Archive for March, 2011


Mar

7

DDTC Poised to Impose Export Ban on BAE


Posted by at 6:46 pm on March 7, 2011
Category: Arms ExportDDTC

BAEAlmost one year ago, on March 4, 2010, this blog reported that the Directorate of Defense Trade Controls (“DDTC”) had posted a website notice that all BAE export licenses were on temporary hold. This came several days after BAE had pleaded guilty to charges that it had paid bribes in violation of the Foreign Corrupt Practices Act and failed to report them as commissions in violation of the Arms Export Control Act. DDTC said the hold was to allow the agency to consider the impact of BAE’s guilty plea. And then, almost as quickly as the notice appeared — poof! — it was gone.

Well, the DDTC has apparently meditated on the fate of BAE long enough. An article in today’s Financial Times reported that BAE is bracing itself to have DDTC impose additional fines on the company and to suspend BAE’s privilege to export defense articles. Given BAE’s participation in such multilateral defense projects as the Joint Strike Fighter, it seems unlikely that the DDTC will impose a total export ban on BAE, but some version of an export ban is, apparently, both likely and imminent.

According to the Financial Times, the State Department was keeping mum on the matter but a BAE spokesperson had this to say: “Dialogue continues and is progressing with the Department of State in order to address its concerns regarding matters arising from the [Department of Justice] settlement.”

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

Mar

3

Have Guns, Will Travel


Posted by at 9:29 pm on March 3, 2011
Category: Arms ExportCriminal Penalties

Steven GreenooeUK citizen and former U.S. Marine Steven Greenoe (pictured right) pleaded guilty yesterday to one count of violating the Arms Export Control Act and one count of filing a false ATF form in connection with his unlicensed exports of more than 60 guns from the United States to the United Kingdom. Greenoe packed the weapons in suitcases that he took with him on ten flights from the United States.

The most interesting aspect of the case is how easily Greenoe was able to ship these guns in his luggage. The guns were disassembled and scattered throughout his suitcases. During a trip last May to Atlanta, where Greenoe was catching a connecting flight to Manchester, scanners detected the gun parts when Greenoe checked his luggage in Raleigh-Durham. Somehow or other he convinced TSA agents that he was a firearms salesman and that the parts were non-working “engineering samples.” He was then allowed to board his flight to Atlanta and then to continue on to Manchester with the guns in his luggage.

An investigation into a cache of guns recovered by British police ultimately led British authorities to Greenoe. Greenoe was arrested at the Raleigh airport in July after a tip-off from British police. Greenoe apparently told U.S. investigators that he was a security consultant and that these guns were for his employees working in pirate-infested waters off the coast of Somalia. Even were this colorful explanation true, it would not justify failing to obtain an export license for the guns.

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