VASCO May Have Inadvertently Supported 'Proliferators Of Weapons Of Mass Destruction'

VASCO

executives admitted in an 8-K released Tuesday afternoon that the company may have inadvertently engaged in illegal activity. "VASCO management has recently become aware that certain of its products which were sold by a VASCO European subsidiary to a third-party distributor may have been resold by the distributor to parties in Iran." The interactions may have been prohibited under U.S. Executive Order 13224 and/or Executive Order 13382, which block transactions with and freeze the assets of "proliferators of weapons of mass destruction and their supporters." VASCO is currently conducting an internal investigation with assistance from outside parties. The results of that investigation will be reviewed by multiple federal agencies, but there is not yet any word of independent activity by federal authorities. The data security company's stock dove by 12 percent in response to the news and has only rebounded slightly.