http://havanajournal.com/politics/entry/two-thirds-of-ofac-june-2008-penalties-for-cuban-embargo-compliance-violati/

HavanaJournal.com: Cuba Politics

2/3 of OFAC June 2008 penalties for Cuban Embargo compliance violations

Posted June 26, 2008 by publisher in Cuba Politics.
---------------------------------------------------------------------------------------------------

Two thirds of OFAC’s Release of Civil Penalties Information report for June 2008 contains violators and fines for violating the Cuban Embargo. One third were for violations of the Iranian Transactions Regulations.

ENTITIES – 31 CFR 501.805(d)(1)(i)

1. Spirit Airlines, Inc. Settles Cuban Assets Control Regulations Allegations:

Spirit Airlines, Inc., Miramar, Florida, has remitted $100,000.00 to settle allegations of violations of the Cuban Assets Control Regulations occurring between approximately September 2004 and March 2007. Spirit voluntarily disclosed to OFAC that it may have acted without an OFAC license or outside the scope of its license by transferring funds to Cuba for over-flight payments.

2. United Radio, Inc. d/b/a BlueStar Settles Cuban Embargo Allegations:

United Radio, Inc. d/b/a BlueStar, Florence, KY, has remitted $67,574.00 to settle allegations of violations by its subsidiary BlueStar Canada (“BSC”) of the Cuban Assets Control Regulations occurring between March 1, 2004 and November 16, 2005. OFAC alleged that BSC shipped electronic products to Cuba. BlueStar voluntarily disclosed this matter to OFAC.

3. Sonida International, Inc. Assessed a Penalty for Violating the Cuban Assets Control Regulations:

Sonida International, Inc. (“Sonida”), Forest Hills, NY, has been assessed a $2,040.00 civil monetary penalty for its violation of the Cuban Assets Control Regulations occurring on or about June 3, 2004. OFAC alleged that Sonida initiated a wire transfer for a group tour of Cuba. Sonida did not voluntarily disclose this matter to OFAC.

For a copy of OFAC’s Penalty Notice issued to Sonida, please visit http://www.treas.gov/offices/enforcement/ofac/civpen/penalties/SONIDApn.pdf

INDIVIDUALS – 31 CFR 501.805(d)(1)(ii)

4. One individual was assessed a penalty totaling $1,000.00 for allegedly dealing in property in which Cuba or a Cuban national had an interest: On or about July 23 to July 25, 2004, the individual engaged in unlicensed travel-related transactions incident to a trip to Cuba. The individual did not voluntarily disclose this matter to OFAC. One individual has agreed to a settlement totaling $500.00 for allegedly dealing in property in which Cuba or a Cuban national had an interest: In February 2004, March 2004, July 2004 and February 2005, the individual allegedly purchased Cuban origin cigars offered for sale on the Internet. The individual did not voluntarily disclose this matter to OFAC.

5. One individual has agreed to a settlement totaling $390.00 for allegedly dealing in property in which Cuba or a Cuban national had an interest: Between June 2004 and September 2004, on three occasions the individual allegedly purchased Cuban-origin cigars offered for sale on the Internet. The individual did not voluntarily disclose this matter to OFAC.

6. One individual was assessed a penalty totaling $809.82 for allegedly dealing in property in which Cuba or a Cuban national had an interest: On November 5, 2004, December 2004, and February 17, 2005, the individual allegedly purchased Cuban-origin cigars offered for sale on the Internet. The individual did not voluntarily disclose this matter to OFAC.

Note: Here are the Iranian Transactions Regulations:


7. FRP Services & Co. (America), Inc. Settles Allegations of Violations of the Iranian Transactions Regulations: FRP Services & Co. (America), Inc. (“FRP Services”), of Terrytown, NY, has remitted $12,500.00 to settle allegations of violations of the Iranian Transactions Regulations. The alleged violations occurred on or about October 30, 2006. OFAC alleged that FRP Services facilitated a business transaction between its subsidiary in the United Arab Emirates and an entity in Iran without an OFAC license. FRP Services has instituted a comprehensive U.S. sanctions compliance program. FRP Services did not voluntarily disclose this matter to OFAC.

8. Z.A.S. International Agrees to Settle Allegations of a Violation of the Iranian Transactions Regulations: Z.A.S. International (“ZAS”), of Lafayette, CA has remitted $1,320 to settle allegations of a violation of the Iranian Transactions Regulations. OFAC alleged that on or about June 2, 2006, ZAS used the services of an Iranian vessel to transport goods from China to Saudi Arabia without an OFAC license. ZAS did not voluntarily disclose this matter to OFAC.

9. Confi-Dental Products, Co. Settles Allegations of Violations of the Iranian Transactions Regulations: Confi-Dental Products, Co. (“Confi-Dental”) of Louisville, CO, has remitted $5,500.00 to settle allegations of violations of the Iranian Transactions Regulations. The alleged violations occurred between May and July 2005. OFAC alleged that Confi-Dental acted without an OFAC license when it entered into contract with, and attempted to make shipments to, an Iranian company. Confi-Dental did not voluntarily disclose this matter to OFAC.

Member Comments

---------------------------------------------------------------------------------------------------
On June 26, 2008, publisher wrote:

One would be led to believe that two thirds of OFAC’s resources are invested in pursuing violators of the Cuban Assets Control Regulations… half of those being for buying Cuban cigars over the internet.

Your government at work, keeping us safe from Cuban cigars.

---------------------------------------------------------------------------------------------------
On June 27, 2008, edward wrote:

Does that include Arnold Schwarzenegger?

---------------------------------------------------------------------------------------------------
On June 27, 2008, manfredz wrote:

and when you look at the two cigar fines, $390.- and $804.- , there’s no way the govt could have come even close to breaking even in the costs investigating these cases…..

---------------------------------------------------------------------------------------------------
On June 27, 2008, abh wrote:

Manfredz is right…I wonder who is even supporting these investigations…everybody must think it’s stupid.

---------------------------------------------------------------------------------------------------
On June 27, 2008, manfredz wrote:

since in both cases the disclosure was involuntary (makes sense, I cant see someone purchasing Cuban cigars, and then calling up OFAC and saying “Come and get me”) and am sure considerable resources and costs went to come up with these horrendous fines….
Am wondering if they keep the fines so low to keep people from going to court and challenging the whole thing…..

---------------------------------------------------------------------------------------------------
On June 27, 2008, publisher wrote:

I have heard that the fines are VERY negotiable.

---------------------------------------------------------------------------------------------------
On June 27, 2008, abh wrote:

they sure seem negotiable and arbitrary