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Date: 04 Jun 96 17:59:04 EDT
From: David Kennedy <76702.3557@CompuServe.COM>
To: Best of Security List <best-of-security@suburbia.net>
Subject: Why the US has ITAR
Message-ID: <960604215904_76702.3557_CHN58-1@CompuServe.COM>

Courtesy of Associated Press via CompuServe's Executive News Service:

			   Illegal Exporters

AP US & World  6/3/96 11:12 PM

  
>>   NEW YORK (AP) -- Two wholesalers were arrested Monday on
>>charges they illegally exported surplus military supplies,
>>including gas masks, to the Japanese cult accused in Tokyo's
>>1995 fatal gas attack. 
>>   Milton Somberg and his son, Howard -- president and vice
>>president Rothco, based in Smithtown -- allegedly made 160
>>illegal shipments between January 1993 and November 1995, said
>>U.S. Attorney Zachary Carter. 

o	Crates were mis-labeled:  Hand grenades were labeled paperweights,
"cattleprods" were stun guns and handcuffs were toys.  Other items include tear
gas, night vision devices and chemical protective suits.

>>   Days after the March 20, 1995 subway attack in Tokyo killed
>>12 people and injured 5,500 others, investigators learned that
>>the Aum Shinri Kyo cult had ordered 400 Israeli-made gas masks
>>from Rothco, Carter said. 

o	US Customs intercepted the shipment.

o	The investigation continues.

>>   Milton Somberg, 72, and his son Howard, 44, were charged
>>with violating export regulations for both the State Department
>>and Commerce Department. Each count carries a potential 10-year
>>prison term; the State Department rules also carry a possible
>>$1 million fine. 

o	Rothco had US$36M in sales last year.   

Dave Kennedy [CISSP] Information Security Analyst, National Computer Security
Assoc.

