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U.S. Response: U.S. Company Pays Fines for Illegal Exports U.S. company Sigma-Aldrich Corp. has agreed to pay a $1.76 million fine to settle charges of illegally exporting biological toxins, the U.S. Commerce Department announced yesterday (see GSN, Nov. 4). The fine is the largest ever imposed by the department in a case involving biological toxins. Commerce had alleged that a company which Sigma-Aldrich acquired in 1997 had repeatedly exported controlled biological toxins illegally to Europe and Asia prior to the acquisition, and that it continued to do so for more than a year after the acquisition, according to a department press release. Commerce does not believe that any of the exports were intended for use in biological weapons, according to the charges (U.S. Commerce Department release, Nov. 4). The subsidiary has since obtained licenses for all subsequent exports of similar biological toxins, according to a Sigma-Aldrich release. Prior to the settlement, Sigma-Aldrich faced 1,019 charges, with a maximum penalty of a fine of $10.78 million (Sigma-Aldrich release, July 23). Commerce and Sigma-Aldrich agreed to a settlement based on 318 charges, including 268 of unlicensed exports of biological toxins, according to the Commerce press release. The settlement followed a ruling by an administrative law judge that companies can be held responsible for export control violations committed by acquired firms. “This settlement, and the administrative law judge ruling upon which it is based, make two things quite clear,” Undersecretary of Commerce for Industry and Security Kenneth Juster said in the press release. “First, this Commerce Department will vigorously enforce our export control laws to prevent the spread of biological toxins and other substances that can be used for weapons purposes. Second, corporations will be held accountable for violations of U.S. export control laws committed by companies that they acquire” (U.S. Commerce Department release).
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