FBI Arrests 21 people at SHOT show

General General Discussion
1

http://www.lasvegassun.com/news/2010/jan/19/fbi-arrests-21-las-vegas-foreign-bribery-case/

The FBI arrested 21 people Monday in Las Vegas in what is being described as the largest single investigation and prosecution against individuals in the history of the Justice Department’s enforcement of the Foreign Corrupt Practices Act.

Those individuals and another person arrested in Miami are executives and employees of military and law enforcement products companies who were indicted for engaging in schemes to bribe foreign government officials to obtain and retain business, the Justice Department announced today.

In connection with the FBI’s undercover operation, 16 indictments were unsealed today. The indictments were returned on Dec. 11 by a grand jury in Washington.

All 21 of the individuals arrested in Las Vegas had been attending the 2010 Shooting, Hunting, Outdoor Trade Show and Conference, which runs from today through Friday at the Sands Expo & Convention Center. All were arrested off-site at an undisclosed location in the city, federal authorities said at a press conference held in Washington.

“It just happened that we had the opportunity to bring them all together at one time at one place,” Kevin Perkins, assistant director of the FBI’s criminal division said.

Assistant Attorney General Lanny Breuer of ther Justice Department’s Criminal Division said that while Las Vegas is a convention center city, the fact that all the individuals converged on Las Vegas is not a negative reflection of the city. He simply chalked it up to a locale that hosts conventions for a variety of industries.

“As one person said in my office, this is one case where what happens in Vegas doesn’t stay in Vegas,” Breuer said.

The investigation involved roughly 150 FBI agents who executed search warrants throughout the country. London police also assisted in the investigation.

“The fight to erase foreign bribery from the corporate playbook will not be won overnight, but these actions are a turning point,” Breuer said.

U.S. Attorney Channing Phillips, who represents the District of Columbia, added: “Corrupt payments to foreign officials to obtain or retain business erode public confidence in our free market system and threaten to undermine foreign governments.”

The indictments allege that the defendants engaged in a scheme to pay bribes to the minister of defense for a country in Africa. 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 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.

Those who were indicted and the location of their companies included Daniel Alvirez and Lee Allen Tolleson, Bull Shoals, Ark., Helmie Ashiblie, Woodbridge, Va., Andrew Bigelow, Sarasota, Fla., R. Patrick Caldwell and Stephen Gerard Giordanella, Sunrise, Fla., Yochanan Cohen, San Francisco, Haim Geri, North Miami Beach, Fla., Amaro Goncalves, Springfield, Mass., John Gregory Godsey and Mark Frederick Morales, Decatur, Ga., Saul Mishkin, Aventura, Fla., John and Jeana Mushriqui, Upper Darby, Pa., David Painter and Lee Wares, United Kingdom, Pankesh Patel, United Kingdom, Ofer Paz, Israel, Israel Weisler and Michael Sachs, Stearns, Ky., and John Benson Wier III, St. Petersburg, Fla.

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.

I don’t know many of the names offhand (I’ll have to google them) except for Amaro Goncalves, the VP sales for S&W

2

Good on them. Atleast they are fulfilling their job duties. Way to go FBI. Too bad it had to be at what otherwise was a convention of law abiding folks, tarnishing the reputation of the show. Hope it stands a a lesson to any and all who try to get away with similar antics.

3

Similar/duplicate thread already started here https://www.m4carbine.net/showthread.php?t=45316

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There is alot more to the story than what you read. I happen to know 2 of the people that were picked up. Thankfully they were able to bond out.

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UPDATE- http://www.businessweek.com/news/2012-02-21/u-s-seeks-to-drop-first-foreign-bribery-sting-case.html

Thanks to an astute member.

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Wow. Pretty telling when you have to request that your own case be dismissed with prejudice.

Yep, that thread was closed. Funny how some in that thread were calling for the heads of those 22 indicted. I specifically questioned why, particularly considered the whole “innocent until proven guilty” thing. Wonder how those folks feel on the subject now?

On a side note, one of the names associated with this case is Lanny Breuer. That name ring a bell anyone?

