-conspirator arranged for the metallic powder to be shipped first to Turkey and then to Iran.  DOJ

June 10, 2016

Amin al-Baroudi was sentenced to 32 months in prison for conspiring to export U.S.-origin goods from the United States to Syria in violation of sanctions imposed on Syria by the U.S. government.  According to court documents, Baroudi admitted that from at least December 2011 through March 2013 he and his co-conspirators exported U.S. tactical equipment to Syria for the purpose of supplying and arming Ahrar al-Sham and other insurgent groups in Syria whose stated goal is to overthrow the Assad government and install an Islamic state.  DOJ

June 9, 2016

Wenxia Man was convicted of conspiring to export fighter jet engines, a drone and related technical data to China, in violation of the Arms Export Control Act.  DOJ

March 2, 2016

Louis Brothers, former president and CEO of Valley Forge Composite Technologies, was sentenced to 93 months in prison and to pay $1.1 million for illegally exporting sophisticated technology equipment to China.  DOJ

January 5, 2016

Wisconsin-based Novum Structures LLC agreed to enter a guilty plea and pay $3 million to resolve its criminal and civil liability arising from its improper use of foreign materials in federally funded construction projects which had “Buy America” requirements.  Novum specializes in the design and construction of glass space frames often used in roofs and atrium enclosures.  The allegations originated in a whistleblower lawsuit filed by Brenda King under the qui tam provisions of the False Claims Act.  She will receive a whistleblower award of approximately $400,000 from the government’s recovery.  DOJ

October 2, 2014

Robbins & Myers Belgium S.A., a wholly-owned subsidiary of Robbins & Myers Inc., agreed to pay $1 million for violating the International Emergency Economic Powers Act and the Export Administration Regulations. Specifically, the company caused four illegal exports relating to oil extraction equipment to a customer operating oil fields in Syria. DOJ