Academi/Blackwater Charged and Enters Deferred Prosecution Agreement

RALEIGH, NC—U.S. Attorney Thomas G. Walker announced the unsealing of a bill of information and deferred prosecution agreement (DPA) involving Academi LLC, formerly known as Blackwater Worldwide and Xe Services, LLC (Academi/Blackwater). The bill of information and DPA were unsealed today in U.S. District Court in New Bern, North Carolina, during proceedings before the Honorable Louise W. Flanagan, U.S. District Judge. In the agreement, the company admits certain facts set forth in a bill of information and agrees to a $7.5 million fine. The agreement also acknowledges and references a $42 million settlement between the company and the Department of State as part of a settlement of violations of the Arms Export Control Act and the International Trafficking in Arms Regulations.

“Today’s proceedings conclude a lengthy and complex investigation into a company which has provided valuable services to the United States government, but which, at times, and in many ways, failed to comply with important laws and regulations concerning how we as a country interact with our international allies and adversaries,” said U.S. Attorney Walker. “Compliance with these laws is critical to the proper conduct of our defense efforts and to international diplomatic relations. This prosecution is an important step to ensuring that our corporate citizens comply with these rules in every circumstance.”

IRS-Criminal Investigation Special Agent in Charge Jeannine A. Hammett stated, “High-ranking corporate officials hold positions of trust not only in their companies but also in the eyes of the public. That trust is broken when such officials abuse their power and commit crimes to line their own pockets. An international fraud of this magnitude requires a coordinated effort among law enforcement agencies to stop those involved from profiting from their wrongdoing.”

“Compliance with the firearms laws of the United States in both domestic and international commerce is essential to maintaining order and accountability,” stated ATF Special Agent in Charge Wayne L. Dixie. “Whether it is an individual or a corporation, we will enforce the provisions of the federal gun laws equally. If violations are discovered, we will move to hold those responsible for the violations accountable for their actions.”

“Blackwater profited substantially from Department of Defense (DoD) contracts in support of overseas contingency operations over the past decade,” commented Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service (DCIS). “This investigation showed that no contractor is above the law and that all who do business with the DoD will be held accountable. With this agreement, Blackwater acknowledged their wrongdoing and took steps to remedy and mitigate the damage they caused to the United States and the public trust.”

“For an extended period of time, Academi/Blackwater operated in a manner which demonstrated systemic disregard for U.S. government laws and regulations. Today’s announcement should serve as a warning to others that allegations of wrongdoing will be aggressively investigated,” said Chris Briese, Special Agent in Charge of the Charlotte Division of the FBI.

“This company clearly violated U.S. laws by exporting sensitive technical data and unauthorized defense services to a host of countries around the world,” said Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Atlanta. “In doing so, company employees were frequently in possession of illegal firearms and aided other foreign nationals in the acquisition of illegal firearms. HSI is proud to have played a role in assisting the investigation to call this company to account for its actions.” Nicholson oversees HSI activities in Georgia and the Carolinas.

The Bill of Information

The bill of information is the result of a five-year, multi-agency federal investigation that covered an array of criminal allegations including export and International Emergency Economic Powers Act (IEEPA) allegations involving the manufacture and shipment of short-barreled rifles, fully automatic weapons, armored helicopters, armored personnel carriers, Foreign Corrupt Practices Act (FCPA) allegations in both Iraq and Sudan, unlicensed training of foreign nationals and firearms violations. As the result of that investigation, the government has brought 17 criminal charges against the company:

Counts one and two allege violations of IEEPA based upon Academi/Blackwater’s export of Iridium Satellite phones and Crypto Satellite phones to the Sudan in November 2005 without the authorization of the U.S. Secretary of the Treasury, as required by law.

Counts three through six allege violations of the Arms Export Control Act and the International Trafficking in Arms Regulations, based upon several proposed or actual transactions as follows:

■Between October 1, 2006 and November 30, 2006, Academi/Blackwater proposed to provide security services and a threat assessment, which included defense services as defined by U.S. law, to the government of the Sudan, without first having obtained a license from the U.S. Department of State;

■Between October 1, 2006 and June 30, 2008, Academi/Blackwater provided military training related to overseas military operations to military and law enforcement personnel from Canada without first having obtained a license from the U.S. Department of State;

■Between January 1, 2006 and December 30, 2008, Academi/Blackwater provided technical and engineering data relating to the construction of armored personnel carriers to personnel from Sweden and Denmark without authorization from the U.S. Department of State as required by law;

■Between October 2004 and March 2006, the company exported ammunition and body armor to Iraq and Afghanistan without first obtaining a license from the U.S. Department of State as required by law.

