|FOR IMMEDIATE RELEASE||
BUREAU OF INDUSTRY AND SECURITY
| Monday, August 13, 2007
Office of Public Affairs
WASHINGTON — The Commerce Department’s Bureau of Industry and Security (BIS) today announced that P.R.A. World Wide Trading Co., Inc. (PRA), of Brooklyn, N.Y., has agreed to pay $250,000 in civil penalties to settle charges that it violated the Export Administration Regulations (EAR) government the export of dual-use items. Specifically, BIS alleged that PRA conspired to make false statements to the U.S. Government and made false or misleading representations on export control documents. BIS will suspend $90,000 of this figure for one year and subsequently waive this amount if PRA does not commit any violations during the suspension period.
BIS charged that between June 1, 2001 and December 20, 2002, PRA, a freight forwarder, on 41 occasions conspired to make false statements in violation of the EAR and falsely represented the value of the items subject to the EAR on Shipper’s Export Declarations (SEDs).
Previously, on December 19, 2006, criminal sanctions were imposed on the owner and President of PRA, Igor Cherkassky after he pled guilty to one count of conspiracy to make false statements on SEDs. Cherkassky admitted that between 1998 and 2004, while serving as the President of PRA, he instructed employees to prepare and submit SEDs that contained false information about the true value of exported items. Pursuant to the plea, Cherkassky was sentenced to two months of imprisonment, three years of supervised release, a $5,000 criminal fine, and a $100 special assessment.
“Truthful and accurate Shipper’s Export Declarations are critical to protecting the integrity of our dual-use export control system," Assistant Secretary of Commerce for Export Enforcement Darryl W. Jackson said. Assistant Secretary Jackson also commended Special Agents Mike Imbrogna of the Boston Field Office and Scott Dunberg of the New York Field Office for their efforts in this investigation.”
BIS administers and enforces export controls for reasons of national security, anti-terrorism, foreign policy, nonproliferation, and short supply. Criminal penalties and administrative sanctions can be imposed for violations of the EAR.