ZTE Found Guilty of Violating 2017 Probation
Oct 4, 2018, 7:29 AM by Eric M. Zeman
A judge this week says ZTE violated the terms of the probation imposed on the company in March 2017, when it admitted to illegally shipping technology to Iran. ZTE settled with the government then and agreed to a probationary period through 2020. The judge now says ZTE violated its probation when it made false statements to the U.S. concerning disciplinary actions it was supposed to take against its managers. This same action caused ZTE to run afoul of the Commerce Department, which in April banned ZTE from using U.S. parts and software. That ban was lifted in July after ZTE paid a $1 billion fine, put $400 million more into escrow, and fired dozens of managers. U.S. District Judge Ed Kinkeade extended the term of a U.S.-appointed monitor two more years, through 2022, for violating its probation. A separate monitor from the Commerce Department will oversee ZTE's importing and exporting activities for a period of 10 years.
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