Counts seven through 12 allege violations of various federal firearms laws as the result of the company’s possession of the listed automatic weapons without registration or permission.

And finally, counts 13 through 17 allege that the company falsely represented to the Bureau of Alcohol, Tobacco, Firearms, and Explosives that five firearms were owned by certain individuals when the weapons had, in fact, been given as a gift to the King of Jordan and/or his traveling entourage in June 2005.

The Deferred Prosecution Agreement

The entry of the DPA permits the company to resolve the charges under conditions set forth in a contract with the government. Here, the Department of Justice has entered into a DPA with Academi/Blackwater, which acknowledges the company’s efforts to reform its conduct, provides for a period of supervision during which its activities are monitored, and which requires the payment of a $7.5 million fine. In the agreement the company admits the violations set forth in the bill of information, and the government acknowledges the company’s efforts to reform its conduct and to mitigate the damage caused by that conduct. The agreement also acknowledges and references a $42 million settlement between the company and the Department of State as part of a civil administrative settlement of violations of the Arms Export Control Act and the International Trafficking in Arms Regulations.

The investigation was conducted by a task force established by the U.S. Attorney’s Office for the Eastern District of North Carolina; the National Security Division of the Department of Justice; the FBI; the IRS; the ATF; the DCIS; and the ICE HSI.

Assistant U.S. Attorneys Robert J. Higdon Jr., John Bowler and Eric Goulian prosecuted the matter for the United States.

Washington Man to Serve 30 Months in Prison for Stalking Oklahoma Woman

OKLAHOMA CITY—Last Friday, Coy C. Coleman, 42, of Olympia, Washington, was sentenced by United States District Judge Robin J. Cauthron to serve 30 months in prison for interstate stalking, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.

On June 22, 2011, a federal grand jury charged Coleman with interstate stalking. According to the indictment, Coleman lived outside of Oklahoma and used the mail, a computer service, and a facility of interstate commerce to engage in a course of conduct that caused substantial emotional distress to two women in southwest Oklahoma.

Coleman pled guilty on December 1, 2011. At the plea hearing, he admitted that he was originally from Oklahoma, moved away from the state, but continued to make contact with one of the Oklahoma women. Coleman admitted that from April 2008 through September 2009, he sent the Oklahoma victim several postcards and letters from around the world, posted MySpace messages about her, and helped to place telephone calls to the victim. He admitted that his contacts with the Oklahoma woman were rude and derogatory and were meant to harass and frighten her.

At the sentencing hearing last Friday, Judge Cauthron ordered Coleman to serve 30 months in prison, followed by three years of supervised release.

This case was investigated by the Federal Bureau of Investigation and the U.S. Department of Defense Office of Inspector General-Defense Criminal Investigative Service. The case was prosecuted by Assistant U.S. Attorney Chris M. Stephens.

Former Army Corps of Engineers Employee Pleads Guilty to Accepting Bribes from Iraqi Contractors

WASHINGTON - A former employee of the U.S. Army Corps of Engineers stationed in Baghdad, Iraq, pleaded guilty today to conspiring to receive bribes from Iraqi contractors involved in the U.S.-funded reconstruction efforts, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Neil H. MacBride for the Eastern District of Virginia and Assistant Director in Charge James W. McJunkin of the FBI’s Washington Field Office.  

Thomas Aram Manok, 50, of Chantilly, Va., pleaded guilty before U.S. District Judge Anthony J. Trenga in the Eastern District of Virginia.   Sentencing has been scheduled for Dec. 9, 2011.   Manok faces a maximum penalty of five years in prison.  

