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

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