China's ZTE Corp pleads guilty in U.S. court in sanctions case | Reuters

By Karen Freifeld | NEW YORK NEW YORK Chinese telecom equipment maker ZTE Corp (000063.SZ) (0763.HK) on Wednesday pleaded guilty in U.S. federal court in Texas for illegally shipping U.S. goods and technology to Iran.The guilty plea was part of an agreement the company reached earlier this month with U.S.

Reuters March 23, 2017 04:15:06 IST
China's ZTE Corp pleads guilty in U.S. court in sanctions case
| Reuters

Chinas ZTE Corp pleads guilty in US court in sanctions case
 Reuters

By Karen Freifeld
| NEW YORK

NEW YORK Chinese telecom equipment maker ZTE Corp (000063.SZ) (0763.HK) on Wednesday pleaded guilty in U.S. federal court in Texas for illegally shipping U.S. goods and technology to Iran.The guilty plea was part of an agreement the company reached earlier this month with U.S. authorities that also called for nearly $900 million in fines and other penalties.

The company admitted to three charges: conspiring to export American-made items to Iran without a license from the U.S. government, obstructing justice, and making a material false statement. A five-year investigation had found ZTE conspired to evade U.S. embargoes by buying U.S. components, incorporating them into ZTE equipment and illegally shipping them to Iran.

ZTE, which devised elaborate schemes to hide the illegal activity, agreed to the guilty plea after the U.S. Commerce Department took actions that threatened to cut off the gear maker's global supply chain.

The investigation, spearheaded by the U.S. Department of Commerce, followed reports by Reuters in 2012 that ZTE had signed contracts to ship millions of dollars worth of hardware and software from some of the best-known U.S. technology companies to Iran's largest telecoms carrier. (Reporting by Karen Freifeld; Editing by Lisa Shumaker)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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