According to court documents, Manok admitted to using his official position to conspire with Iraqi contractors to accept cash bribes in exchange for recommending that the Army Corps of Engineers approve contracts and other requests for payment submitted by the contractors to the U.S. government.   According to court documents, in March and April 2010, Manok agreed to receive a $10,000 payment from one such contractor who had been involved in constructing a kindergarten and girls’ school in the Abu Ghraib neighborhood of Baghdad and had sought Manok’s influence in having requests for payment approved by the Corps of Engineers.   According to court documents, Manok was to receive an additional bribe payment from the contractor once the contractor’s claim had been approved.   Manok also admitted that he intended to conceal the payments from authorities by transferring them, via associates, from Iraq to Armenia.  

This case was investigated by the FBI’s Washington Field Office, the Department of Defense Office of the Inspector General, the Army Criminal Investigation Command and the Defense Criminal Investigative Service, as participants in the International Contract Corruption Task Force.   The case is being prosecuted by Assistant U.S. Attorney Paul J. Nathanson of the Eastern District of Virginia and Trial Attorney Mary Ann McCarthy of the Criminal Division’s Fraud Section.

Noted Scientist Pleads Guilty to Attempted Espionage

Scientist Arrested in 2009 Following Undercover Operation

WASHINGTON - Stewart David Nozette, a scientist who once worked for the Department of Energy, the Department of Defense, the National Aeronautics and Space Administration and the White House’s National Space Council, pleaded guilty today to attempted espionage for providing classified information to a person he believed to be an Israeli intelligence officer.

The guilty plea, which took place this morning in the U.S. District Court for the District of Columbia, was announced by Lisa Monaco, Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office.

Nozette, 54, of Chevy Chase, Md., pleaded guilty to one count of attempted espionage.   Senior Judge Paul L. Friedman, who presided at the plea hearing, scheduled a status hearing for Nov. 15, 2011.   No sentencing date was set.  The plea agreement, which is subject to the judge’s approval, calls for an agreed-upon prison term of 13 years.

Nozette has been in custody since his arrest on Oct. 19, 2009.   FBI agents arrested him following an undercover operation in which he provided classified materials on three occasions, including one occasion that forms the basis for today’s guilty plea.   He was subsequently indicted by a federal grand jury.   The indictment does not allege that the government of Israel or anyone acting on its behalf committed any offense under U.S. laws in this case.

“ Stewart Nozette betrayed America’s trust by attempting to sell some of the nation’s most closely-guarded secrets for profit.   Today, he is being held accountable for his actions.    As this case demonstrates, we remain vigilant in protecting America’s secrets and in bringing to justice those who compromise them,” said Assistant Attorney General Monaco.        

“Stewart Nozette was once a trusted scientist who maintained high-level government security clearances and was frequently granted access to classified information relating to our national defense.   Today he is a disgraced criminal who was caught red-handed attempting to trade American secrets for personal profit.  He will now have the next 13 years behind bars to contemplate his betrayal,” said U.S. Attorney Machen.  “The FBI and its partners deserve tremendous credit for their outstanding work on this case.   This investigation and prosecution demonstrate our commitment to identifying and punishing those who would put our national security at risk.”

“Preventing the loss or compromise of high-technology and vital national security information is a top priority of the FBI,” said Assistant Director in Charge McJunkin.  “This case is a prime example of what happens when a person decides to sell our nation’s most valuable secrets for individual gain.”

Background

Nozette received a Ph.D. in Planetary Sciences from the Massachusetts Institute of Technology in 1983.   He has worked in various capacities on behalf of the U.S. government in the development of state-of-the-art programs in defense and space.   For example, Nozette worked at the White House on the National Space Council, Executive Office of the President, from approximately 1989 through 1990.   He also worked as a physicist for the U.S. Department of Energy’s Lawrence Livermore National Laboratory from approximately 1990 to 1999, where he designed highly advanced technology.

Among other things, Nozette assisted in the development of the Clementine bi-static radar experiment which purportedly discovered water ice on the south pole of the moon.   A version of the Clementine satellite currently hangs on display at the National Air and Space Museum of the Smithsonian Institution in Washington, D.C., and was later hailed as the vanguard of the new “faster, cheaper, better” revolution in space exploration.

Nozette was also the president, treasurer and director of the Alliance for Competitive Technology (ACT), a non-profit organization that he organized in March 1990.   Between January 2000 and February 2006, Nozette, through his company, ACT, entered into agreements with several government agencies to develop highly advanced technology.   Nozette performed some of this research and development at the U.S. Naval Research Laboratory in Washington, D.C., the Defense Advanced Research Projects Agency in Arlington, Va., and the National Aeronautics and Space Administration Goddard Space Flight Center in Greenbelt, Md.

