CEO of Tech Company to Pay $340K for Illegal Exports to Libya
On July 1, 2011, the Bureau of Industry and Security announced that Mohammed El-Gamal, President and CEO of Applied Technology Inc. (ATI), has agreed to pay a civil penalty of $340,000 to settle allegations related to the export of controlled networking equipment to Libya without the required export licenses, in violation of the Export Administration Regulations (EAR).
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Exported Equipment Controlled for Anti-Terrorism to Libyan Company
BIS alleged that on three occasions during June and July 2006, El-Gamal exported networking equipment, controlled for Anti-Terrorism reasons, to the General Electric Company of Libya, without the required Department of Commerce licenses. In connection with one of these shipments, agents searched an ATI employee flying from Michigan to Libya and found three computer cards hidden in his carry-on luggage. In addition, BIS alleged that El-Gamal made false or misleading statements to agents in the course of the investigation.
Agreed to Conduct a Compliance Audit for Past and Future Exports
To settle the administrative case, El-Gamal agreed to conduct a compliance audit of ATI covering the first year of exports following the settlement, put in place a compliance program, attend BIS export compliance training, and complete an audit for past exports.
Also Pleaded to Making False Statements Earlier in 2011, Was Ordered to Pay $5,000
In addition, in February 2011, El-Gamal pleaded guilty to one count of Material False Statements. In May 2011, he was sentenced to pay a fine of $5,000, to perform 100 hours of community service, and to serve two years supervised probation. El-Gamal was also ordered to provide monthly reports to the Department of Commerce regarding his export activities during the probationary period.