British National Sentenced for Attempting to Export Military Equipment to Iran

A British businessman was sentenced Wednesday, January 9, 2013, to 33 months in federal prison for attempting to export to Iran a special component of the Hawk Air Defense Missile. The case was investigated by U.S Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

British businessman Christopher Tappin, 66, of Orpington, Kent, was sentenced Jan. 9 to two years and nine months in federal prison.

In addition to the prison term, the U.S. district judge ordered Tappin to pay an $11,357.14 fine and to be placed under supervised release for three years after he completes his prison sentence.

On Nov. 1, Tappin appeared in federal court to reverse his original not-guilty plea, and he admitted culpability in the scheme. He pleaded guilty to aiding and abetting the illegal export of defense articles, waiving his right to appeal his conviction or challenge the sentence handed down.

By pleading guilty, Tappin admitted that from December 2005 to January 2007 he knowingly aided and abetted others, including his Cyprus-based business associate Robert Frederick Gibson and Portland, Ore., resident Robert Caldwell, in an attempt to illegally export zinc/silver oxide reserve batteries to Iran. These batteries are a special component of the Hawk Air Defense Missile; they are designated as a defense article on the U.S. Munitions List. They require a license or written authorization from the U.S. State Department to be exported.

"Protecting our national security is one of HSI's highest priorities," said Dennis A. Ulrich, acting special agent in charge of HSI El Paso. "This sentence is the result of more than six years of tenacious investigative work by HSI special agents, who are relentless in their efforts to prevent U.S. military products from being illegally exported and falling into the wrong hands."

According to the factual basis filed in this case, which Tappin admitted was truthful and accurate, Tappin knowingly violated U.S. law by obtaining the specialized batteries under false pretenses.

Tappin engaged in phone and email communications with an undercover federal agent to discuss payment and delivery arrangements. In October 2006, Tappin wired about $25,000 from a London financial institution to a U.S. bank account as payment for five of the specialized batteries. Using false shipping documentation and without an export license, Tappin arranged to transfer the batteries to the United Kingdom through his specifically designated freight forwarders, which violates export control regulations.

During the investigation, Tappin agreed to reimburse the undercover agent for $5,000 in fines purportedly being assessed against him by U.S. Customs and Border Protection after it seized the shipment of batteries. Tappin, admittedly, also caused Caldwell to travel to San Antonio in January 2007 to take delivery of the batteries, ensure that they were shipped to him, and to pay the undercover agent $5,000 for the current fines. Tappin, in court, acknowledged that his anticipated profit from the transaction was $11,357.14.

In 2007, Gibson and Caldwell were sentenced to 24 months and 20 months, respectively, in federal prison for their roles in the scheme.

Assistant U.S. Attorney Greg McDonald, Western District of Texas, prosecuted this case.

Army Sergeant Sentenced for Illegal Export of Military Equipment

An Army sergeant, who was previously stationed in the Orlando-area while serving in the military, was sentenced Tuesday, October 30, 2012, to 46 months in federal prison, followed by two years of supervised release, after he violated the Arms Export Control Act and International Traffic in Arms Regulations.

This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Defense Criminal Investigative Service (DCIS).

According to court documents, from 2007 to 2010, Fidel Ignacio Cisneros, 42, of Lynnwood, Wash., served as a soldier in the U.S. Army where he performed various missions in Iraq and elsewhere. During his deployment, Cisneros stole three Acquired Tactical Illuminating Laser Aimers (Atilla-200 lasers), an ACOG rifle scope and several other items. He brought all of the items back to Orlando without first obtaining permission from the Department of Defense.

Using his eBay account, Cisneros auctioned one of the Atilla-200 lasers to the highest bidder, noting in the auction advertisement that it was "impossible to find on the international market." Cisneros shipped the Atilla-200 laser from Orlando to a Japanese national in Tokyo in exchange for $3,200.

