Posted on 04/18/2015 4:33:37 AM PDT by markomalley
Four companies and five individuals have been accused of illegally exporting to Iran high-tech electronics that could be used for military weapons.
The 24-count federal indictment was unsealed Friday in Houston. The counts include conspiring to commit money laundering, money laundering and failure to file foreign bank and financial accountings.
Prosecutors say the companies and defendants are charged with violating U.S. law by sending certain microelectronics, power supplies and other items to Iran. The exports violate U.S. sanctions as part of anti-terrorism efforts.
"The prevention, investigation and prosecution of the illegal export of critical electronic system is one of the highest priorities of the Department of Justice," said U.S. Attorney Kenneth Magidson. "This indictment is evidence of our commitment to ensuring that our laws are enforced and our national security is protected."
The indictment names Houston-based Smart Power Systems Inc., plus companies operating in Taiwan, Turkey and Iran. Dozens of federal agents spent over nine hours inside the Smart Power Systems office building retrieving paperwork , boxes, bags and computers.
Some defendants are from Houston and Los Angeles, with arrests carried out in Texas and California.
A message left with Smart Power Systems for comment wasn't immediately returned Friday.
Isn’t treason a hanging offense?
Another law we don’t enforce.
I’m just shocked someone in the justice department is doing the right thing. Hang them and send their bodies to Iran. Vile traitors.
That’s what they should do but they’ll probably give a slap on the wrist. Deport the traitors to the countries they’re aiding & abetting.
I bought a couple of large UPS’s for a VAXcluster from Smart Power Systems back in the early 90’s. Good equipment.
No mention of names or political affiliation...
Fatwa & Furious program?
“Vile traitors.”
The ITAR (international trafficking in arms regulations)are horrifically complex and, consequently, legitimately subject to interpretation. For example, we were building a British Aerospace product built in Britain and sold to the US Navy as well into our device for sale to the Australian navy. Because the product was also used by the US Navy we had to obtain permission from the government to show it in our literature, discuss it via written or oral communications and we needed an export license. The issue took six months for a determination from our corporate lawyers and had not been resolved with the federal offices before I left the company. Had we not known that the US Navy used the same product we might not have known about the requirements and might have suffered the same fate as this company.
The company I worked at did 50% of its business overseas. A low level employee mentioned to somebody in the Navy that there was a meeting going on in our facility with the Korean Navy. The next day half a dozen FBI agents descended on our office and plant. They totally disrupted business for hours while frightened and embarrassed corporate officers scrambled to produce the required paperwork, all of which had been carefully signed and countersigned in advance. The FBI never checked with the other government offices before they swept in like commandos. Management called us all together and explained what had happened and told everybody that anything that happened in the plant regarding meetings between foreigners and foreign contracts was verboten for conversations with outsiders. (Actually, I thing that is potentially the most dangerous outcome from the FBI’s failure to investigate their own database before moving in.)
Dealing with ITAR is so slow and excruciating (and confusing) that it’s not a surprise if many companies simply pass on sales to foreign companies or entities. We’re not talking about military equipment here, it can be anything from microprocessors to sewage pumps (which might have dual use possibilities.)
The article was totally uninformative. So, let’s wait to pass judgment.
Thank you for enlightening me. It once again reminds me that many times things are not so cut and dry. Plus it sounds like you had a very interesting career.
” Plus it sounds like you had a very interesting career.”
Thank you. I wanted to do something significant for the men in the field, but I was stymied so frequently that looking back and knowing what was to come, I’d have become a mechanic and eventually started my own garage. Anyone who tries to improve military hardware or the procurement process gets ground into dust.
Is it because of the big money involved? That’s a shame. I’m am Very much for a strong military but I fear maybe 25 percent or more of the budget is wasted and our servicemen get the short end.
“Is it because of the big money involved? That’s a shame. I’m am Very much for a strong military but I fear maybe 25 percent or more of the budget is wasted and our servicemen get the short end.”
Every aspect of selling and maintaining military equipment is agenda driven politics and money. I could go on for 10 pages but I’ll settle for a few bullets. At the back of every contract are codicils that are there to direct money or power to a political constituent. You can’t use cadmium or chromium because they’re bad for the environment. A portion of the contract has to go to (minority) small businesses. Many of these companies are just shells who collect their fee. The contract may require diversity programs (for gays) or any number of other non-hardware related money-sinks. One contract directed that all aspects would be designed and built in Detroit (for unions.) (FCS. This requirement was on the solicitation’s cover sheet.)
You could more than adequately defend the nation, and fight two simultaneous wars with half the current budget...if you got the politics out of it.
Great insight into the military industrial complex you have. Cutting all government spending by just 10 percent would get rid of the deficits and I bet there is 40 percent waste across all of them. Where are the Hamiltons, Jeffersons and Washingtons of our time. Perhaps Cruz is it. Thanks for the interesting and informative read.
A number of Gov contracts are now for Disabled Vet owned businesses. Frankly, those contracts have increased and almost anyone who served can now get 10-20% service connected disability.
“A number of Gov contracts are now for Disabled Vet owned businesses.”
Every requirement in a contract increases cost and reduces efficiency. You might like that some of the money goes to disabled vets, but you would most likely not like the bargain that got that requirement there. Senator Snodgras: “You vote for my disabled vet bill and I’ll vote for your abortion bill.” It would be nice to get government out of direct control. The reason Kelly Johnson was able to develop the U2 and SR-71 in one year each was he got the military out of the development cycle. We’re heading that way as now the military is saying, “you bring us what you built and we’ll test it.” But, most companies can’t risk that much capital. Also, the big players are now run by lawyers who never take risks.
True, but; some requirements are only for the most brilliant minds like that of the late Von Braun. I know of a Vet who did serve in Vietnam albeit as a REMF, and; he is a for real Von Braun missile scientist type. His service connected disability is for diabetes. He was bound to get diabetes, but; it is SC at 20% due his being in RVN and it being type II.
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