OFAC Settled Sanctions Case With Pegasus Worldwide Logistics
The logistics firm agreed to a $175,015 payment for violations involving illicit drug trafficking sanctions.
Updated on Oct. 10, 2026 in Financial Crime
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Pegasus Worldwide Logistics has settled a civil liability claim with the Treasury Department for $175,015. The firm admitted to committing 10 apparent violations of federal sanctions regulations.
Why it matters
The settlement was issued after federal regulators determined the firm failed to respond to a subpoena for six months and engaged in prohibited dealings with a designated company. The agency deemed the conduct non-egregious but noted it was not voluntarily disclosed.
Pegasus Worldwide Logistics agreed to remit $175,015 to resolve 10 total violations. These included four counts of illicit drug trafficking sanctions breaches and six reporting and procedures violations.
The players
Office of Foreign Assets Control
This agency acts as the financial intelligence and enforcement arm of the U.S. Treasury Department to administer and enforce economic and trade sanctions.
Pegasus Worldwide Logistics
This company is a logistics provider that has been found liable for violating U.S. drug trafficking sanctions through the importation of prohibited equipment.
International Criminal Court
Based in The Hague, this intergovernmental organization investigates and prosecutes individuals for genocide, crimes against humanity, and war crimes.
The details
Pegasus facilitated the importation of a machine provided by a designated entity between September 2023 and February 2024. The firm also failed to respond to an official subpoena from the Office of Foreign Assets Control for a duration of six months.
Timeline
September 2023 to February 2024: Pegasus committed apparent sanctions violations.
October 9, 2026: OFAC announced the settlement and updates to the SDN list.
Legal Context
The settlement follows established enforcement patterns under the Illicit Drug Trafficking Sanctions Regulations to penalize entities that facilitate prohibited cross-border commerce. Regulators consistently utilize these financial penalties to maintain the integrity of national trade blockades.
This enforcement action underscores the strict compliance obligations for logistics firms operating within U.S. jurisdiction to avoid future service disruptions. Businesses must maintain rigorous vetting procedures to ensure they do not facilitate trade with entities on the SDN list.
The takeaway
Entities are legally obligated to respond to federal subpoenas promptly to avoid escalating penalties. Voluntary disclosure and active cooperation remain the most effective methods for organizations to mitigate potential financial liabilities during an investigation.
Further reading
For more information on current federal enforcement efforts, visit the Financial Crime section.
More information
View the full details of the OFAC enforcement release and sanctions actions to understand the scope of the regulatory changes.
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Should federal agencies aggressively penalize companies for technical violations of international sanctions?
