U.S. agents raid outfitter of military, public safety
Foreign sales data possible target
By JIM JORDAN
Lexington (Ky.) Herald-Leader
A Lexington company known for supplying uniforms and protective equipment to police, paramedics and soldiers was raided yesterday by federal agents apparently seeking records of sales to foreign buyers.
Agents from several organizations arrived with search warrants at Galls Inc.'s two Lexington locations -- Palumbo Drive and Russell Cave Road -- about 9 a.m.
The agents, accompanied by Kentucky State Police, declined to say what they were seeking but were observed removing computer equipment and paper records.
The raid, however, drew intense public attention, with television reports throughout the day and inquiries and speculation by employees, passersby and workers at nearby businesses.
Galls' parent company, Aramark Corp., said in a statement that "Galls was contacted today by agents of the Department of Commerce ... in connection with its record-keeping and documentation of certain export sales."
Aramark spokeswoman Kristine Grow declined to say what type of equipment or buyer might have prompted the raid, but she said Galls was cooperating.
It is not likely to be clear what prompted the raid until the affidavit used to obtain the search warrant is made public. In Washington, D.C., Principal Assistant U.S. Attorney Channing Phillips said the affidavit will be released as soon as the search ends, possibly today.
The affidavit, which was presented to a federal judge to justify the search, should explain why the warrant was issued and what the agents were seeking. Any seized documents could be used to obtain indictments against Galls, its employees or others if wrongdoing is found.
Agents came from U.S. Immigration and Customs Enforcement in the Department of Homeland Security, the Commerce Department's Bureau of Industry and Security, and the Defense Department's Criminal Investigative Service, according to the Associated Press.
Several of the federal vehicles at the Palumbo Drive Galls had Virginia license plates.
No arrests or injuries were reported.
A similar raid at another Lexington company, Kelco Inc., produced indictments against Kelco, a sister company and three executives in 2002. All five were convicted, although the executives have appeals pending.
Galls sells many types of military and public service uniforms as well as medical equipment, body armor, night-vision devices and telescopic sights for military rifles.
Grow said Galls' four California stores, which are based in San Diego, were not raided yesterday.
Grow declined to disclose Galls' annual sales, but she said the total was only 2 percent of Aramark's $9.9 billion in sales for 2003. Sales to foreign buyers produce only 5 percent of Galls' revenues, she said.
Customers were not permitted to enter the Galls locations during yesterday's search. Callers to the company's mail-order number at midday yesterday heard a recording that said: "We are currently experiencing technical difficulties. We expect to resume our service in one hour. Please call us then."
Galls' operators were back on duty by late afternoon, indicating that the raid was over.
The company has 800 employees, Grow said, including 600 in Lexington, where it was founded. Galls was sold to Aramark in 1995.
Many Galls employees gathered outside their workplaces while the search went on inside. Several said they had not been told what was happening, but they declined to give reporters their names.
In addition to its retail outlets, Galls bills itself as the world's largest mail-order supplier of public safety equipment.
Although they have a common predecessor company, Galls is not connected to Phillip Gall's Outdoor and Ski in the Woodhill Shopping Center. That store is owned by Steven Gall.
http://www.tallahassee.com/mld/tallahassee/news/nation/9215412.htm
Well, good deal.
Thanks Donna.