China-based Zhongxing Telecommunications Equipment Corporation (ZTE) and a subsidiary, ZTE Kangxun Telecommunications, agreed to pay a combined civil and criminal penalty of $1.19 billion for illegal shipments to Iran and North Korea.  A five-year investigation led by the U.S. Commerce Department found that ZTE conspired to ship equipment with U.S. components to Iran, in violation of a U.S. embargo.  ZTE shipped millions of dollars worth of these items from 2010 to 2016, even after becoming aware that investigations into the transactions were underway.  The company was also involved in 283 shipments of telecommunications equipment to North Korea.  The conspiracy involved an elaborate scheme by ZTE executives to evade export controls and deceive investigators, including by establishing and using "detached" or shell companies to mask involvement in transactions involving Iran.  ZTE officials also expunged the word "Iran" from internal documents and emails and used code words to hide involvement with other embargoed countries. The settlement includes a $661 million payment to Commerce, with $300 million suspended during a seven-year probationary period, and a $100 million payment to the U.S. Treasury Department.  The U.S. District Court for Northern Texas may also impose a penalty of $430.5 million in combined criminal fines and forfeitures.