The Down Range Forum
Member Section => Politics & RKBA => Topic started by: Rastus on January 19, 2010, 08:22:36 PM
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For Immediate Release
January 19, 2010 U.S. Department of Justice
Office of Public Affairs
(202) 514-2007/TDD (202) 514-1888
Twenty-Two Executives and Employees of Military and Law Enforcement Products Companies Charged in Foreign Bribery Scheme
Defendants Arrested in Las Vegas and Miami; 21 Search Warrants Executed in United States and United Kingdom
WASHINGTON—Twenty-two executives and employees of companies in the military and law enforcement products industry have been indicted for engaging in schemes to bribe foreign government officials to obtain and retain business, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Channing Phillips for the District of Columbia; and Assistant Director Kevin Perkins of the FBI’s Criminal Investigative Division. Twenty-one defendants were arrested in Las Vegas yesterday. One defendant was arrested in Miami. The indictments stem from an FBI undercover operation that focused on allegations of foreign bribery in the military and law enforcement products industry.
The 16 indictments unsealed today represent the largest single investigation and prosecution against individuals in the history of DOJ’s enforcement of the Foreign Corrupt Practices Act (FCPA), a law that prohibits U.S. persons and companies, and foreign persons and companies acting in the United States, from bribing foreign government officials for the purpose of obtaining or retaining business. The indictments unsealed today were returned on Dec. 11, 2009, by a grand jury in Washington, D.C.
In connection with these indictments, approximately 150 FBI agents executed 14 search warrants in locations across the country, including Bull Shoals, Ark.; San Francisco; Miami; Ponte Vedra Beach, Fla.; Sarasota, Fla.; St. Petersburg, Fla.; Sunrise, Fla.; University Park, Fla.; Decatur, Ga.; Stearns, Ky.; Upper Darby, Penn.; and Woodbridge, Va. Additionally, the United Kingdom’s City of London Police executed seven search warrants in connection with their own investigations into companies involved in the foreign bribery conduct that formed the basis for the indictments.
“This ongoing investigation is the first large-scale use of undercover law enforcement techniques to uncover FCPA violations and the largest action ever undertaken by the Justice Department against individuals for FCPA violations,” said Assistant Attorney General Lanny A. Breuer. “The fight to erase foreign bribery from the corporate playbook will not be won overnight, but these actions are a turning point. From now on, would-be FCPA violators should stop andponder whether the person they are trying to bribe might really be a federal agent.”
“Corrupt payments to foreign officials to obtain or retain business erode public confidence in our free market system and threaten to undermine foreign governments,” said U.S. Attorney Channing Phillips. “These indictments set forth serious allegations and reflect the Department's commitment to aggressively investigate and prosecute those who try to advance their businesses through foreign bribery.”
“Investigating corruption at all levels is the number one priority of the FBI’s Criminal Division,” said Assistant Director Kevin Perkins of the FBI’s Criminal Investigative Division. “In this era of global commerce, the FBI is committed to curbing corruption at home or overseas. Companies should prosper through honest business practices, not the practice of back room deals and bribery.”
The indictments allege that the defendants engaged in a scheme to pay bribes to the minister of defense for a country in Africa. In fact, the scheme was part of the undercover operation, with no actual involvement from any minister of defense. As part of the undercover operation, the defendants allegedly agreed to pay a 20 percent “commission” to a sales agent who the defendants believed represented the minister of defense for a country in Africa in order to win a portion of a $15 million deal to outfit the country’s presidential guard. In reality, the “sales agent” was an undercover FBI agent. The defendants were told that half of that “commission” would be paid directly to the minister of defense. The defendants allegedly agreed to create two price quotations in connection with the deals, with one quote representing the true cost of the goods and the second quote representing the true cost, plus the 20 percent “commission.” The defendants also allegedly agreed to engage in a small “test” deal to show the minister of defense that he would personally receive the 10 percent bribe.
