Individuals will do jail time for violating export control laws and regulations. It is likely to occur in the event that an individual knowingly and willfully violates export controls. For example, in the news article below, a woman knowingly sold U.S. export-controlled ACOGs (Advanced Combat Optical Gunsights) to a U.S. individual with the understanding that the ACOGS were destined for Germany. The woman was sentenced to 6 months in jail followed by 3 years of supervised release. The U.S. Army employee from whom she purchased the ACOGs originally was sentenced to 2 years in prison. Through this series of transactions, it’s readily apparent that just because you sell to other U.S. individuals/companies doesn’t mean you’re “good-to-go”. If you know or suspect that the commodity will be exported by that individual or company, you have a responsibility to ensure it is exported legally. C2I can help with the entire end-to-end process of sales, including business development and growth/sales potential identification, closing deals, and identification of export considerations per transaction.
Texas Woman Admits Illegally Exporting
Advanced Combat Optical Gunsights, Sentenced To Prison
Thursday, June 19, 2014
Bureau of Industry and Security, Department of Commerce
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JANIECE MICHELLE HOUGH, 41, of Kempner, Texas, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of smuggling goods from the United States. The charge stems from HOUGH’s sale of two Advanced Combat Optical Gunsights (ACOGs) destined for Germany in violation of the International Trafficking in Arms Regulations.
Following her plea of guilty, Judge Underhill sentenced HOUGH to six months of imprisonment, followed by three years of supervised release, the first eight months of which she must serve in home confinement. HOUGH was also ordered to perform 100 hours of community service and to forfeit $198,054.
According to court documents and statements made in court, HOUGH worked for a government contractor and was based at Fort Hood in Texas. On the side, she operated an online business selling surplus military clothing and equipment on eBay. While working at Fort Hood, HOUGH purchased military equipment from U.S. Army personnel, including Michael Bartch, for re-sale online. In June 2010, HOUGH sold and shipped two ACOGs to an individual in Connecticut with the understanding that the AGOGs were destined for Germany.
HOUGH did not have a license from the U.S. State Department, which is required to export ACOGs and other items on the U.S. Munitions List.
Bartch, of Copperas Cove, Texas, was prosecuted by the U.S. Attorney’s Office for the Western District of Texas. On April 17, 2013, he was sentenced to 24 months of imprisonment.
In the District of Connecticut, this case was investigated by the Defense Criminal Investigative Service, Homeland Security Investigations, and the U.S. Department of Commerce, Bureau of Industry and Security, Boston Field Office. The case was prosecuted by Assistant U.S. Attorneys Edward Chang and Hal Chen.