U.S. v. ARCH TRADING CO. Case Brief

United States Court of Appeals, Fourth Circuit1993
987 F.2d 1087

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Case Brief Summary & Legal Analysis

4 min read

tl;dr: A company was convicted for violating a presidential embargo on Iraq. The court affirmed, holding that violating a presidentially-issued, congressionally-authorized executive order constitutes a criminal “offense” for conspiracy purposes and that the underlying statute was constitutionally sound.

Legal Significance: This case establishes that violating an executive order, when authorized by a statute with criminal penalties like the IEEPA, constitutes an “offense” under the general conspiracy statute (18 U.S.C. § 371). It also affirms the constitutionality of the IEEPA against non-delegation and vagueness challenges.

U.S. v. ARCH TRADING CO. Law School Study Guide

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Case Facts & Court Holding

Key Facts & Case Background

In November 1988, Arch Trading Co. contracted with an Iraqi state-owned company to supply and install laboratory equipment. After Iraq invaded Kuwait on August 2, 1990, President Bush, acting under the International Emergency Economic Powers Act (IEEPA), issued Executive Order No. 12722, prohibiting U.S. persons from performing contracts in or traveling to Iraq. Arch Trading received a copy of the order that same day. Despite the prohibition, Arch Trading executives attempted to travel to Iraq and later hired a Jordanian firm to complete the installation, reimbursing its expenses. To recover a $200,000 performance deposit from a Kuwaiti bank, Arch Trading submitted backdated documents and falsely represented to the Treasury Department’s Office of Foreign Assets Control (OFAC) that it had completed performance and ceased all contact with Iraq before the embargo began. Arch Trading was subsequently indicted and convicted of conspiracy to commit an offense against the United States (18 U.S.C. § 371), violating the IEEPA, and making false statements to a federal agency (18 U.S.C. § 1001).

Court Holding & Legal Precedent

Issue: Does a violation of a presidentially-issued executive order, authorized by the International Emergency Economic Powers Act (IEEPA), constitute a conspiracy to commit an ‘offense’ against the United States under 18 U.S.C. § 371, and is the IEEPA an unconstitutional delegation of legislative power to define crimes?

Yes. The court affirmed the convictions, holding that a violation of an Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non pr

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Legal Issue

Does a violation of a presidentially-issued executive order, authorized by the International Emergency Economic Powers Act (IEEPA), constitute a conspiracy to commit an ‘offense’ against the United States under 18 U.S.C. § 371, and is the IEEPA an unconstitutional delegation of legislative power to define crimes?

Conclusion

This case solidifies the principle that violating presidentially-issued sanctions under the IEEPA Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco

Legal Rule

When Congress provides criminal sanctions for violations of executive orders that it Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.

Legal Analysis

The court first addressed the conspiracy conviction under 18 U.S.C. § 371. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure

Flash-to-Full Case Opinions

Flash Summary

  • A violation of an executive order is an “offense” under the
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id e

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