United States Fine Ericsson $1.75 Million for Violating Blockade against Cuba

UNITED STATES, May 24, 2012.- World number one mobile network equipment maker Ericsson's subsidiary in Panama will pay a $1.75 million penalty to the U.S. Department of Commerce for violating U.S. export restrictions on Cuba, according to a settlement agreement obtained by Reuters.

The agreement, which was approved on Thursday, showed that the firm's Panama branch operated a "scheme" under which it sent broken equipment from Cuba to the U.S. for repair after masking its origin.

Ericsson de Panama "knew that exports from the United States to Cuba were unlawful because it had been informed by its parent company of the embargo placed on Cuba by the United States," the agreement said. The settlement was signed last week and given final approval by a Commerce Department official on Thursday.

The export scheme was developed by three former Ericsson de Panama employees, who were dismissed after the scheme was uncovered by the company.

The United States persecutes all over the world the agreements by any enterprise or branch of the United States that have relations with Cuba, by virtue of the economic and financial blockade which has lasted more than 50 years. (Cubaminrex)