LAWSUITS NEWS & LEGAL INFORMATION
Sales to Iran
Washington, DC: (Apr-30-08) The Bureau of Industry and Security (BIS) brought a lawsuit against Engineering Dynamics, Inc., a Louisiana-based company dealing with computer-assisted design software used for the design of oil and gas drilling platforms and rigs, alleging that it conspired with an individual in Brazil who would sell the company's software to customers in Iran. The suit stated that the company's Brazilian distributor was more a commissioned agent than a distributor.
If a US company sells its products to a distributor, who then resells those products without the US company's knowledge to a proscribed destination, it may be difficult to prove that the US company was aware of the resale. The case claimed that the Brazilian agent was paid a commission and then directly remitted the funds back to Engineering Dynamics. Further, the suit alleged a number of instances of communications between the US company and the Brazilian agent about the customers in Iran.
As part of a settlement reached in the case, Engineering Dynamics agreed to pay $132,791.39 to resolve allegations. Court papers show that two officers of Engineering Dynamics are currently subject to criminal charges in connection with the same sales of the software to Iran. [EXPORT LAW BLOG: ENGINEERING DYNAMICS AGREES TO $132,791 PENALTY FOR SALES TO IRAN]
Published on May-3-08
If a US company sells its products to a distributor, who then resells those products without the US company's knowledge to a proscribed destination, it may be difficult to prove that the US company was aware of the resale. The case claimed that the Brazilian agent was paid a commission and then directly remitted the funds back to Engineering Dynamics. Further, the suit alleged a number of instances of communications between the US company and the Brazilian agent about the customers in Iran.
As part of a settlement reached in the case, Engineering Dynamics agreed to pay $132,791.39 to resolve allegations. Court papers show that two officers of Engineering Dynamics are currently subject to criminal charges in connection with the same sales of the software to Iran. [
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