|Underlying Misconduct:||False Statements, Obstruction of Justice, Unlawful Export|
|Matter Type:||DOJ Criminal|
|Relevant Jurisdiction(s):||US District Court for the Norther District of Texas, Dallas Division|
|Fine Amount:||$892,360,064 Forfeiture and $286,992,532 Fine|
|Reporting Agencies:||Department of Commerce, Department of Justice Fraud Section, Federal Court|
|Resolution Form:||Plea Agreement|
|Agreement Date:||March 6, 2017|
|Monitor Reference Term:||Independent Corporate Monitor|
|Monitor Identity:||James M. Stanton|
|Monitorship Term:||3 Years|
|Monitor Selection Process:||
Per the original Plea Agreement, the Host Organization was to propose 3 candidates to DOJ, from which DOJ selected - consistent with DOJ Policy. However, on March 22, 2017, it appears that the Judge presiding over the matter unilaterally selected a Monitor.
|Time to Propose Monitors:||45 days|
|Time to Engage Monitor:||90 days|
|Time to First Report:||7 mos|
|Monitor Required Qualifications:||
Qualifications and experience sufficient, in the opinion of the Department, to properly discharge the Monitor's duties; ability to access and deploy appropriate internal Host Organization resources as necessary to discharge the Monitor's duties; and sufficient independence from the Host Organization to ensure effective and impartial performance of the Monitor's duties.
|Summary of Monitor's Scope:||
Assess and monitor Host Organization's compliance with the terms of the Agreement(s), including evaluating the Host Organization's compliance and ethics program with respect to the International Emergency Economic Powers Act, the Iran Transactions and Sanctions Regulations, the Export Administration Regulations, and other relevant export control laws, and making recommendations for improvement.
|Summary of Monitor's Activities:||
Review and evaluate the effectiveness of the Host Organization's internal controls, record-keeping, and existing or new procedures as the relate to compliance with the IEEPA, ITSR, EAR, and other applicable export control laws. Review and evaluation will include an assessment of the Export Control Policies and Procedures as actually implemented. Inspection of relevant documents, including policies and procedures relating to Export Control Policies and Procedures; on-site observation and testing of systems and procedures, including internal controls, record-keeping, and internal audit processes; meetings with and interviews of, relevant employees, directors and other persons at mutually convenient times and places, and analyses, studies and testing of Export Control Policies and Procedures, including export control computer systems and networks.
No business with Host Organization for a period of 2 years after the Monitorship; however, could serve in the Auditor role per the DOC BIS Agreement, which goes 3 years beyond the Monitorship.
Inserted into the Amended Appendix A: Monitor is a judicial adjunct pursuant to Federal Rules of Civil Procedure 53, not an employee or agent of the Host Organization or the Reporting Agency, and no attorney-client privilege will be formed with the Host Organization.
|Other Relevant Information:||ZTE-DOC-BIS-Settlement-Agreement-7Mar2017.pdf