Feds investigating Sun Microsystems

Wednesday October 02, 2002

SAN JOSE — The U.S. Commerce Department accused Sun Microsystems Inc. of violating export rules in sales it made to Egypt and, through a reseller, to China. 

The hardware sales took place in 1997 and 1998, according to a letter the company received in February from the Commerce Department’s bureau of industry and security. The letter was disclosed Monday by Sun in a regulatory filing. 

Sun said it is in settlement talks. The agency has given the high-powered computer and software maker until Nov. 1 to respond to the accusations. 

“We expect to reach a resolution on this, and it will not have a materially adverse effect on Sun,” company spokesman Andy Lark said Tuesday. 

If Santa Clara-based Sun is found to have violated the regulations, it could face financial penalties or the loss of its export privileges, according the filing.