Cuba Politics

Eagle Global Logistics, now part of CEVA Logistics pays $140k OFAC Cuba fine

Posted March 05, 2013 by publisher in Cuba Politics.

EGL, Inc. Settles Potential Civil Liability for Alleged Violations of the Cuban Assets Control Regulations and the Iranian Transactions and Sanctions Regulations

EGL, Inc. now part of the CEVA Logistics group of companies, EGL Houston, TX, has agreed to pay $139,650 to settle potential civil liability for alleged violations of the Cuban Assets Control Regulations, 31 C.F.R. part 515 (the “CACR”) and the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (the “ITSR”).

The alleged violations of the CACR occurred from on or about April 19, 2005, to on or about December 15, 2008, when EGL’s foreign affiliates engaged in 280 transactions in which they provided freight forwarding services with respect to shipments to and from Cuba. The alleged violations of the ITR occurred from on or about August 15, 2008, to on or about October 27, 2008, when affiliates of EGL (then part of the CEVA Logistics group) acted as the freight forwarder of ten shipments containing oil rig supplies to Aban VIII, an oil drilling rig located in Iranian coastal waters and operated by Petropars, an affiliated company of the National Iranian Oil Company.

EGL made a voluntary self disclosure of the alleged violations of the CACR, but did not make a voluntary self disclosure of the alleged violations of the ITR. The alleged violations constitute a non egregious case. The base penalty amount for the alleged violations was $206,889.

The settlement amount reflects OFAC’s consideration of the following facts and circumstances, pursuant to the General Factors under OFAC’s Economic Sanctions Enforcement Guidelines, 31 C.F.R. part 501, App. A.

EGL has no history of prior sanctions violations. EGL substantially cooperated with OFAC’s investigation, including by entering into statute of limitations tolling agreements, and by producing responsive materials in a clear and organized fashion.

EGL also took remedial measures to prevent future OFAC violations.

The alleged violations of the CACR and the ITR EGL resulted in significant harm to OFAC’s sanctions programs.

EGL had reason to know that the Aban VIII was an oil rig operated by an Iranian company in Iranian waters.

About EGL, Inc.

Founded in 1984, Houston-based EGL, Inc. operates under the name EGL Eagle Global Logistics. EGL is a leading global transportation, supply chain management and information services company dedicated to providing superior flexibility and fewer shipping restrictions on a price competitive basis. With 2006 revenues exceeding $3.2 billion, EGL’s services include air and ocean freight forwarding, customs brokerage, local pick-up and delivery service, materials management, warehousing, trade facilitation and procurement, integrated logistics and supply chain management services. EGL’s shares are traded on the NASDAQ Global Select Market under the symbol “EAGL.”

About CEVA Logistics

CEVA Logistics (formerly known as TNT Logistics) is a leading global logistics and supply chain management company. It designs, implements and operates complex supply chain solutions on a national, regional or global scale for multinational and large local companies. The company provides customers with end-to-end logistics solutions spanning the entire supply chain. CEVA focuses on a diverse range of market sectors including automotive, tyres, high-tech/electronics, industrial, fast moving consumer goods, and publishing & media. CEVA employs approximately 38,000 people and operates an extensive global network with facilities in 26 countries worldwide, and maintains 567 warehouses globally with a combined space of approximately 7.4 million square meters. For fiscal year 2006, CEVA generated sales of euro 3.5 billion. CEVA is owned by affiliates of Apollo Management VI, L.P., one of the leading private equity investors in the world.

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