The indictments charge the following executives and employees of the various companies in the military and law enforcement product industries:
Daniel Alvirez, 32, and Lee Allen Tolleson, 25, the president and director of acquisitions and logistics at a company in Bull Shoals, Ark., that manufactures and sells law enforcement and military equipment;
Helmie Ashiblie, 44, the vice president and founder of a company in Woodbridge, Va., that supplies tactical bags and other security-related articles for law enforcement agencies and governments worldwide;
Andrew Bigelow, 40, the managing partner and director of government programs for a Sarasota, Fla., company that sells machine guns, grenade launchers and other small arms and accessories;
R. Patrick Caldwell, 61, and Stephen Gerard Giordanella, 50, the current and former chief executive officers of a Sunrise, Fla., company that designs and manufactures concealable and tactical body armor;
Yochanan R. Cohen, aka Yochi Cohen, 47, the chief executive officer of a San Francisco company that manufactures security equipment, including body armor and ballistic plates;
Haim Geri, 50, the president of a North Miami Beach, Fla., company that serves as a sales agent for companies in the law enforcement and military products industries;
Amaro Goncalves, 49, the vice president of sales for a Springfield, Mass., company that designs and manufactures firearms, firearm safety/security products, rifles, firearms systems and accessories;
John Gregory Godsey, aka Greg Godsey, 37, and Mark Frederick Morales, 37, the owner and agent of a Decatur, Ga., company that sells ammunition and other law enforcement and military equipment;
Saul Mishkin, 38, the owner and chief executive officer of an Aventura, Fla., company that sells law enforcement and military equipment;
John M. Mushriqui, 28, and Jeana Mushriqui, 30, the director of international development and general counsel/U.S. manager of an Upper Darby, Penn., company that manufactures and exports bulletproof vests and other law enforcement and military equipment;
David R. Painter, 56, and Lee M. Wares, 43, the chairman and director of a United Kingdom company that markets armored vehicles;
Pankesh Patel, 43, the managing director of a United Kingdom company that acts as sales agent for companies in the law enforcement and military products industries;
Ofer Paz, 50, the president and chief executive officer of an Israeli company that acts as sales agent for companies in the law enforcement and military products industries;
Jonathan M. Spiller, 58, the owner and president of a Ponte Vedra Beach, Fla., company that markets and sells law enforcement and military equipment;
Israel Weisler, aka Wayne Weisler, 63, and Michael Sachs, 66, owners and co-chief executive officers of a Stearns, Ky., company that designs, manufactures and sells armor products, including body armor;
John Benson Wier III, 46, the president of a St. Petersburg, Fla., company that sells tactical and ballistic equipment.
All of the defendants except Giordanella were arrested yesterday by FBI agents in Las Vegas. Giordanella was arrested in Miami, also by FBI agents.
Each of the indictments allege that the defendants conspired to violate the FCPA, conspired to engage in money laundering, and engaged in substantive violations of the FCPA. The indictments also seek criminal forfeiture of the defendants’ ill gotten gains.
The maximum prison sentence for the conspiracy count and for each FCPA count is five years. The maximum sentence for the money laundering conspiracy charge is 20 years in prison.
These cases are being prosecuted by Assistant Chief Hank Bond Walther and Trial Attorney Laura N. Perkins of the Criminal Division’s Fraud Section, and Matthew C. Solomon of the U.S. Attorney’s Office for the District of Columbia. The cases were investigated by the FBI Washington Field Office squad that specializes in investigations into FCPA violations.
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Wow, this story is too fresh to really comment, but stay tuned.
There could be some far reaching effects in the firearms industry and with many of the industries support companies. :-\
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As posted elsewhere,
Amaro Goncalves, 49, the vice president of sales for a Springfield, Mass., company that designs and manufactures firearms, firearm safety/security products, rifles, firearms systems and accessories;
Is a VP of S&W
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http://www.downrange.tv/forum/index.php?topic=10848.0
;)
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BTW: Anyone heard from M'ette lately ??? ;D ;D ;D
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BTW: Anyone heard from M'ette lately ??? ;D ;D ;D
She's hiding out and counting beans on the floor of the ladies room........... :o :o :o
Corner, here I come....... ;D
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Sounds like the Feds waited until they were all in one place.
Anyone able to connect companies to the people, other than the S&W guy?
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I tried googling names but came up empty on all of the 8 or so I tried. I am really suspicious of this whole investigation considering how well timed it seems to be. With SHOT and the overall political conditions right now. It's to convenient if you ask me. Especially considering how many people from so many companies are supposedly involved. We'll see soon enough.
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First, arresting these guys at SHOT makes sense. They are all at the same place and it got every other company's undivided attention. Fair enough. Thing is though, I'm iffy on the law itself. From an FP position it makes good sense. Problem is though, that in a lot of foriegn countries (and Florida) its a pay to play system. If companies from other countries can offer payola and US companies can't, we'll lose every time. If something like this happens, it should be in the form of a treaty where major players in the arms trade like China, France Russia and Israel agree to pass similar laws. Otherwise it seems like we're making a fashion statement at the expense of reality.
FQ13
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First, arresting these guys at SHOT makes sense. They are all at the same place and it got every other company's undivided attention. Fair enough. Thing is though, I'm iffy on the law itself. From an FP position it makes good sense. Problem is though, that in a lot of foriegn countries (and Florida) its a pay to play system. If companies from other countries can offer payola and US companies can't, we'll lose every time. If something like this happens, it should be in the form of a treaty where major players in the arms trade like China, France Russia and Israel agree to pass similar laws. Otherwise it seems like we're making a fashion statement at the expense of reality.