7

http://www.fedseclaw.com/uploads/file/2012%2001%2020%20Goncalves%20Motion%20to%20Dismiss.pdf

The problem with the case seems to stem from the fact that no one “conspired” with any of the other parties. Kind of hard to prove conspiracy without a conspiracy…

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I wonder if the amount of tax dollars wasted on this investigation and case equaled or exceeded the amount of the alleged bribes.

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More info:

http://www.bloomberg.com/news/2012-02-21/u-s-drops-first-foreign-bribery-case-based-on-undercover-sting-operation.html

10

So has Eric Holder bonded out yet?

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I find it disheartening in so many ways. People who are supposed to be stalwart and resolute in their convictions towards the Constitution and their own country will gladly throw anyone under the bus and pass judgment in such a haphazard, illogical manner. I can guess who signs their paychecks.

12

What were the details of the cases where the defendants were accquited?

I’m also wondering if the FCPA has been a significant contributor to the decline in US exports over the years.

I would also love to know the reasoning behind the U.S.'s reasoning behind the request for dismisall with prejudice;)

13

Another example of big government and abuse of powers. Looking for problems where there are none so you just create them.

The DOJ needs a major overall. The focus should be border security not and the harrassment of citizens. Funny this kind of thing continues to happen to people related with firearms be it private citizens or gun industry professionals.

Where are the DOJ priorities?

Our tax dollars at work. . .

Payments for Business

[i]The government said the defendants agreed to pay a $3 million commission for the business, half of which they were told would be paid to the country’s defense minister.

Lawyers for Lee Tolleson, a defendant in the first trial, accused the government of setting up the sting “to raise awareness” of the FCPA and, according to an e-mailed statement.

Tolleson, of Mountain Home, Arkansas, was director of acquisitions and logistics for ALS Technologies Inc., a company that sells law-enforcement and military equipment.

“Lee was the victim of a scheme by the government” that sought to “entrap him and others by faking an overseas business scam,” his lawyers said in the statement.[/i]

So does this mean “smoke grenades” will be available again to the lowly serf civilians? I doubt it, last I heard was the BATFE ruled their fuse was a DD.

14

I couldn’t agree more. Between this and that thread on Ciener felony charge it’s sad to see people cheering like people in a roman colosseum demanding blood. I would never wish a felony charge on another human being unless it was truly deserved, and even then the life destroying implications for reputation, livelihood, etc are harsh.

Innocent till proven guilty.

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The problem is that most of those people cheering for blood have no clue as to how fast it could be them in front of the screaming crowds. The amount of stupid shit that the government railroads people with is absolutely astounding and none of us are exempt. Piss off the wrong federal employee who has the backing of the government, with bottomless pockets, and you’ll find out how much wrath can be bestowed on one of our own citizens.

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Oh I know, it’s scary scary stuff.

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What a fucking joke. It is bribery is expected in many foreign countries and is impossible to do business without kick backs. This is the Obama administration selective enforcement to advance a anti gun polical agenda.

18

A friend of mine was immersed in this case. Due to shitty legal advice he may still get screwed. He lost his job, suffered health issues and family problems. He also lost his entire firearms collection in order to pay legal fees and expenses.

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I don’t equate the Ceiner issue to this one. Anyone that met the man, or even worse had business dealings with him, is simply feeling a sense of schadenfreude at a douchebag getting his due. Has nothing to do with whether they are NFA/ATF violations or not. Anyone that’s dealt with him would be happy to hear he got so much as a parking ticket.

In the case of the SHOT arrests I agree, I don’t understand people relishing in a bunch of strangers facing charges and legal problems that could come home to roost. I say this with no idea what the arrests were for or any of the facts in the case, from either side, so I am not taking a guilty/innocent side. If nothing else it’s bad press for the industry to have so many arrests at the largest industry trade show.

20

That is exactly why they chose that venue to do it. Otherwise they could have easily done it in the normal fashion. We aren’t talking about cocaine cowboys and armed criminals who can’t be located.

Most all of these people were CEO’s, V.P’s. and respected people in the industry with careers and families.