The Bureau of Industry and Security (“BIS”) recently released a settlement agreement in which Robert Abreu, the Senior Director of Strategic Sales for Supermicro Computers, agreed to pay $60,000 to settle charges arising from illegal exports of computer motherboards to Iran. The motherboards were shipped by Supermicro and Abreu to a distributor in the UAE which then re-exported the motherboards to Iran.

The charging letter set forth four separate shipments to Iran. Each shipment was alleged to have violated EAR § 764.2(b) inasmuch as Abreu aided and abetted export of items without the required licenses.

As usual, BIS can’t resist resist piling on by charging both an offense and the lesser included offense and then collecting fines for both. With respect to the fourth shipment, the charging letter also alleged that Abreu violated EAR § 764.2(e) because he had “knowledge” that a violation would occur.

Finally, Abreu was charged with violating EAR § 764.2(g) by making a false statement to a BIS Agent. According to the charging letter, Abreu made a false statement to the agent when he said that he did not know that the items were being reexported from the UAE to Iran until after the shipments were made.

Two facts set forth in the charging letter suggest why BIS may have sought such a significant fine against an employee of the exporter. First, Abreu was alleged to have sent an email in connection with the fourth shipment describing the shipment as a sale involving “motherboards to Iran.” Second, according to the charging letter, Abreu had previously sent a letter to Supermicro employees advising them of the embargo on shipments to Iran. This may also explain why Abreu agreed to such a significant fine.

As we have reported previously, Abreu’s employer, Supermicro, agreed last September to pay to BIS a civil penalty of $125,400 in connection with shipments of motherboards and computer chassis to Iran, some of which appear to be the same shipments charged against Abreu.

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