According to a factual proffer in support of the guilty plea, from 1989 through 2006, Nozette held security clearances as high as TOP SECRET and had regular, frequent access to classified information and documents related to the national defense of the United States.    The factual proffer also provides details about the undercover operation that led to Nozette’s arrest.  

The Investigation

According to the factual proffer, on Feb. 16, 2007, law enforcement agents executed a search warrant at Nozette’s home in Maryland as part of a fraud investigation and found classified documents.   Further investigation into the classified documents revealed that in 2002, Nozette sent an e-mail threatening to take a classified program he was working on, “to [foreign country] or Israel and do it there selling internationally...” As a result of this and other information giving rise to suspicion of espionage, the FBI decided to conduct an undercover operation.

On Sept. 3, 2009, Nozette was contacted via telephone by an individual purporting to be an Israeli intelligence officer from the Mossad, but who was, in fact, an undercover employee of the FBI.   During that call, the defendant agreed to meet with the undercover employee that day on Connecticut Avenue N.W., in front of the Mayflower Hotel in downtown Washington, D.C.  

Later that day, Nozette met with the undercover employee and had lunch in the restaurant of the Mayflower Hotel.   After the undercover employee made it clear that he was a “Mossad” agent, Nozette stated, “Good.   Happy to be of assistance.”

After lunch in the hotel restaurant, Nozette and the undercover employee retired to a hotel suite to continue their discussion.   During the conversation, the defendant informed the undercover employee that he had clearances “all the way to Top Secret SCI, I had nuclear…,” that “anything that the U.S. has done in space I've seen,” and that he would provide classified information for money and a foreign passport to a country without extradition to the United States.

The defendant and the undercover employee met again on Sept. 4, 2009, at the Mayflower Hotel.   During this encounter, Nozette assured the undercover employee that, although he no longer had legal access to any classified information at a U.S. government facility, he could, nonetheless, recall the classified information to which he had been granted access.   The defendant said, “It’s in my” head, and pointed to his head.  

Undercover Operation Continues

On Sept. 10, 2009, FBI agents left a letter in the prearranged “dead drop” facility for the defendant.   In the letter, the FBI asked Nozette to answer a list of questions concerning classified U.S. satellite information.   FBI agents also provided signature cards, in the defendant’s true name and an alias, for Nozette to sign and asked the defendant to provide four passport sized photographs for the Israeli passport the defendant requested.   The FBI agents also left $2,000 cash for the defendant in the “dead drop” facility, which Nozette retrieved the same day, along with the questions and signature cards.

On Sept. 16, 2009, Nozette left a manila envelope in the “dead drop” facility in the District of Columbia. One of the “answers” provided by the defendant contained information classified as SECRET/SCI which related to the national defense, in that it directly concerned classified aspects and mission capabilities of a prototype overhead collection system and which disclosure would negate the ability to support military and intelligence operations.   In addition to disclosing SECRET/SCI information, Nozette offered to reveal additional classified information that directly concerned nuclear weaponry, military spacecraft or satellites, and other major weapons systems.  

On Sept. 17, 2009, FBI agents left a second communication in the “dead drop” facility for the defendant.   In the letter, the FBI asked Nozette to answer another list of questions concerning classified U.S. satellite information.   Nozette retrieved the questions from the “dead drop” facility later that same day.

On Oct. 1, 2009, Nozette left a manila envelope in the “dead drop” facility in the District of Columbia.   The FBI also left a cash payment of $9,000 in the “dead drop” facility.   Later that day, the FBI agents retrieved the sealed manila envelope left by the defendant.   Inside the envelope, FBI agents discovered the encrypted thumb drive that was provided to Nozette on Sept. 17, 2009, which included another set of “answers” from the defendant.   The “answers” contained information classified as TOP SECRET/SCI and other information classified as SECRET/SCI.   This classified information related to the national defense, in that it directly concerned satellites, early warning systems, means of defense or retaliation against large-scale attack, communications intelligence information, and major elements of defense strategy.   (This information is what formed the basis for the charge in today’s guilty plea.)