According to the U.S. Munitions List and category XII(b) of the International Traffic in Arms Regulations, individuals cannot export Atilla-200 lasers outside of the United States without a license. Cisneros did not have the appropriate license or permission to export the Atilla-200 laser to Japan.

In March 2010, Cisneros also auctioned several other items. He shipped a PEQ AN/PEQ-14 night vision pointer illuminator to California, a Thuraya Hughes 7101 satellite phone GSM+GPS to Kuwait, a Thuraya Satellite phone docker FDU 2500 to California and a PEQ/Atilla 200 rail mounted laser to Nevada.

On Jan. 26, 2011, Cisneros admitted to HSI special gents that he knew it was probably wrong to sell the items and that civilians probably were not allowed to possess them. That same day, agents recovered the remaining Atilla-200 lasers that Cisneros stole from the Army. Federal law enforcement agents in the United States and in Japan subsequently recovered all of the items, with the exception of the satellite phone, that Cisneros sold.

"We have protections in place to ensure that sensitive military technologies do not end up in the hands of our adversaries," said Shane Folden, deputy special agent in charge of HSI Tampa. "This individual, a former soldier, completely disregarded our country's export laws solely to make a dollar."

"It is disheartening when a military member abandons his code of conduct and violates a position of trust for personal enrichment. The DCIS will continue to aggressively investigate these offenses to protect the integrity of the Department of Defense, especially those service members who are serving honorably and selflessly in Southwest Asia," said DCIS Special Agent in Charge of the Southeast Field Office John F. Khin.

Cisneros pleaded guilty to the charges July 31.

Oregon Man Sentenced for Attempt to Export Military Equipment Overseas

A Corvallis, Ore., man was sentenced Friday, July 13, 2012, to 10 months in federal prison for attempting to sell export restricted military-grade equipment to overseas buyers in violation of the Arms Export Control Act.

Geoffrey B. Roose pleaded guilty in March following his February federal indictment, which stemmed from an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

According to court documents, investigators sent a message via eBay advising Roose that the scopes he was auctioning were restricted for export to which Roose responded with "Thanks." Despite the warning, he didn't end his auction. Undercover HSI special agents then purchased one of the military-grade rifle scopes and had it shipped to a European address. Roose shipped the order, which was seized before it left the country. On the customs declaration, Roose identified the $1,700 scope as "telescope w/Mount" valued at $150.

In a search of Roose's email, HSI special agents found he had previously concealed the export of rifle scopes because of export controls. In one email Roose told a critic of his eBay sales: "…try worrying about your life, not stupid federal ITAR rules or stolen property." ITAR refers to International Traffic in Arms Regulations.

"It's always disturbing when an American illegally exports equipment that could be used on the battlefield against U.S. military servicemen," said Brad Bench, special agent in charge of HSI Seattle. "HSI will continue to work aggressively to stem the flow of restricted items from the U.S."

"The laws on exporting military equipment are designed to protect our country and our servicemen," said U.S. Attorney Jenny A. Durkan. "This prison sentence should be a warning to anyone considering sales that will damage our security for their personal profit."

In seeking a significant sentence for Roose, prosecutors highlighted his willful disregard of multiple warnings that it was illegal to send the high tech devices overseas. "There is simply no excuse for Roose's conduct. He was given every opportunity to change course and do the right thing. He was explicitly warned by the undercover ICE agent. He received a warning from the United States Postal Service. He received a warning from a stranger. Every product that he shipped was stamped with a warning about export. Nonetheless, he continued selling restricted items overseas, and was stopped only by his arrest," prosecutors wrote in their sentencing memo.

At sentencing, U.S. District Judge John C. Coughenour said he could not overlook Roose's attitude in response to warnings that selling the scopes overseas was illegal. "These are not hunting scopes," he said. "These are killing scopes."

The Defense Criminal Investigative Service assisted with the investigation. The U.S. Attorney's Office for the Western District of Washington prosecuted the case.