U.S. investigates allegations of Dell computer resales into Syria
Dell's standard contract prohibits distributors from reselling products to any sanctioned country, the company said
IDG News Service - The U.S. Department of Justice is investigating a report alleging that Dell computers have been sold to the Syrian regime despite the trade embargo in place, according to a July filing by Dell to the U.S. Securities and Exchange Commission that was made public this week.
The investigation was prompted by a New York Times report on May 3 that Dell computers were being sold to the Syrian government through a Dubai-based distributor.
Also on May 3, Dell received a subpoena from the U.S. Department of Commerce, Bureau of Industry and Security, seeking documents for sales, exports, and services for exports to BDL, a Dell distributor in Dubai, the company said in the filing. That bureau subsequently referred the matter to the DOJ, Dell said in the July 2 filing.
Dell's correspondence with the SEC was only made public Monday, a Dell spokeswoman said in an email on Tuesday. The SEC had asked Dell to address the extent to which the sales described in the Times article represent a liability under U.S. sanctions or export laws.
Dell is cooperating with the investigation and has been in regular communication with the Assistant U.S. Attorney handling the matter, it said in the letter. It is also conducting an internal investigation into the matter with the assistance of outside counsel, it said, adding that Dell is reviewing documents, collecting information and interviewing employees as part of its investigation.
A standard contract prohibits Dell distributors from reselling products to any sanctioned country, Dell said, adding that BDL has signed such a contract. Business with BDL was suspended pending the outcome of the investigation, Dell said. It continues to work with two other distributors in the United Arab Emirates, it added.
Until the governmental inquiries and internal investigation are closed, Dell is unable to determine whether, or to what extent, it will be subject to any liability under U.S. sanctions or export laws, it wrote to the SEC.
"Dell continues to cooperate with the government as the investigation is ongoing," the spokeswoman said in an emailed statement on Tuesday.
- Silicon Valley's 19 Coolest Places to Work
- Is Windows 8 Development Worth the Trouble?
- 8 Books Every IT Leader Should Read This Year
- 10 Hot Hadoop Startups to Watch
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
This state transportation department uses computer science students from a local university as programming interns, and everyone is happy with the arrangement -- until one intern learns how to bring down the mainframe.
- IT Certification Study Tips
- Register for this Computerworld Insider Study Tip guide and gain access to hundreds of premium content articles, cheat sheets, product reviews and more.
- Changing the Way Government Works: Four Technology Trends that Drive Down Costs and Increase Productivity
- This paper discusses four technology-based approaches to improving processes and increasing
productivity while driving down department and agency costs.
- Infographic: Converged Infrastructure Benefits
- This Infographic quantifies the savings organizations are realizing from increased deployment speed, higher availability, and lower annual costs.
- CIOs Deliver Productivity Breakthroughs with Intelligent Digital Signage
- Retailers have long recognized the influence that digital signage provides over a shopper's point-of-purchase decision making process.
- Going Paperless? Here's What You Need to Think About
- As makers of some of the world's most popular PDF solutions, we often consult with businesses & governmental agencies that have the goal...
- The Big Data Opportunity for HR and Finance
- If CEOs, CFOs, CIOs, and CHROs want to drive their businesses forward, they will need to quickly recognize the enormous value of big... All Government IT White Papers
Enhance Your Virtualization Infrastructure With IBM and Vmware
Date: Wednesday, May 14, 2014, 1:00 PM EDT
Virtualization technology is now expanding beyond the server compute elements to encompass networking and storage...
Transforming Finance, Procurement and Supply Chain Effectiveness with Cross-Functional Analytics
Date: May 6th, 2014
Time: 1 PM EDT
Attend this Webcast to find out how Oracle's packaged analytic applications enable line-of-business managers to examine all...
- Cloud Knowledge Vault Learn how your organization can benefit from the scalability, flexibility, and performance that the cloud offers through the short videos and other resources...
- LIVE EVENT: 5/7, The End of Data Protection As We Know It. Introducing a Next Generation Data Protection Architecture. Traditional backup is going away, but where does this leave end-users?
- On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- All Government IT Webcasts