Oct

17

Nice Work If You Can Get It


Posted by at 7:35 pm on October 17, 2011
Category: Arms ExportCriminal Penalties

eBayIf you are annoyed by co-workers who spend the day on eBay and still get paid, you may be even more annoyed to find out that the U.S. government actually pays federal agents on purpose to hang out on eBay and look for export violators. James Pendzich, who had only a junior college degree and no prior criminal history, was targeted by federal agents because his eBay page offered “worldwide” shipment of body armor. The ICE agents then set up a sting and had Pendzich ship protective inserts to undercover agents in Colombia.

Pendzich, of course, had little choice but to plead guilty to one count of violating the Arms Export Control Act (“AECA”). An article that appeared last week in the Knoxville News reported on the sentencing hearing at which the judge gave Pendzich a 46-month sentence for the illegal exports.

The applicable federal sentencing guideline for an AECA violation allows the judge to take into account national security considerations in determining the appropriate sentence. The defense argued that since the plates were shipped to federal agents there had been no adverse impact on national security. The prosecution reached deep into its bag of hypotheticals and argued:

Although not intended by the defendant, had he been successful, the bulletproof vests and body armor he attempted to export could possibly have ended up in the hands of narco-terrorists.

And if the plates had been made of highly-enriched uranium the narcos could have built and exploded a nuclear bomb. Unfortunately for Pendzich, the sentencing judge bought this coulda-shoulda-woulda line of argumentation and threw the book at him.

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Copyright © 2011 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)


2 Comments:


What is it with East Tennessee and these export control cases? This is both the same city, Knoxville, TN and one of the same prosecutors as the Roth case. Makes me wonder if its the same ICE agents too.

However, Pendzich plead guilty to one count and received a 46-month sentence, while Roth went to trial and was convicted of many various counts, and received a 48-month sentence.

Comment by Daniel Max Sherman on October 18th, 2011 @ 8:49 am

I wondered whether e-bay bears any liability here at all, even though they may not have been the exporter of record, aren’t they a broker of the transaction or at least a facilitator? (hosting the site upon which the sale occurred, and likely processing the payment.) How can e-bay offer bullet proof vests on its site and avoid criminal or at least civil penalties?

Comment by Jeremy M. on October 18th, 2011 @ 9:14 am