Epsilon Electronics, which sells brands including Power Acoustik and Sound Stream, has been fined over $4 million for allegedly violating US sanctions against selling products indirectly or directly to Iran.
The U.S. Department of the Treasury says Epsilon sold car audio and video products from 2008 to 2012, issuing 39 invoices for product valued at over $3.4 million to a company that “reexports most, if not all, of its product to Iran and has offices in Tehran, and Dubai, and the U.A. E.”
The Fed claimed “Epsilon knew or had reason to know,” that the products were intended for Iran.
Epsilon President Jack Rochel responded with the following statement:
“There have been questions, rumors and accusations arising from the civil fine imposed on Epsilon Electronics by the Office of Foreign Assets Control (OFAC) following allegations that our company violated U.S. embargo laws. We take these allegations very seriously, and intend to challenge these allegations and OFAC’s penalty as we find them to be both inaccurate and unreasonable.”
He added, “Although Epsilon has always taken compliance with the law very seriously, U.S. trade regulations are highly complex, and as a result, there is understandably much confusion surrounding such laws. We also emphasize that this is the first time in Epsilon’s nearly 30 year history that it has ever been subject to such fines.”
Specifically, the US Office of Foreign Asset Control (OFAC) alleged that Epsilon did not voluntarily report these violations to its office and then it ignored a warning from the office about its actions. Five of Epsilon’s shipments occurred after it received a warning letter from the OFAC explaining that current law “prohibited the unauthorized exportation, reexportation, sale or supply of goods, technology, or services to Iran.”
Source: CEoutlook via Dept of Treasury and Law360
