On February 6, 2012, Ulrich Davis, the former manager of a Netherlands Freight Forwarding Company, pled guilty to a charge of conspiracy to defraud the United States by violating a Temporary Denial Order (“TDO”) issued by the United States Department of Commerce, Bureau of Industry and Security (“BIS”). The TDO, issued in October 2007, denied export privileges to Davis’ co-conspirator, who was not named or charged in the Information to which Davis pled guilty.
During his time with the Netherlands Freight Forwarding Company, Davis conspired with his unnamed co-conspirator to facilitate illegal exports to Iran without the necessary authorization from the United States. To accomplish these shipments, Davis and his co-conspirator directed a New York freight forwarding company affiliated with the Netherlands Freight Forwarding Company to transport U.S. origin goods to New York on behalf of the company subject to the TDO. The U.S. origin goods were then forwarded to the Netherlands Freight Forwarding Company, which would then transship the goods to Iran. The goods in question included chemicals, lubricants, sealants, and other products used in the aircraft industry.
Davis admitted to facilitating one such shipment of adhesives and spray paint after the TDO went into effect, and that at no time during the period of the TDO was any relief, authorization or exception requested from BIS for the exports.
The charge to which Davis pled guilty carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for May 15, 2012.
Special Agents in the BIS and Department of Homeland Security’s Immigration and Customs Enforcement led the investigation.
For further information or questions regarding freight forwarding, export controls and the risks associated with these topics, contact Glenn Wicks or Ronce Almond at (202) 457-7790.