For Immediate Release: June 15 , 2005
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Valtex was sentenced to five years probation and ordered to pay a $250,000 criminal fine. Alexanyan was sentenced to 3 years probation and a $12,000 criminal fine. In addition, Chief Judge James Rosenbaum ordered that Alexanyan be forbidden from engaging in any international business activities during his probationary period.
Separately, on January 12, 2005 , the Commerce Department reached a settlement with Valtex and Alexanyan concerning related administrative violations of the Export Administration Regulations. Valtex agreed to pay an administrative penalty of $77,000 while Alexanyan agreed to an $88,000 administrative penalty. As part of the civil settlement, Valtex agreed to implement an export management system not later than December 29, 2005.
Controlling the export of sensitive dual-use goods with ballistic missile applications is a top priority of the Commerce Department. This case demonstrates that those who would intentionally evade export controls will be brought to justice,” said Acting Assistant Secretary for Export Enforcement Wendy L. Wysong.
The investigation was jointly conducted by the Commerce Department’s Office of Export Enforcement (OEE) and Department of Homeland Security’s Bureau of Immigration and Customs Enforcement.
Acting Assistant Secretary Wysong thanked Assistant U.S. Attorney David J. MacLaughlin of the U.S. Attorney’s Office for the District of Minnesota for his work in prosecuting the case, and commended Special Agent David Nardella and OEE’s Chicago and San Jose Field Field Offices for their work in the investigation.