On Oct. 5, 2009, Nozette left a manila envelope in the “dead drop” facility in the District of Columbia.   Later that day, the FBI agents retrieved the sealed manila envelope left by the defendant.    Inside the envelope, FBI agents discovered the encrypted thumb drive that was provided to Nozette on Oct. 1, 2009, which included another set of “answers” from the defendant.   The “answers” contained information classified as TOP SECRET/SAR.   This classified information related to the national defense, in that it directly concerned capabilities of a U.S. military weapon system research and development effort.

Nozette and the undercover employee met again on Oct. 19, 2009, at the Mayflower Hotel.   During that meeting, the following exchanges took place:

NOZETTE:    “So, uh, I gave you even in this first run, some of the most classified information that there is. . . .   I’ve sort of crossed the Rubicon. . . .   Now the, uh, so I think when I said like fifty K, I think that was probably too low. . . .The cost to the U.S. Government was two hundred million. . . .   to develop it all.   Uh, and then that’s not including the launching of it. . .Uh, integrating the satellites. . . .   So if you say okay that probably brings it to almost a billion dollars. . .   So I tell ya at least two hundred million so I would say, you know, theoretically I should charge you certainly, you know, at most a one percent.”

Nozette was arrested soon after he made these statements.   He was subsequently indicted on four charges of attempted espionage.   Under the plea agreement, Nozette pleaded guilty to the third count of the indictment, arising out of his passing of TOP SECRET/SCI information on Oct. 1, 2009.

At the time of his arrest, Nozette was awaiting sentencing in another federal case. On Jan. 30, 2009, he pleaded guilty in the U.S. District Court for the District of Columbia to charges of conspiracy to defraud the U.S. government with respect to false claims and tax evasion in an amount up to $399,999.   In that case, Nozette agreed to pay restitution of $265,205 to the U.S. government.   Nozette is awaiting sentencing in the case.   Under terms of today’s plea, the sentence in the fraud case is to run concurrently with the sentence for attempted espionage.  

This investigation was conducted by the FBI’s Washington Field Office, with assistance from the Naval Criminal Investigative Service, Naval Audit Service, National Reconnaissance Office, Air Force Office of Special Investigations, Defense Computer Forensics Laboratory, Defense Advanced Research Projects Agency, Defense Criminal Investigative Service, Defense Contract Audit Agency, U.S. Army 902nd Military Intelligence Group, National Aeronautics and Space Administration (NASA) Office of Counterintelligence, NASA Office of Inspector General, Department of Energy , Internal Revenue Service (IRS) Criminal Investigation Division, IRS Tax Exempt & Government Entities group, U.S. Customs and Border Protection and U.S. Postal Inspection Service, as well as other partners in the U.S. intelligence community.

The prosecution is being handled by Trial Attorneys Deborah A. Curtis and Heather M. Schmidt, from the Counterespionage Section of the Justice Department’s National Security Division, and Assistant U.S. Attorney Anthony Asuncion, from the U.S. Attorney’s Office for the District of Columbia.

Millersville Man Sentenced for Posing as a Retired Army Special Forces Colonel

Lied for 12 Years About Special Forces and Terrorism Experience to Gain Teaching Employment; Also Fabricated a Story of His Daughter’s Kidnapping and Murder by Sex Traffickers

Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced William G. Hillar, age 66, of Millersville, Maryland, today to 21 months in prison followed by three years of supervised release for wire fraud in connection with a scheme to lie about his military experience and academic credentials in order to gain employment for teaching and training. Judge Quarles also ordered Hillar to pay restitution of $171,415 and perform 500 community hours at the Maryland State Veterans Cemeteries.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation; and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.

“William G. Hillar claimed that he had earned praise as a hero, but the truth is that he deserves condemnation as a liar,” said U.S. Attorney Rod J. Rosenstein. “He did not serve in the U.S. Army, did not receive military training in counter-terrorism and psychological warfare, and did not lose his daughter to sex traffickers.”

“Mr. Hillar’s fraudulent representations came to the FBI’s attention from concerned citizens, including former members of the Special Forces community. This investigation is an example of the difficulty the public faces trying to verify the accuracy of information on the Internet,” said FBI Special Agent in Charge Richard A. McFeely.

