Washington, D.C. -- Helco Company, Inc. (Helco) of Warren, Ohio, today agreed to a two-year denial of export privileges and a $90,000 civil penalty to settle charges that it conspired to evade U.S. laws that restrict exports to Libya, U.S. Department of Commerce Assistant Secretary for Export Enforcement F. Amanda DeBusk announced.
The Department alleged that Helco sold equipment and spare parts for use in construction of the Great Man-Made River Project in Libya, to Doornbos, GmbH of Solingen, Germany, which acted as an intermediary for the builder, South Korea’s Dong Ah Consortium. Allegedly, Helco knew that the equipment and spare parts would be reexported from Germany to Libya without the required reexport authorizations. The Great Man-Made River Project is a multi-phase, multi- billion dollar engineering endeavor designed to bring fresh water from wells in southeast and southwest Libya to its coastal cities.
While neither admitting nor denying the allegations, Helco agreed to pay a $90,000 civil penalty, and to a two-year denial of all its export privileges. The agreement stipulates that $25,000 of the civil penalty will be paid within 30 days, and another $25,000 within one year. The remaining $40,000, and the denial of export privileges, will be suspended for two years and then waived if Helco does not violate U.S. export control laws during the suspension.
The case was investigated by the Commerce’s Office of Export Enforcement Washington field office and the U.S. Customs Service. Helco also pled guilty to a one-count criminal Information charging it with conspiracy to export machine parts and construction equipment from the United States to Libya. Helco will pay a $250,000 criminal fine and a special assessment of $200.
The Bureau of Export Administration administers and enforces export controls for reasons of national security, foreign policy, nonproliferation and short supply. Criminal penalties and administrative sanctions can be imposed for violations of the regulations.
In April of 2002 the Bureau of Export Administration (BXA) changed its name to the Bureau of Industry and Security(BIS). For historical purposes we have not changed the references to BXA in the legacy documents found in the Archived Press and Public Information.