Temrex, 2 Company Officials Settle Charges of Illegal Export to Iran
The Temrex Corp., a manufacturer of restorative and cosmetic products for dentistry, will pay $8,750, and its president and vice president for sales and marketing $5,250 each, to settle charges that they illegally exported items destined for Iran without the required Office of Foreign Assets Control license, in violation of the Iranian Transactions Regulations.
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In 2008, Temrex exported about 5,000 Tofflemire matrix bands, subject to the Export Administration Regulations and the Iranian Transactions Regulations, to Iran via the United Arab Emirates, without the required OFAC authorization, BIS alleged. According to the BIS settlement agreements, Jackie Prather, vice president for sales and marketing at Temrex, arranged the sale of the matrix bands at a trade show in Dubai, UAE. After the meeting, Prather began preparing an application for the required OFAC license. When the Iranian purchaser emailed Prather to ask about the status of the application, Prather replied that she had “part of the OFAC license completed and was away from the office for a time and must start on that again.” Ethan Levander, president of the company, was copied on the email. Prather then proceeded with the transaction without the license, and a trading company in the UAE was listed as the ultimate consignee on the Shippers Export Declaration.
BIS subsequently contacted Temrex and its officials with its suspicions that the items were being diverted to Iran. Levander at first denied all knowledge of the alleged diversion to Iran, although he did say he knew an OFAC license would be required for such a shipment, BIS said. But when confronted with the response to the Iranian customer’s inquiry on the status of the license, to which Levander had been copied, he admitted knowledge of the transaction. Prather said she decided the license application process would be too time consuming, BIS said.
By their actions, Prather violated 15 CFR 764.2(b), “Causing, Aiding, or Abetting a Violation; the Temrex Corporation violated 15 CFR 764.2(e), “Acting with Knowledge,” because its actions showed it knew it had to get OFAC authorization for the item; and Levander violated 15 CFR 764.2(g), “False Statements to BIS in the Course of a Violation,” for initially suggesting he had no knowledge of the transaction.
The terms of the settlement say the payments are due within 30 days, after which BIS may charge penalties and interest and suspend the parties’ export privileges for one year. No parties admitted guilt as a part of the settlement agreement.
Settlement agreement for Temrex available here.
Settlement agreement for Prather available here.
Settlement agreement for Levander available here.