“The Defense Criminal Investigative Service is committed to supporting America’s warfighters and protecting the interest of the American taxpayers,” said Robert Craig, Special Agent in Charge for the DCIS Mid-Atlantic Field Office. “The service members that comprise the Department of Defense’s elite special warfare units have undergone years of specialized training and sacrifice to be called Special Forces. To misuse their titles for personal gain is unconscionable and discredits those that served and continue to serve the United States of America.”

According to Hillar’s plea agreement, from around 1998 to 2010, private and public sector organizations paid Hillar at least $171,415 for teaching, leading workshops, giving speeches and conducting training on counter terrorism, drugs trafficking, human trafficking and related topics. Hillar conducted these activities through a business named “Bill Hillar Training.” According to the government’s sentencing memorandum, most of Hillar’s victims were military, law enforcement or first responder organizations.

In order to secure employment with these organizations, Hillar falsely represented in resumes, biographical statements and on the Internet that: “William G. Hillar is a retired Colonel of the U.S. Army Special Forces. He has served in Asia, the Middle East, and Central and South America, where his diverse training and experiences included tactical counter-terrorism, explosive ordnance, emergency medicine and psychological warfare.” Hillar also represented that he received a Ph.D. from the University of Oregon.

Hillar never served in the U.S. Army or the Special Forces and never attained the rank of Colonel. Hillar never served in Asia, the Middle East and Central and South America, and did not acquire in those locales training and experiences in counter-terrorism, explosive ordnance, emergency medicine and psychological warfare. Hillar did serve in the U.S. Coast Guard Reserve as an enlisted sailor from 1962 to 1970, achieving the rate of Radarman, Petty Officer Third Class. According to the government’s sentencing memorandum, the organizations that Hillar purported to train exercise critical public safety and national security functions, and require ongoing training and education in order to respond to new and changing threats. Hillar, who was not qualified, displaced qualified teachers and trainers, thereby putting members of our military, law enforcement and first responders at risk.

Moreover, the government’s sentencing memorandum states that Hillar fabricated a gruesome tale that his own daughter had been kidnaped, forced into sex slavery, sodomized and tortured before being hacked to death with machetes and thrown into the sea. He further claimed that this experience and his life story was the basis for the 2008 film “Taken”. The significant press attention that film generated, in turn, generated free press for Hillar. Hillar admits that he fabricated the story about his daughter, who was alive and well.

United States Attorney Rod J. Rosenstein praised the FBI and the Defense Criminal Investigative Service for their work in the investigation, and thanked Assistant United States Attorney Leo Wise, who prosecuted the case.

Phoenix-area aviation company and owner charged with arms export violations

PHOENIX - A local aviation company and its chief executive officer have been charged with violating the Arms Export Control Act, following a joint investigation by the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI), the FBI and the Defense Criminal Investigation Service.

Floyd Stilwell, 84, and his company, Marsh Aviation, of Mesa, Ariz., are charged in an indictment unsealed October 27 with illegally exporting military aircraft engines from the United States to Venezuela for use by the Venezuelan Air Force. The T-76 engines are a designated item on the U.S. Munitions List, which under the Arms Export Control Act, makes it illegal for these engines to be exported without a license or written authorization from the Department of State. The T-76 aircraft engine was designed for the OV-10 Bronco Aircraft, a light armed reconnaissance aircraft specifically suited for counter-insurgency missions.

Federal agents executed a search warrant Feb. 5, 2008 at Marsh Aviation offices where they discovered two complete T-76 engines and enough component parts to construct 12 additional engines.

The indictment also alleges that without having obtained the necessary license or written authorization from the Department of State, Stilwell and Marsh Aviation Company furnished assistance to members of the Venezuelan Air Force, including testing, repair, maintenance, modification, operation, and using the T-76 military aircraft engine, and training in the assembly.

"Our investigation showed that the defendants in this case falsely claimed these engines were parts for civilian aircraft in an attempt to circumvent the law," said Matt Allen, special agent in charge of ICE HSI in Arizona. "The enforcement of arms export controls keeps America safe. One of HSI's top enforcement priorities is preventing military equipment and sensitive technology from falling into the hands of those who might seek to harm America or its allies."