Arrest made for illegal U.S. exports to Iran
Federal agents in New Jersey on Saturday evening arrested the former manager of a Dutch freight forwarder for allegedly conspiring with others to export controlled exports of plane parts, peroxide and other materials to Iran.
Ulrich Davis, 50, of the Netherlands was arrested at Newark Liberty International Airport as he attempted to board a plane bound for the Netherlands. He was charged in a criminal complaint with one count of conspiracy to violate the International Emergency Economic Powers Act and the Iranian Transaction Regulations.
Davis appeared before U.S. Magistrate Judge Patty Shwartz in Newark federal court on Monday morning and was detained.
'This investigation demonstrates our ongoing commitment to pursue individuals, including those in the freight forwarder community, who knowingly violate U.S. export control laws matter where in the world they set up their illicit operations,' said Eric Hirschhorn, Commerce Department's undersecretary for industry and security, in a statement.
According to the criminal complaint, Davis was the sales and business development manager for a company described in the complaint as 'the Netherlands freight-forwarding company' in 2007 and 2008. The forwarder was affiliated with a New York-based forwarder.
Davis and the Dutch company caused several shipments to be made to Iran without the necessary authorization from the U.S. government and in violation of the law.
In May 2007, the Netherlands forwarder caused attitude direction indicators for planes to be sent from the United States to Iran. Davis directed the transport company to 'disguise the nature of the shipment by removing the invoices and list of items from the box.' Also that month, Davis' company forwarded a fuel control unit for use on a Boeing 747 to Iran. Then in September 2007, the Dutch forwarder shipped C-130 parts to Iran, and Davis was listed as the employee responsible for the shipment.
In 2007 and 2008, Davis also obtained various materials from a New Jersey company, including adhesive primer, peroxide and aerosols, that were sent to Iran in multiple shipments from August 2007 to January 2008. The shipments were made by the New York-based forwarder via another country. At least one of the shipper's export declarations filed by the New York forwarder falsely identified the Netherlands as the ultimate consignee, the court papers said. Davis had instructed an employee of the New York forwarder to falsely list the Netherlands as the country of ultimate destination for the exports. The address in the Netherlands was a post office box.
In a January 2008 e-mail regarding the shipments, Davis said '99 percent of these goods were destined to be send to Teheran [sic]/Iran, which was and still is a very difficult destination due to political reasons.'
If convicted of the charge, Davis faces a maximum potential penalty of 20 years in prison and a $1 million fine. ' Chris Gillis