ZTE Agrees to Enter Guilty Plea and Pay Over $430.4 Million for Sanctions Violations

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Friday, March 17, 2017
Author: 
Bruce Zagaris
Volume: 
33
Issue: 
3
Abstract: 
On March 7, 2017, ZTE Corporation, a leading Chinese electronics company, agreed to enter a guilty plea and to pay a $430,488,798 penalty to the U.S. for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by illegally shipping U.S.-origin items to Iran, obstructing justice and making a material false statement.  ZTE also reached settlement agreements with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). ZTE has agreed to pay the U.S. government $892,360,064.  The BIS has suspended an additional $300 million, which ZTE will pay if it violates its settlement agreement with the BIS.