Oct
05

The Prods That Keep on Prodding

Posted by Clif Burns at 12:05 pm on October 5, 2006
Category: BIS

Cattle ProdEarlier we reported on the misfortunes of The Springer Magrath Company, a Nebraska-based agricultural supply house that had shipped cattle prods to South Africa without a license. Cattle prods are controlled because they can be used in human rights violations and require licenses from BIS for exports to all destinations. Criminal charges based on those exports were settled for an agreement by Springer Magrath to pay a fine of $50,000.

Of course, wherever you find the DOJ prosecuting an export violation for dual-use goods, BIS isn’t far behind. BIS rode into Nebraska and wanted to show Springer Magrath that it was rougher and tougher than the U.S. Attorney’s Office. After a little prodding from BIS, Springer Magrath agreed to pay a fine of $451,000 or face a denial of export privileges of one year. The Settlement Agreement also imposed a three-year denial of export privileges which would be suspended provided that Springer Magrath committed no further export violations for one year.

The charging letter details violations in addition to those alleged in the criminal proceeding. According to that letter, Springer Magrath shipped approximately $555,000 worth of cattle prods and related equipment to South Africa, Mexico, Ireland, Australia, Brazil and Germany, all countries where the prods were more likely to be used on cattle than on cattle-rustlers or other criminals.

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