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UK exporter who breaches Iran sanctions ordered to repay profit

November 28th, 2014 - Posted by europeansanctions.com in Sanctions

Posted on November 26, 2014 by Michael O'Kane on europeansanctions.com

On 21 November 2014, a judge at the Central Criminal Court in London made two confiscation orders against a Managing Director and his company to pay a total of £1.14 million, after breaching trade sanctions with Iran.

The Managing Director, Gary Summerskill, received a 30 month prison sentence in March 2014, after pleading guilty to knowingly exporting alloy valves illegally to Iran, via his company Delta Pacific Manufacturing Limited. The total value of the exports to Iran was in excess of £3 million.

The court had found that Delta Pacific Manufacturing Limited made three illegal shipments of alloy valves to Iran without an export licence and tried to conceal the breach by diverting the components through Hong Kong and Azerbaijan. The export of alloy valves to Iran is currently subject to EU sanctions (EC Regulation No 428/2009), due to their potential for use in the construction of weapons.

Mr Summerskill has been ordered to pay £68,000 in confiscation, within six months or serve a further 15 months in prison. His company, Delta Pacific Manufacturing Limited, was ordered to pay £1,072,000 after having already been fined £225,000 in March 2014.

Peter Millroy, assistant director, criminal investigation, HM Revenue & Customs said "Summerskill knew that he was acting illegally – he manipulated a system which has been put in place to protect public safety simply to line his own pockets. He has not only paid the price by losing his liberty but he now has to pay back the money he has made from his criminal activities or face more time in jail."

End notes

This article first appeared on European Sanctions Law & Practice (http://europeansanctions.com/), a blog by Maya Lester (+44 20 7379 3550, maya.lester@brickcourt.co.uk), a barrister at Brick Court Chambers, and Michael O'Kane (+44 (0) 20 7822 7777 mokane@petersandpeters.com), head of Business Crime at Peters & Peters.

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