News and Press Releases

Arlington Company Pleads Guilty to Illegally Attempting to Sell Military Equipment to Yemen, Chili, Libya and Vietnam

FOR IMMEDIATE RELEASE
January 7, 2010

(Alexandria, Va) - Taipan Enterprises Ltd., based in Arlington, Va., pled guilty today to illegally brokering the sale of arms to Yemen, Chile, Libya and Vietnam without registering and obtaining a license to sell items listed on the United States Munitions List.

                Neil H. MacBride, United States Attorney for the Eastern District of Virginia; John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement (ICE)’s Office of Investigations in Washington, D.C.; and Harold W. Geisel, Deputy Inspector General for the Department of State;  made the announcement after the plea was accepted by United States District Judge Liam O’Grady. Taipan Enterprises was immediately sentenced to pay a $15,000 fine.

                According to the statement of facts submitted with the plea agreement, the president and secretary of Taipan Enterprises, Ioannis Papathanassiou, admitted he contacted a number of defense manufacturers to broker United States Munition List items, which included combat armored vehicles, small arms components, night vision equipment, ground radars and other surveillance systems. Papathanassiou admitted that from at least June 2006 he attempted to broker the sale of this equipment to the Chilean military as well as end users in Libya, Vietnam and Yemen.

Papathanassiou was stopped by Customs and Border Protection (CBP) at Dulles International Airport on Sept. 1, 2007, where he falsely told the CBP agent he had been attempting to sell farm equipment to Yemen nationals while in Brazil. No Munitions List items had yet been exported as a result of these illegal brokering activities by the time federal law enforcement executed a search warrant on Sept. 4, 2009, at locations tied to the business.

                The Arms Export Control Act and the International Traffic in Arms Regulations require that anyone seeking to engage in the business of brokering United States Munitions List items must register and obtain a license. Representing Taipan Enterprises, Papathanassiou admitted to the court that the company had willfully failed to register or obtain a license as required.        
               
This case was investigated by special agents from the Department of State’s Office of the Inspector General and ICE’s Office of Investigations in Washington, D.C.  Assistant United States Attorney James P. Gillis prosecuted the case on behalf of the United States.

                A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.

 

 

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