UpsideDownWorld.com takes a look at the gritty background of the Chiquita Banana payoff scandal.

Chiquita paid $1.7 million “… to a Columbian terrorist group responsible for some of the worst massacres in Colombia’s civil conflict and for a sizable percentage of the country’s cocaine exports…”

 

Posted on April 7th, 2007 by keeton
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The US corporate outsourcing orgy of shipping US technology and jobs to India may come into question after this bombshell reported by The Brisbane Times from Brisbane, Australia-

An Indian top executive at a US firm was charged Tuesday with shipping restricted weapons technology to the Indian government in a case that could put a pending bilateral nuclear deal under extra congressional scrutiny.

Parthasarathy Sudarshan, 46, CEO of Cirrus Electronics, was arraigned before a US magistrate judge on charges of smuggling technology linked to development of aircraft, missile and aerospace systems, government attorneys said.

He and his company’s international sales manager, Mythili Gopal, 36, were arrested on March 23 following joint investigations by the FBI and commerce, customs and immigration agencies. Gopal is to be officially charged on April 17.

Facing a 15-count indictment, they were charged with acting as “illegal agents of a foreign government” and violating the International Emergency Economic Powers Act and the Arms Export Control Act.

The indictment also charged other Cirrus employees AKN Prasad of Bangalore, India, and Sampath Sundar, 47, of Singapore, for their roles in the alleged offenses.

“These arrests put a network of technology smugglers out of business and demonstrate that we have no tolerance for weapons proliferators who illegally supply entities with weapons technology,” said Assistant Attorney General Wainstein.

According to the indictment, Sudarshan and Gopal had acquired electrical components that could have applications in missile guidance and firing systems for Indian state enterprises Vikram Sarabhai Space Center (VSSC) and Bharat Dynamics, Ltd. (BDL).

VSSC is an Indian Department of Space agency and produces space launch vehicles in activities that encompassed both civilian spacecraft and ballistic missiles, while BDL, an Indian Defense Ministry enterprise, is the prime production agency for missile weaponry systems.

The defendants purportedly also acquired US microprocessors for the Tejas, a fighter jet being developed by India’s Aeronautical Development Establishment. Washington restricts such exports to the three Indian government agencies.

“Networks that procure US technology whose export is restricted to combat proliferation and then seek to evade US export and licensing regulations undermine our national security,” said Jeffrey Taylor, US Attorney for the District of Columbia.

Cirrus allegedly routed the products through its Singapore office and then sent the packages on to India. “This case clearly demonstrates that the United States will aggressively investigate and prosecute those who illegally procure and export components for space launch vehicle and ballistic missile programs,” said Darryl Jackson, Assistant Secretary for Export Enforcement at the US Commerce Department.

“Even when they attempt to mask their illegal activities by diverting sensitive components through third countries,” he added.If convicted of the charges, Sudarshan could face up to 10 years in prison, while Gopal up to six years and Prasad and Sundar up to eight years. Indian government officials were linked to the alleged scam, according to the indictment.

Reports quoting the FBI said one of them was an official posted at the Indian embassy in the United States.  An official in US President George W. Bush’s administration said the case could undermine Congressional support for nuclear and space cooperation with India, the Washington Times reported Tuesday. But State Department spokesman Sean McCormack said although the case was a “serious matter,” he did not see “any connection” with a landmark bilateral civilian nuclear agreement that Bush signed into law in December.

Under the agreement, which is still being discussed for final US Congress approval, the United States would provide nuclear technology and fuel to India.

American officials have often cited India’s “clean” non-proliferation record to market the pact among legislators.

© 2007 AFP
 

Posted on April 7th, 2007 by keeton
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From the New York Sun: SANTA ANA, Calif. — A major Chinese espionage case set to open today is causing concern among attorneys for major defense contractors and exporters, who contend that one of the prosecution’s key legal arguments upsets a long-standing interpretation of export laws and could wreak havoc in industry and elsewhere.

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Cliff Burns at ExportBlog.com reports that the technical data that was allegedly exported in violation of regulations is actually in the public domain and is therefore not export-restricted technical data – but the prosecution is trying to suppress or distort that fact.

Will this case re-interpret the meaning of public domain?

Cliff writes:

“The prosecution’s approach to this argument was to ask the trial court through a in Limine to forbid Mak (the defendant) from introducing any new evidence that these papers were presented at public conferences, which is rather like trying to suppress evidence that the victim is still alive at a murder trial.“

“The government’s basis for this outrageous claim is, well, outrageous. The government asserts that DDTC has certified that the two papers were technical data within the rule and then claims that this certification is immune from any judicial review.”

Keep a jaundiced eye on this one, folks.

Posted on March 30th, 2007 by keeton
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Posted on March 29th, 2007 by keeton
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The ITT Corp. case is a consequence of the push-pull politics of industry vs. government in the movement to weaken export control in light of the huge pressure to globalize manufacturing.

More later on this. For now – here’s a sampling of stories and Blog reactions to the ITT Corp fine.

