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Fokker Services to Settle Sanctions Case for $21 Million

Fokker Services BV, a Dutch aerospace services company, agreed to pay $21 million to settle U.S. claims that it conspired to violate sanctions against Iran, Sudan and Myanmar by providing customers in those countries with aircraft parts, technology and services.

The Hoofddorp, Netherlands-based company made 1,153 shipments of spare, repaired or exchanged parts to customers in the sanctioned countries from late 2005 through late 2010, federal prosecutors in Washington said in a statement today. Fokker Services will forfeit $10.5 million and pay an equal amount to settle a civil claim, according to the statement.

The company hid the transactions by withholding or providing false tail numbers to U.S.-based repair shops and by avoiding transactions with U.S. companies on its “black list” of those that were vigilant about export controls, the Justice Department said.

“For years, Fokker Services treated U.S. export laws as inconveniences to be ‘worked around’ through deceit and trickery,” Ronald Machen, U.S. attorney for the District of Columbia, said in the statement.

The $21 million in penalties levied on Fokker Services is about the same as the revenue derived from parts shipments made in violation of U.S. export-control laws, according to the statement.

Craig Winter, managing director of Fokker Services in Atlanta, didn’t immediately return a phone message requesting comment on the settlement. The agreement is subject to approval by a federal judge in Washington.

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