U.S Company (Rigel Optics) and Its President Indicted on Import and Export Violations
The U.S federal court indictments of Rigel Optics (a former DeWitt company) and its president, Donald W. Hatch, have been indicted in federal court on 14 counts of improperly importing night vision optical equipment from Russia and Belarus and exporting those items to South Korea, Italy, Pakistan and Qatar. Stories like this should cause companies to think carefully about their import and export license/permit requirements and for management to make sure that all employees have a "compliance" mentality.
The indictment indicates that the company (1) illegally imported night vision optical equipment from Russia and Belarus for resale to its domestic and international customers in 2002 and 2003, and (2) improperly sold and exported to overseas destinations (South Korea, Italy, Pakistan and Qatar) image intensification and night sighting equipment, including night vision rifle scopes, second-generation night vision goggles and night vision monoculars.
These activities are alleged to violate (1) the Arms Export Control Act (licenses are required and those engaged in importing into the United States or exporting from the United States defense are required to register with the Department of State, and (2) the International Traffic in Arms Regulations (ITARs) (which requires that an exporter of articles on the U.S. Munitions List register with the Directorate of Defense Trade Controls and to obtain a validated export license).
The President of Rigel Optics is accused of knowingly and willfully making false, fraudulent and fictitious material statements and representations by filing a false Shipper's Export Declaration form,on which he stated a shipment of goods and commodities bound for Italy from the U.S. did not require a license from the U.S. Department of State. Many documents that are filed in connection with imports and exports of goods include certifications - It is very important for those who sign such forms to know what they are signing and that the factual statements in those forms are true. Presidents, CFOs, CEO, Sales Managers, Purchase managers and others can get into trouble for signing what is put before them without reading the forms. A signature is enough to put your name in front of a grand jury or prosecutors.
The President of Rigel Optics is accused of submitting false information of declared value and a false invoice that stated a shipment of goods and commodities bound for Doha, Qatar, from the U.S. had a declared value of $1,900, which officials say is significantly less than the true value of approximately $5,300. Again, it is very important to know that the information on a form is accurate.
The only way that a President, CFO, CEO, and others can protect themselves from such improper certifications and provision of false information is to have a compliance program and a top-down compliance mentality. A compliance audit can identify potential problems and the compliance program can develop processes to minimize errors.
For more information, please contact Cyndee Todgham Cherniak (416-307-4168), or Martin Masse (613-232-7171).
