Transcript
16.30 GMT-12:30 PM/EST
Two Louisiana businessmen will serve several months in a halfway house for violating the US trade embargo against Iran. Both men conspired to export engineering software to Iran through a second party.
Through their Louisiana-based company EDI, Engineering Dynamics Incorporated, James Angehr and John Fowler designed, produced and marketed an engineering software program, assisting in the design of offshore oil and gas structures.
More than a decade ago, they transferred the software ownership to Brazilian business agent Nelson Galgoul.
He sold the software as a Brazilian product through his Brazilian company. He provided technical support to oil and maritime companies in Iran, where he also taught engineers how to design platforms using the software until last year.
The main legal problem with that is: EDI in America was pocketing 80% of the profits generated by Galgoul, according to the US District Court. That software also happens to be subject to US laws and regulations due to its sophistication and potential use. And selling it indirectly to Iran violates the U.S. trade embargo, which President Clinton imposed in 1995.
Executive Orders prohibit the exportation, re-exportation, sale, or supply, directly or indirectly, to Iran of any goods, technology, or services from the U.S. or by a US person.
Apparently the Louisiana businessmen knew in advance about the challenges of exporting their software to Iran themselves.
Tipped off by their third business partner, federal authorities began investigating EDI. Forensic examination of recovered company e-mails last year, reveal their indirect, ongoing business involvement with Galgoul.
In 2005, for example, 71-year-old Angehr sent an e-mail to EDI employees stating that Galgoul, quote: “is already scheduled to go to Iran this week and we benefit as much as anybody by this trip because we cannot do business there…”
Angehr regretted his actions, saying, quote: “I truly love my country and my family very deeply, but I did act very selfishly without regard for them.”
In August, the US District Judge decided to spare them prison time for their remorse and cooperation with the government. Angehr will serve six months in halfway house, while 69-year-old Fowler will spend four months in the same facility. He ordered each to pay a $250,000 fine and about $220,000 in forfeiture, plus 5 years probation.
Galgoul, who also happened to carry a US passport, pleaded guilty to a conspiracy charge. He was sentenced in May to 13 months in prison and will forfeit the money he made from13 years of business dealings with Iran.
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