New Hampshire Corporation Sentenced On Violation Of Arms Export Control Act
CONCORD, NEW HAMPSHIRE – Netria Corporation, of 37 Industrial Drive, Exeter, NH, was sentenced in United States District Court for the District of New Hampshire for violating the Arms Export Control Act (AECA). On May 14, 2014, charges were filed alleging that Netria exported aircraft parts to Malaysia, specifically two Lockheed Martin Fuel Quantity Indicators, without having first obtained a license from the United States Department of State, as required by federal law, announced United States Attorney John P. Kacavas.
Under the (AECA), the President is authorized to control the export of “defense articles.” Items so designated constitute the United States Munitions List (USML). If an article is covered by the U.S. Munitions List, the U.S. Department of State, Directorate of Defense Trade Controls (DDTC) regulates its export. The DDTC develops and updates the regulations, known as the International Traffic in Arms Regulations, or ITAR.
Under the provisions of the AECA, individuals or organizations must register with the DDTC, and apply for an export license to export defense articles. It is a felony to willfully violate the provisions of the AECA. This includes the requirement that those in the business of exporting defense articles, or in the business of brokering activities with respect to exporting defense articles, must register and obtain a license before exporting defense articles.
As a result of an inquiry by Netria to a Department of Homeland Security undercover storefront, agents from Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HIS) and the Defense Criminal Investigative Service (DCIS) in San Diego, CA began an investigation of Netria. Working with ICE agents in New Hampshire, evidence established that Netria had exported aircraft parts listed on the USML without having obtained a license from the U.S. State Department, in violation of the AECA. Court documents in this case disclose that between July 2007 and October 2009, Netria brokered the sale and export of approximately $2 million worth of aerospace parts, and included in those exports, between September 2008 and April 2009, Netria exported “defense articles,” specifically nine shipments of C-130 parts without a requisite State Department License.
“We will hold to account those who circumvent requirements designed to protect our national security,” said HSI Boston Special Agent in Charge Bruce Foucart. “I would like to congratulate the special agents of HSI and our partners with the Defense Criminal Investigative Service, who work tirelessly every day to pursue those who flout our export control laws and attempt to supply anyone with technology that could threaten our national security.”
On September 30, 2014, Netria pled guilty to the federal charges and admitted that it had exported two Lockheed Martin Fuel Quantity Indicators, which were “defense articles,” without having first obtained a license from the United States Department of State, as required by federal law. United States District Court Judge Landya McCafferty sentenced Netria to one year of probation and ordered the forfeiture of $12,560. This case was investigated by Immigration and Customs Enforcement, Homeland Security Investigations and Defense Criminal Investigative Service, and was prosecuted by Assistant U.S. Attorney Arnold H. Huftalen and Julie Edelstein of the United States Department of Justice, Counterespionage Section, National Security Division.