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FBI Sting shakes 2010 SHOT Show!

Discussion in 'Shooting Related Threads' started by ontariogal, Jan 21, 2010.

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  1. ontariogal

    ontariogal Member

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    "Word of this week's FBI sting operation that has led to the arrests of 22 individuals from the firearms and weapons industry shook day two of the 2010 SHOT Show. Thirty months after beginning their investigation, the FBI closed the net on twenty one of their targets here at SHOT Show. The twenty-second was arrested in Miami.

    All were charged with attempting to bribe a foreign official in attempt to win a multimillion dollar contract to outfit a security force for the defense minister of an African country. There was no African country, but an undercover FBI agent posing as a foreign procurement agent.

    Rolled up in the largest foreign bribery investigation in the bureau's history was Amaro Goncalves, a sales executive for Smith & Wesson. As news of the arrests spread, it's safe to say there was more than a little consternation in a week that was supposed to be highlighted by new product introductions.

    "Through media reports today, we became aware of the Justice Department enforcement actions which were taken yesterday and which made reference to an employee of our company," the company said in a statement, "We have no information beyond what has been reported and are prepared to cooperate fully with law enforcement in their investigation into this matter."

    For two others charged in the investigation, former Secret Service Agent R. Patrick Caldwell, now CEO of Protective Products of America, inc. and former CEO Stephen Giordanella, the arrests were the end of a company cratering that began with a bankruptcy filing last week. Approval for the now shuttered company's acquisition by private investment capital firm Sun Capital Partners is now pending with the bankruptcy court.

    According to Justice Department officials, more than 250 officers and agents were involved in the 30-month investigation. When the indictments were handed down, agents executed 14 search warrants across the United States, with British police assisting in seven locations there.

    Three of the defendants in the case work for unnamed British companies; another for an Israeli company, with the remainder of the defendants either working privately or for companies in this country.

    In the sting operation, a meeting was arranged between sales representatives and undercover FBI agents. In order to win a contract, a twenty percent commission was to be paid- with half going to the official/FBI agent. According to the Justice Department, Goncalves provided a pair of quotes for a two-phased business transaction. The first was a "test sale" of twenty-five guns; a second for 1,800 pistols. In both cases, Goncalves provided two prices, with one inflated by the required twenty percent. Similar pricing was, according to our sources, provided for other products ranging from pistols and ammunition to tear gas and grenade launchers.

    The story is ongoing, and continues to develop."

    -story from Jim Shepherd, Outdoor Wire Digital Network
     
  2. grnberetcj

    grnberetcj Active Member

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    Good for the FBI and DOJ.

    Curt
     
  3. wanderer

    wanderer Member

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    Sounds like the same thing our congress has been doing for years, especially the last year. The D.O.J. had better start arresting congressmen. G.E.G.
     
  4. K-GUNS

    K-GUNS Member

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    Hummm, Charlie Wilsons war comes to mind ?

    Ever see that one ?
     
  5. fssberson

    fssberson Active Member

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    "According to Justice Department officials, more than 250 officers and agents were involved in the 30-month investigation"

    I wonder how much it cost to entrap these 22 guys in phony deals?
     
  6. short shucker

    short shucker TS Member

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    Isn't that about how Ruby Ridge got started?

    ss
     
  7. grnberetcj

    grnberetcj Active Member

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    Ruby Ridge? Isn't that where the wrong whackos got whacked but nobody really cared because they were whackos anyway?

    Or was that those fools in Whacko, Texas that didn't sign their ATF paperwork properly?

    Sometimes it's hard to keep abreast (so to speak) of things!!

    Don't ya just love the Laws of Natural Selection?

    Curt
     
  8. Guard Rail

    Guard Rail TS Member

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    The FBI is incapable of doing their real job, so they go after gun owners and manufacturers with stupid sting operations to try to trick them into breaking the law. This is just another example that new leadership is needed in Washington. Melvin Pervis they ain't.

    BK
     
  9. RobertT

    RobertT Well-Known Member

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    Before all the spin from this stops the ani-gunners will try to place the blame on our 2nd amendment rights.

    Robert
     
  10. Ken X

    Ken X TS Member

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    China, Russia and Israel will be glad to take the Arms business away from the U.S., and pay the required bribes that are common.
     
  11. ou.3200

    ou.3200 Well-Known Member

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    I think some are reading this wrong. The subjects were apparently attempting to rip off the "foreign government" by inflating the price of the arms, not paying a finder's fee. They submitted two prices, one inflated by the 20% which would likely be presented to the foreign government to pay the inflated price to cover the bribe. They had probably done it before which brought the attention of the Justice Department and resulted in the sting operation. Too little information exists here to start condemning one side or the other in this.
     
  12. noknock1

    noknock1 Active Member

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    ou.3200, you are correct, this thread is just being used as another excuse to bitch about federal law enforcement...
     
  13. sliverbulletexpress

    sliverbulletexpress TS Member

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    Read the actual facts from the Justice Dept. and then make an informed comment.

    http://www.justice.gov/opa/pr/2010/January/10-crm-048.html
     
  14. grnberetcj

    grnberetcj Active Member

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    'nuf said!!

    Curt


    [​IMG]
     
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