California Company Fined $1.5 million for Illegal Exports to Iran, Syria and Sudan

The Commerce Department’s Bureau of Industry and Security (BIS) announced today that Barracuda Networks, Inc. of Campbell, California (Barracuda), and its wholly-owned subsidiary, Barracuda Networks, Ltd. of the United Kingdom (Barracuda UK), agreed to a $1.5 million civil penalty to settle allegations that it committed violations of the Export Administration Regulations (EAR) related to the unlicensed export and reexport of U.S.-origin equipment and software to Iran, Syria and Sudan. The illegally exported items are controlled by the Commerce Department for National Security and/or Anti-Terrorism reasons and as encryption items. Iran, Syria and Sudan are designated as State Sponsors of Terrorism.

"A strong penalty was sought in this case because the violations involved Iran, Syria and Sudan, were ongoing over a period of years, and occurred with Barracuda’s knowledge that violations would occur," said Commerce Assistant Secretary for Export Enforcement David W. Mills.

BIS alleged that, beginning in April 2009 and continuing through May 2012, on 26 occasions Barracuda acted with knowledge of a violation of the EAR by selling or servicing U.S.-origin devices and related software to the sanctioned destinations of Syria, Iran and Sudan. The commodities exported by Barracuda consisted of web filters, firewall products, link balancers and server backup software. BIS also alleged that on 11 occasions Barracuda UK acted with knowledge of a violation of the EAR by selling or servicing U.S.-origin devices and related software to Syria and Iran with knowledge that a violation would occur.

Barracuda received significant mitigation due to its voluntary disclosure of the alleged violations.

BIS is the principal agency involved in the implementation and enforcement of export controls for commercial technologies and many military items. The BIS Office of Export Enforcement detects, prevents, investigates and assists in the sanctioning of illegal exports of such items. For more information, please visit us at

www.bis.doc.gov, and follow us on Twitter: http://twitter.com/BISgov.

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