FBI arrests 21 at SHOT 2010 Show

[MatthewVanitas]

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.
...

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

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.
...

Not rushing to judgement either way, but this has to be putting a damper on the good cheer.

Anyone recognise the names of those folks and who they work for? Are these obscure military suppliers, or folks that we buy from personally?

 

[kwelz]

I think there are some S&W people in there. Don't quote me on that though.

 

[harmonic]

I think there are some S&W people in there. Don't quote me on that though.

Here?

WASHINGTON, Jan 19 (Reuters) - U.S. authorities accused 22 people, including an executive for Smith & Wesson Holding Corp (SWHC.O), with violating federal bribery laws involving the sale of various arms, the U.S. Justice Department said on Tuesday.

The indictments charged the individuals, including Smith & Wesson Vice President for Sales Amaro Goncalves, with violating the Foreign Corrupt Practices Act and conspiracy to commit money laundering involving the sale of items including guns and body armor.

Also charged was the chief executive of Protective Products of America Inc (PPA.TO), R. Patrick Caldwell, who previously worked for the U.S. Secret Service for 27 years and was the special agent in charge of the division for the vice president's protection.

That company filed for bankruptcy protection last week and sought approval to be acquired by an affiliate of the private investment firm Sun Capital Partners Inc.

The indictments, filed in December, were unsealed by a U.S. judge on Tuesday and follow undercover operations last year. The individuals were arrested on Monday in Las Vegas and Miami.

In the case involving Goncalves, an unidentified business associate who was a former executive for an arms manufacturer arranged a meeting between Goncalves and two undercover FBI agents who posed as representatives of an unnamed African country's minister of defense, the indictment stated.

The agents told Goncalves that in order to win a contract for the sale of guns he would have to add a 20 percent "commission" to price quotes, half of which would go to the purported minister of defense and the rest would be split between the others, according to the indictment.

Goncalves provided price quotes for two sales, a small one of 25 guns and a larger one with 1,800 pistols. He gave two price quotes for the transactions, including one that had its price inflated by 20 percent, the indictment said. (Reporting by Dan Margolies and Jeremy Pelofsky, editing by Gerald E. McCormick)

 

[NinjaFeint]

I am sorry to hear that this happened. While I hope anyone guilty of these crimes is punished, I am sorry that we have negative stories coming out of what should be a positive show. It will be interesting to see how much media play/slant this gets.

 

[danez71]

They didnt arrest them "at" the SHOT SOW as the thread title indicates.

"All were arrested off-site at an undisclosed location in the city, federal authorities said"

However, they were attending the show.

 

[Victor1Echo]

The problem with bribes is that before you got caught it was a kickback.

 

[danprkr]

Actually, it's that if you don't bribe the right folks you wind up arrested.

 

[atblis]

Depending on what country it is, you don't get business done without bribes. They are simply part of how things are done.

 

[fireman 9731]

How were they bribing them?

Putting a gun to their head?

Business is business.

 

[Mr.Davis]

Anyone recognise the names of those folks and who they work for? Are these obscure military suppliers, or folks that we buy from personally?

My Google-Fu is strong.

Among the defendants named in the indictments are Daniel Alvirez, 32, and Lee Allen Tolleson, 25, the president and director, respectively, of acquisitions and logistics for ALS Technologies in Bull Shoals. ALS manufactures and sells law enforcement and military equipment.

Helmie Ashiblie - iShot
Andrew Bigelow - Heavy Metal Armory
Patrick Caldwell and Stephen Gerard - Long Island Firearms
Yochanan Cohen - "the chief executive officer of a San Francisco company that manufactures security equipment, including body armor"
Israel Weisler and Michael Sachs - "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 - SRT Supply

That's all I have time to Google Up.

 

[10mm Mike]

So its illegal to bribe foreign business and its ok to bribe domestically? seriously?

 

[Hani Pasha]

Depending on what country it is, you don't get business done without bribes. They are simply part of how things are done.

Unfortunately, this is very true.

 

[Seancass]

Depending on what country it is, you don't get business done without bribes. They are simply part of how things are done.

This is very true. It's not a bribe or something wrong, it's as much a part of business as a handshake is to us. I'd like to know a lot more details before really judging.

 

[w_houle]

Amaro Goncalves Smith & Wesson vice president of sales

 

[gunnutery]

It sounds like a planned anti-gun operation. The FBI did search warrants all over the country but decided to arrest them all after having attended the biggest gun industry assembly, INTENTIONALLY bringing bad press to our hobby's most anticipated event. Perhaps there is more information that we do not have and Las Vegas was the most opportune time to arrest. But it still doesn't seem quite right.

Don't get me wrong, if these people are guilty of a crime then by all means bring them to justice. But I would wager that the health care/ pharmaceutical industry is even more worse off, but I don't recall seeing any arrests stemming from that type of business.

 

[Mike J]

If the agents told him he had to add the 20 percent...etc. to get the contract isn't that entrapment?

 

[Bovice]

So the Federal Government thinks it's fine to bribe Nebraska in order to gain a vote for public healthcare which is going to wreck healthcare in general and take more money out of our pockets, but actually trying to sell something and bolster the AMERICAN economy is illegal and worthy of a federal arrest?

This country is circling the bowl.

 

[billdeserthills]

Sounds to me like just one more reason not to attend the Shot Show

 

[kingpin008]

If the agents told him he had to add the 20 percent...etc. to get the contract isn't that entrapment?

No, for the same reason that any other sting operation isn't entrapment. Law enforcement can present you with all the illegal situations they want, but they're not forcing you to involve yourself in them. Lead a horse to water, and all that.

These folks had the choice not to play ball. They're all businessmen, so they obviously know how things work. If they went along with this deal, it's because they chose to.

 

[blkbrd666]

Maybe our commie leader IS working a different angle!

 

[MisterMike]

Sounds like they caught up with a bunch of crooks who just happened to be in the gun industry. This is not gun-related. It's just a story about dishonesty.

 

[10mm Mike]

So the Federal Government thinks it's fine to bribe Nebraska in order to gain a vote for public healthcare...

Thats the first thing that came to my mind as well.

 

[alpinespider]

I will not say they are guilty, as we do still kinda live in the USA where you are innocent until proven guilty. However, I for one will not make excuses for anyone doing dishonest things either in Government or Business. That is the current problem with the government and if we excuse anybody that is dishonest just because we have some perceived dog in the hunt then we are no better than the whole corrupt system. I will be watching to see how the facts come out on this.

 

[10mm Mike]

That is the current problem with the government and if we excuse anybody that is dishonest just because we have some percieved dog in the hunt then we are no better than the whole corrupt system.

True, and it would make us hypocritical as well. However, it appears that there is a double standard with regards to bribery in foreign business vs domestic business (not to mention what our senators do behind closed doors). With that in mind, I would say they are innocent, even if they are "guilty" of a hypocritical law.

 

[alpinespider]

With that in mind, I would say they are innocent, even if they are "guilty" of a hypocritical law

I can agree with that....the double standard is completely glaring in just about everything this government is doing now days! However, we are still a nation of laws, not men, so if they are guilty even of a hypocritical law they are still guilty. The tricky part is to fix the system and get rid of these crappy laws and/or go after the government when they break the same laws without consequence.