WORLD_ US_ Justice Department Investigating Dell Sales to Syria

8:53 pm Dec 9, 2013

Justice Department Investigating Dell Sales to Syria

By Shira Ovide
The Wall Street Journal




The Department of Justice is investigating possible sales of Dell computers to Syria. —Reuters


The U.S. Department of Justice has been investigating possible sales of Dell computers to the Syrian government, the company said in documents released Monday.

In the July letter to the Securities and Exchange Commission released Monday, a Dell official said the company has been cooperating with the Justice Department inquiry into claims Dell computing equipment had been sold to Syria through a Dubai-based distributor allied with Dell.

U.S. sanctions ban sales of most U.S.-made goods to Syria, and sales of technology gear have been further restricted recently in response to reports of human-rights abuses by the Syrian government.

“Dell continues to cooperate with the government as the investigation is ongoing,” a Dell spokesman said in a statement Monday. “Dell requires all resellers to comply with U.S. trade laws and regulations, just as Dell does. Resellers of Dell products and services are contractually prohibited from selling or shipping any technology in violation of those laws.”

The New York Times reported in May the sales of Dell products to a Dubai-based distributor and then to a Damascus firm that provides computers to the Syrian government. In the May article, a Dell spokesman said the Round Rock, Texas, company was investigating an anonymous complaint it received about the Syria sales.

The SEC correspondence released Monday shows the May news article prompted the SEC to ask Dell for more information about the matter. The U.S. Department of Commerce also issued subpoenas to Dell for documents about sales to the Dubai distributor. In June, the Commerce Department told Dell the Syria matter had been referred to the Department of Justice, the newly released SEC letter shows.

“Dell has been in regular communication with the Assistant U.S. Attorney handling the matter and is cooperating with the investigation,” Dell told the SEC in the July 2 letter. Dell also said it is conducting an internal investigation with outside lawyers.

A Justice Department spokesman declined to comment Monday.

Read more: http://blogs.wsj.com/digits/2013/12/09/justice-department-investigating-dell-sales-to-syria/



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