FQ13
+1
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I wonder why the company names weren't mentioned? I wonder how many of the companies have big fat contracts with the US gov?
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First, arresting these guys at SHOT makes sense. They are all at the same place and it got every other company's undivided attention. Fair enough. Thing is though, I'm iffy on the law itself. From an FP position it makes good sense. Problem is though, that in a lot of foriegn countries (and Florida) its a pay to play system. If companies from other countries can offer payola and US companies can't, we'll lose every time. If something like this happens, it should be in the form of a treaty where major players in the arms trade like China, France Russia and Israel agree to pass similar laws. Otherwise it seems like we're making a fashion statement at the expense of reality.
FQ13
Yes this is all true...but it wasn't a bust of dealings with a foreign country, it was a STING. The federal government set out to ENTRAP these "undesireables" with a (most likely) irresistable deal, and have now locked them up for doing what our own government has been doing for years with foreign countries: making shady deals. But it's not even a shady deal!!!
It's an OBAMA CRANK BAIT that they all bit on! This is BS. Of course the little dictators and the cabinet guys get their cut...how many of them are being greased right now by our own government? But Bho can't get them one way, he'll get them another.
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Aresting them at shot makes perfect sense.
1 they are all there, so there is very little chance of the word getting out and them fleeing.
2 sends a very strong message to the industry.
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I have a had time believing 22 different companies would be in together on something like this. ???
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First, arresting these guys at SHOT makes sense. They are all at the same place and it got every other company's undivided attention. Fair enough. Thing is though, I'm iffy on the law itself. From an FP position it makes good sense. Problem is though, that in a lot of foriegn countries (and Florida) its a pay to play system. If companies from other countries can offer payola and US companies can't, we'll lose every time. If something like this happens, it should be in the form of a treaty where major players in the arms trade like China, France Russia and Israel agree to pass similar laws. Otherwise it seems like we're making a fashion statement at the expense of reality.
FQ13
The problem is that ever since Boeing got in trouble with Korea, it's been established law that "Payola" violates US law.
One of the companies I worked for years ago made us all sit through a class on Business ethics, the basic rule of thumb was play it by the book because seemingly small things can have major consequences.
Example, You've been doing a lot of work with Mr. X over the years and have gotten to know his family, You give his wife a set of earrings for her birthday. 2 weeks later His company signs another contract with yours. An investigator could present the "Birthday Present" as buying influence.
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I wonder why the company names weren't mentioned? I wonder how many of the companies have big fat contracts with the US gov?
My guess is that, at this time, they have no proof this was with the company's approval or knowledge and thus are only prosecuting the individual and protecting the name of the assumed innocent company.
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This ammo for the U.N. Arms treaty, watch your rights gun owners.
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Those Executives should have renamed themselves "Lobbyists" so what they were doing would be legal. The difference between bribing officials and lobbying is like the difference between a "cemetary" and a "marble orchard" - one just sounds better than the other but at the end of the day they are the same thing.
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I attended an ITAR course last year that was pretty interesting.
Big loser was ITT. They gave away (gifts) 4th gen night vision google to folks without proper export license.
Total fine in 2007 was $100 million.
The strange thing about this the criiminal invetigation is that it's usually run by DCIS, State, Commerce or ICE. The warrants are served by the US Marshals. The FBI normally works on this stuff only if there is espionage involved.
I think this is grandstanding to the gunmakers by AG Holder. Message delivered by the FEBE's
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BTW: Anyone heard from M'ette lately ??? ;D ;D ;D
We exchanged some texts about an hour ago that ended with her telling me to hang it in my ass.
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Bribery is the norm elsewhere, while the US has (openly) banned it. Therefore, there has developed a double standard, and a catch 22 for US businesses trying to operate in the rest of the world. Just another example of the US trying to take the high road instead of dealing with reality.
I will say I love the fact we (basically) don't have bribery IN the US, other than the legalized versions (unions, permits, etc).
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Bribery = Criminal
Kickback = Bad
Rebate = Good
Finder's Fee/Commission = OK
What is the difference between these four words?
The penalty attached to them!
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As the details leak out, this is sounding more and more like entrapment, with the Feds approaching these guys. The only justification legally (and morally) is if they could show these guys had a "prior disposition" to commit the crime in question. If they had a reasonable suspicion backed with evidence that this was SOP the indictments will stand. If they just got out the phone book to see who would bite, they are screwed.
FQ13
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" Woody: This ammo for the U.N. Arms treaty, watch your rights gun owners."
Me: "Sadly all my guns were recently lost in a tragic deep sea boating incident."