Agar Corporation, Inc. OFAC Settlement: $860K (2010)

During April through June 2005, ACI made seven unlicensed shipments of component parts to its Venezuelan affiliate, with knowledge that the equipment would be incorporated into items to be shipped to Sudan. These shipments violated §§ 538.205, 538.206, and 538.211 of the SSR. The total transaction value for the seven transactions was $444,887.

ACI did not voluntarily disclose this matter to OFAC. OFAC considered the case egregious in light of ACI's intentional efforts to evade sanctions. The base penalty amount for ACI's alleged violations was $1,967,098, the maximum applicable penalty. The settlement amount of $860,000 reflects ACI's cooperation with investigations by the U.S. Bureau of Immigration and Customs Enforcement and OFAC, the substantial criminal penalty to which ACI agreed, ACI's agreement to enter into a tolling agreement requested by OFAC, and ACI's implementation of a robust compliance program that will require export compliance training.

This action was taken in conjunction with a plea agreement between the U.S. Department of Justice and ACI. ACI pleaded guilty to one count of violating IEEPA and agreed to the payment of a $760,000 criminal penalty and to the forfeiture of $380,000, for a total criminal penalty of $1,140,000. ACI also accepted four years' probation, agreed to institute a comprehensive U.S. sanctions compliance program, and agreed to initiate employee training as part of that program.

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