Menu
US investigates allegations of Dell computer resales into Syria

US investigates allegations of Dell computer resales into Syria

Dell's standard contract prohibits distributors from reselling products to any sanctioned country, the company said

The U.S. Department of Justice (DOJ) 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 (SEC) 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.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags DellUS Department of Justicelegalgovernment

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments