I know this has been out for a day, but I got to admit I had no idea when I was trolling the booths at SHOT that this was going down. In fact, with so many attendees and so many vendors, it’s not surprising the rumors hadn’t even spread through the press by the end of the day.
According to FBI releases, the Justice Department arrested 22 execs from a variety of tactical and weapons products companies (both large and small) on Tuesday for allegedly agreeing to pay bribes to a fictional African government to outfit its presidential security detail. Twenty one of those execs were arrested Tuesday at SHOT in Vegas (guess they missed the Crye bash with Mini KISS)…
The FBI won’t say which companies the arrested execs work for, since the companies themselves are not alleged to have committed any crimes, a spokeswoman told Defense Tech/Military.com today. But she did point me to a list of the indictments where you can put two and two together and find out which companies are in the sting.
One of the alleged bribers is Patrick Caldwell (with alleged co-conspirator Stephen Giordanella), who was only 10 days ago named named CEO of Sunrise, Fla.-based Protective Products, a big time competitor to Point Blank for body armor contracts. PPA was the original winner of the Marine Corps MTV contract.
Caldwell’s indictment alleges he:
On or about May 14, 2009, at the Mandarin Oriental meeting in Miami, CALDWELL and GIORDANELLA agreed to proceed with the Country A deal, after being told that in order’ to win the Country A business, Company A would need to add a 20% “commission” to the invoices it sent to VA-J in connection with the Phase One and Phase Two deals, half of which would be paid to Country A’s Minister of Defense and half of which would be kicked back in the form of a commission split between Individual I and VA-I as a fee for their corrupt services. CALDWELL and GIORDANELLA further agreed to proceed with the Phase One deal knowing that the purpose of the Phase One deal was to show Country A’s Minister of Defense that the Minister of Defense would personally receive a 10% “commission” on the deal.
Whoa…And the rest of the alleged conspirators are accused of doing almost exactly the same thing.
In another indictment, Israel “Wayne” Weisler, the CEO of US Cavalry, a huge supplier of uniforms, armor and other tactical gear is accused of doing basically the same thing Caldwell and Giordanella are accused of. In meeting at the Ritz in DC back in May, FBI agents posing as officials from African country “A” convinced Weisler and his colleague, Michael Sacks, to pay 20 percent kickbacks on an upwards of $15 million deal.
The list is long, and through some Google-ing, I found what I think are a couple of associations (thanks to Laura Rozen over at Politico for doing some digging as well) but let’s “energize the grid” and see if our astute readers can dig up some more (I’m adding the companies that I think are associated with the accused in BOLD)…
Some of them are small fry, trying to horn in on some of the lucrative arms and gear business. But some like Protective Products, US Cav and Smith and Wesson whould know better.
- Daniel Alvirez, 32, and Lee Allen Tolleson, 25, the president and director of acquisitions and logistics at a company in Bull Shoals, Ark., that manufactures and sells law enforcement and military equipment (ALS Technologies)
- Helmie Ashiblie, 44, the vice president and founder of a company in Woodbridge, Va., that supplies tactical bags and other security-related articles for law enforcement agencies and governments worldwide; (i-SHOT, Inc.)
- Andrew Bigelow, 40, the managing partner and director of government programs for a Sarasota, Fla., company that sells machine guns, grenade launchers and other small arms and accessories; (GunSearch.com)
- R. Patrick Caldwell, 61, and Stephen Gerard Giordanella, 50, the current and former chief executive officers of a Sunrise, Fla., company that designs and manufactures concealable and tactical body armor; (Protective Products)
- Yochanan R. Cohen, aka Yochi Cohen, 47, the chief executive officer of a San Francisco company that manufactures security equipment, including body armor and ballistic plates; (HighCom Security)
- Haim Geri, 50, the president of a North Miami Beach, Fla., company that serves as a sales agent for companies in the law enforcement and military products industries; (HighTech USA)
- Amaro Goncalves, 49, the vice president of sales for a Springfield, Mass., company that designs and manufactures firearms, firearm safety/security products, rifles, firearms systems and accessories; (Smith and Wesson)
- John Gregory Godsey, aka Greg Godsey, 37, and Mark Frederick Morales, 37, the owner and agent of a Decatur, Ga., company that sells ammunition and other law enforcement and military equipment;
- Saul Mishkin, 38, the owner and chief executive officer of an Aventura, Fla., company that sells law enforcement and military equipment;
- John M. Mushriqui, 28, and Jeana Mushriqui, 30, the director of international development and general counsel/U.S. manager of an Upper Darby, Penn., company that manufactures and exports bulletproof vests and other law enforcement and military equipment; (Mushriqui Consulting L.L.C.)
- David R. Painter, 56, and Lee M. Wares, 43, the chairman and director of a United Kingdom company that markets armored vehicles;
- Pankesh Patel, 43, the managing director of a United Kingdom company that acts as sales agent for companies in the law enforcement and military products industries;
- Ofer Paz, 50, the president and chief executive officer of an Israeli company that acts as sales agent for companies in the law enforcement and military products industries;
- Jonathan M. Spiller, 58, the owner and president of a Ponte Vedra Beach, Fla., company that markets and sells law enforcement and military equipment;
- Israel Weisler, aka Wayne Weisler, 63, and Michael Sacks, 66, owners and co-chief executive officers of a Stearns, Ky., company that designs, manufactures and sells armor products, including body armor; (US Cavalry)
- John Benson Wier III, 46, the president of a St. Petersburg, Fla., company that sells tactical and ballistic equipment. (SRT Supply)
[UPDATE: At the request of DT reader and commenter “Anon” I have posted a link to the Foreign Corrupt Practices Act which the FBI alleges these suspects violated with their 20 percent kickback]
– Christian
{ 38 comments… read them below or add one }
It's a shame people at such high levels at important defense companies will stoop so low. Good job by the FBI. Selling any military equipment to unauthorized people is wrong, you do not know were it will end up. I mean in the wrong hands of either terrorists or drug smugglers. By having this sting it could be saving the lives of law enforcement anti-drug personnel all over the world. Message sent!!!!
Every time you buy or sell something illegal you are putting CASH into the hands of people who kill law enforcement around the world.
I wish this message got out to the American public who by their marijuana form their local dealer without realizing there's blood on every bud. Anything bought illegally has law enforcement blood on it. And now you have to start wondering if the cash is going to terrorists like Al-Qaeda too.
Yeah it is SO disappointing to think that American companies would do what is necessary to win overseas business that keeps americans employed. If it would keep 5 Americans working I would hope that they would pay ever 3rd world tinpot a 10% commission to buy from them. The competitors who are overseas and who’s employee base is overseas won’t think twice about paying that commission, it is merely a cost of doing business…
Shame on the FBI for wasting tax payer money on this when some jerk off that doesn’t even have a passport can get on a plane in Amsterdam and try to ignite his nuts to blow it up…
Shame, it just means that I will go outside the U.S. to places like the U.K. where bribery is De Facto legal, or at least it is when the Saudis are involved. Perhaps a foreign subsidiary with an appointed fallguy. this very simply pushed more customers away from the American defense base, and it is quite frankly the last industry that makes anything.
They should have be following the law. They knew it was wrong and they took the risk…now they must pay the price. Also for you tree huggers, the 2nd amendment isn't going any where, so deal with it. If the gov't went after the 1st you would be crying about that. You should support our rights because if they can change the 2nd they can change the rest then too.
They should have be following the law. They knew it was wrong and they took the risk…now they must pay the price. Also for you tree huggers, the 2nd amendment isn't going any where, so deal with it. If the gov't went after the 1st you would be crying about that. You should support our rights because if they can change the 2nd they can change the rest then too.
They should have be following the law. They knew it was wrong and they took the risk…now they must pay the price. Also for you hippies, the 2nd amendment isn't going any where, so deal with it. If the gov't went after the 1st you would be crying about that. You should support our rights because if they can change the 2nd they can change the rest then too.
We, The People, would NEVER repeal an unpopular amendment.
So whats wrong with giving a elected african president tactical arms for personal security?
Having worked quite a bit in Africa I would say you have to use the word "elected" very loosely.
Saul Mishkin ISDS Ltd
http://www.isds.co.il/esp/about_us.htm
Can someone point out a url that explains what law they were violating?
It's the Foreign Corrupt Practices Act, and if your company does ANY international business you're aware of it.
http://en.wikipedia.org/wiki/Foreign_Corrupt_Prac...
I can tell you that Wayne Weisler is truly a crook…If the Fed's would take a closer look at US Cavalry & Armorshield they would find several illegal deals to include shipping products like body armor that was sold to third world countries and possible terroists, with greased money. He only cares about making the money…well looks like it has finally came back to bit him in his rear. I just hope he gets some time for this…I also hope the Fed's dig a bit further into both US Cavalry & Armorshield, so they can stop these types of deals from happening again. In the mean time if you know a military person, tell them not to buy anything from US Cavalry…the whole group of execs are crooks, Wayne is the just the headmaster.
See im not saying your lying, i dont even buy any of there stuff but.
This is the problem with the internet its anonymous. Anyone could write that for any reason you could be a competitor or just one of those uber liberal socialist types. The problem is id never know so ill wait and see the verdict.
Wait if you want…but I can assure you I am no competitor…I used to do buisnes with Sacks and Weisler and they are the shadiest sales guys you will ever meet. I just hope the FED's throw the book at them…and they both get time.
"The FBI won’t say which companies the arrested execs work for, since the companies themselves are not alleged"
Yeah because execs pay bribes out of pocket and their companies know nothing …..
I worked for a oil company in West Africa that let you expense any bribes ( shake downs ) you had to pay to local officials.
Mr Mishkin'sm enterprise ISDS was a winner of a legal contract with the Ministry of Interior of Peru, few years ago. They offered the cheapeast price for armed forces trucks for transport troops ande they win over two more entreprises. When it comes to sign the contracta, the ministry said "No" with no legal reason, the deal was for 17 million soles. ISDS ask for a trial and they both went into a pre conciliation. How about this? peruvian bourocracy stinks.
Well here is the Brian's of the left wing White house. Screwing the wrong people.
Holder, at this rate, you better not stop for sundown.
Jonathan M. Spiller was the former CEO of Armor Holdings
Lee Wares and David Painter work for UK office of Cincinnati based O'Gara Group
There seem to be a great many Jewish names on this list of bribers.
There it is…….I figured you as one of those. How do you know they are Jewish and not German?
zandor u little nazi
No No.
This has nothing to do with american customer base abroad.
These are people that were aranging better that supposed to equipment to gun fags back home.
i bet..
This sounds like the commercial version of the Nigerian Scam…."I need 2000 Ameriken dollers to get money out of my grandfathers account, which has 49 milloons of Us Dollares. If you help me, I will give you half? YOu have bank account #, yes?"
Hardly EVER works, but there's always a few goobers that will go for it lol!!
it worked here in New Zealand. Took a retired lawyer down for over $500,000 US. Couldn't stop laughing for 15 minutes. I mean I couldn't think of a better 'victim' to fall for it. Greedy old FUK. What goes round comes round.
Forgive my ignorance, but what, exactly, is the law that was broken here? We have laws on the books to prohibit the bribing of officials in OTHER countries in order to secure contracts? Countries whose culture and traditions might make such bribes just a regular cost of doing business, instead of the scourge that we Americans take them to be? In a wonderful, idealistic world, all nations would look upon such bribes as wrong. Unfortunately, we live in the here and now….
Chris, we indeed have laws that prohibit bribing officials in OTHER countries. Many other countries have the same kinds of laws, as well, including most of the Europeans. There are many reasons for such laws, including the obvious ones, such as one US company handing out bribes will have a competitive advantage against other US companies that don't hand out bribes; companies that get comfortable bribing foreign officials tend to do the same to our officials; and the trifling fact that bribery is illegal in many of those countries, including those where it is looked upon as a common practice. We can hardly expect them to clean up their act when we're actively breaking their laws now, can we?
Not only was it a bribery issue, but we're talking about bribery in the pursuit of selling military hardware!
Chris, in a stretch I can see where you're going with "other cultures" and doing business, but we're talking about guns and body armor, not opening a McDonalds.
Hello, in 2006, Armor Holdings was given an "economic development" grant for 250K or more (language is legalistic and vague) by the Jacksonville Economic Development Commission, which is the agency for legalized corruption in Jacksonville, Florida. The Armor Holdings stock was too good to be true, and one imagines the city council members who passed this bill, their friends, and family owned lots of this stock. Check the city website, http://www.coj.net, and go to legislative bill search to verify this legislation. Under 2006, search for "armor" and you'll find it.
iF they really wanted bombs, bullets and guns, they should have hinted that they were a 3rd world muslim county that had lots of oil. It would have all been delivered for free, all on the pretext that someone there looked like that Yemeni airplane bomber.
Then all you needed to do to get the actual money was to claim that you were a corrupt politician hated by the population for taking bribes, and then you would be given Billions of $$$$$ after a rgigged election backed by the US Army and paid for by the US taxpayers using thier Chinese credit card.
Lee Wares and Painter were formerly the owners of SSS3 and sold out to the O'Gara Group now mostly owned by Wilfred (Bill) O’Gara based in Cincinnati.
Clients include US Army Corps of Engineers World Bank, Overseas Leasing Group and hundreds more in Afghanistan and Iraq. The are tied up with Russian owned Streit Manufacturing, armored vehicles, Dubai based with offices in Canada and S. Carolina.
More hookers and guest houses in Dubai than you can shake a stick at for US contracting officers. This is the tip of the iceberg!
Suprise surprise what do we see now, the Mushriqui Consulting L.L.C, like the O'Gara Group is also tied up with the Russian owned Streit Manufacturing armored vehicles, Dubai based with offices in Canada and S. Carolina.
The plot thickens!
I still can't see how this is not entrapment.
So, paying a "commission" to get a deal done is illegal, but hundreds of millions in political bribes to secure certain Senaors is just fine?
How about a certain Nebraskan refusing to support Barry's health care until he got paid(bought)?
This is really dirty pool. I'll be interested to hear what happens to these guys, AND to see what happens to the alleged "contract" and who gets it.
You know…. it is amazing what bravery is spawned from anonymity.
I am familiar with US Cavalry and Armorshield too…. and there is someone posting on several forums using names of former employees of that company that I know did not post anything. Sounds to me suspiciously like a disgruntled former employee fired for incompetence using other peoples names to anonymously bash the company that fired him / her. What do you think "Buchanan"?
Let the truth out in time. Unfortunately in this country the truth is that in the court of public opinion you are often considered "guilty until proven innocent"… particularly when anyone can malign a whole group of people to the world without having to stand up and own it! It is one thing to have an opinion… another completely to assault an individuals character to the world without the "nads" to back it up.
By giving bribes it perpetuates the corrupt system. If 3rd world countries want a product, let them buy it at the same price everyone else pays.
Once the system of bribery starts, then everyone has to do it. Can you imagine having to pay a bribe to the door-greeter at Walmart just to get in, then another bribe to the cashier, etc.?
This isn't entrapment, is an offer. One that should have been refused. "Sorry, we don't deal in paying bribes." Then the people could have walked away.
If someone offers you drugs, and you accept, is that entrapment?
"Do the right thing every time." – U.S. Navy Capt.
I must agree with Navy Capt, This was obviously not an entrapment, just some idiot execs trying to make money by any means necessary. I also found the comments by weasel very funny…apparently this person has the Nads to talk about someone posting anounmesley yet I doubt weasel hunter is real name…plus they probably work for these companies, only someone working there would defend this type of behavior.
Personally I like LA Police Gear…not had any good experience elsewhere …I say treat them execs like traitors…we cannot trust these type of people. Who knows they may sell to terrorist next.
FBI needs to stay away from and ignore the UN if it is their intent to clean up this activity. these representatives should hire murthas lawyer, he seemed to understand these activities back in the 80's. i can't see it being fictatious country, but made up agent for a real country or "freedom fighters". yes they should do the right thing all the time, but in reality they should stay home as this is how the rest of the world operates. i consider this an attack on 2nd amendment supply siders, might not seem like it but selective enforcement, go find the real criminals in washington dc to show me how loyal they are to the law.