It looks like the PR blow back alone will be horrendous and exceed the $10 mil. PZ

The Story:

ITT Corp. has agreed to pay a $100 million penalty for illegally sending classified night-vision technology used in military operations to China and other countries, U.S. Attorney John Brownlee announced Tuesday.News coverage:
CNN
MSNBC.com
New York Times
Technocrat

From the Blogsphere:
Traitors? ITT Fined Up to 100 Million for illegal night vision exports by SoonerThoughtNice to see that not every defense contractor can f*** the troops and get away with it.. Nicer to see that this US Attorney didn’t have to “resign” before he got the conviction. DailyKos The Manufacturer of laser gear could be made cheaper overseas! AndRightlySoDefense Contractor Jeopardized U.S. Soldiers Truthdig.com

Posted on March 27th, 2007 by keeton
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Group Urges Bush to Stop Exports To Israel Under AECA Rule
The Center for Constitutional Rights (CCR) wants to deny weapons exports to Israel under the Arms Export Control Act that requires such weapons to be used for internal security programs and self defense purposes. The group sent a letter to President Bush and Secretary of State Condoleeza Rice urging them to “comply with their legal obligations” and cease all sales and deliveries of weapons to Israel. Read their story here.
ITAR TRIAL – Defense Asserts Released Tech Data Was Public Domain
In Baltimore -Haji Subandi, 69, a citizen of the Republic of Indonesia, pleaded guilty today to conspiracy to provide material support to a designated foreign terrorist organization, two counts of money laundering and attempted exportation of arms and munitions, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

“The disruption of the supply chain of this organization should reassure the public that the U.S. Government is committed to dismantling terrorist groups worldwide. The FBI will continue to work to prevent any person from using the United States to raise funds or procure arms to commit acts of terrorism.” Read the whole story on the US Immigration and Customs Enforcement website.

ITAR Called “A Pain In The Neck” for Small Space Companies

(Excerpts from Lawyers, insurance, and money: the business challenges of NewSpace by Jeff Foust in Space Review )

Some discussion about export compliance at Space Access Conference In Phoenix :

“It’s a monster pain in the neck,” said Randall Clague, whose duties at XCOR Aerospace include export control compliance. During a panel at the conference about export control, he described having to go around the company’s facility on a regular basis, looking for papers left out in workspaces that might have sensitive information and marking them with a stamp labeled “ITAR” as a reminder that the paper should be secured. “I feel like a babysitter. It’s just stupid.”

Kerry Scarlott, an attorney who specializes in export control law, said that, while difficult, ITAR is something that even small companies can deal with. “It’s a narrow portal, not a wall,” he said. “It’s not necessarily the biggest issue you’re facing.” However, even he acknowledged that ITAR is like “a sledgehammer hitting a fly” and that some type of reform was needed.

Conference panelists were skeptical that the Democratic Party majorities won’t loosen export regulations because they might appear to be weak on defense. “Unless we can find a way to get some Republicans to take the lead and inoculate Democrats from any flanking maneuvers by other Republicans, I don’t see anyone taking the lead and actually trying to fix this in a serious way,” said Jim Muncy of PoliSpace.

Scarlott was similarly pessimistic of the odds of near-term reform. “There are a lot of changes potentially afoot in ITAR. I emphasize ‘potentially’ because it’s unlikely significant changes will occur in the next couple of years.”
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Defense In Export Violation Trial Says Tech Data Was Public Domain
Notes from ExportBlog.com coverage of the trial of Chi Mak

A senior engineer for a company with numerous American Navy contracts, Chi Mak, 66, is charged with attempting to smuggle designs for quiet submarines to China and with acting as an unregistered agent of China in America. Cliff Burns at ExportLawBlog comments on the defense assertion that the tech data was public domain:

Mr. Kaye [Chi Mak’s defense attorney] said the government made little effort to safeguard the material. “As you can see in the pleadings … every document in this case was distributed at a public conference,” the attorney said.

Material in the public domain is usually exempt from export controls, but the government argued that an embargo imposed on China after the Tienanmen Square massacre in 1991 made it illegal to share even widely disseminated defense materials with Beijing.

Read the commentary on ExportLawBlog.com.

Posted on March 26th, 2007 by keeton
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SPYS AMONG US…
Source material I stumbled upon, The Office of National Counterintelligence Executive (ONCIX) report on “foreign economic collection and industrial espionage” includes info on who is doing what in violation to export regs. This report is issued every year in August. It’s worth reading.

CANADIANS DECRY DISCRIMINATION –
As it happens – the US International Traffic In Arms (ITAR) regulations conflict with Canadian discrimination laws and the there has been an outcry against restrictions continue in the name of what is called racial discrimination.

This article in the Public Service Alliance of Canada decries the ITAR policy as “racist” in the name of the United Nation’s International Day for the Elimination of Discrimination.
“Many of the Canadian companies in the aerospace industry affected by ITAR are recipients of federal contracts and bound by the Federal Contractors Program, which calls upon them to ensure that they comply with the federal Employment Equity Act.”
Read the article at the Public Service Alliance of Canada BC website.
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Posted on March 23rd, 2007 by keeton
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Posted on March 21st, 2007 by keeton
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Banana Company Guilty of Protection to Colombian Terrorists
Chiquita Brands International, Inc., Pleads Guilty to Making Payments to a Designated Terrorist Organization and Agrees To Pay a $25 Million Fine. Read about the whole rotten mess at the Bureau of Industry and Security website.

US backed Iraq Government Participates In Boycott of Israel
The US-backed Iraqi government is enforcing the Arab boycott of Israel with increasing frequency, The Jerusalem Post has learned, with the number of boycott-related incidents involving US firms operating in Iraq nearly quadrupling last year, according to official US statistics. Read the story on the Jerusalem Post website. 

UAE Moved From Naughty to Nice List

 (by Cliff Burns ExportLawBlog.com)According to an article by Guy Dinmore in today’s Financial Times, the UAE has escaped the ignominy of being listed on the Bureau of Industry and Security’s forthcoming list of countries “of diversionary concern.” When BIS issued an Advance Notice last month announcing its intent to fill in Country Group C of Supplement 1 to Part 740 with such countries of diversionary concern, we speculated that the UAE was BIS’s prime target. Read more at ExportLawBlog.com 

Posted on March 21st, 2007 by keeton
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Posted on March 20th, 2007 by keeton
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