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For
Immediate Release: November 30 , 2005 Contact - BIS Public Affairs 202-482-2721 |
U.S. Department of Justice
Assistant U.S. Attorney
LISA ROSE
CONTACT: 973-645-2869
FOR IMMEDIATE RELEASE:
Corporation, Vice President Plead Guilty to Selling Aircraft Parts to “Designated National” of Libya
Wednesday - November 30, 2005
NEWARK – A former vice president of a wholesale supplier of aircraft parts pleaded guilty today to one count of making false statements to the U.S. Department of Commerce in connection with the exportation of aircraft parts to a “Specially Designated National” of Libya, U.S. Attorney Christopher J. Christie announced.
Richard Greenleaf, 46, former vice president of NewCal Aviation, Inc. of Little Ferry, pleaded guilty before U.S. District Judge William J. Martini to one count of false statements to the Department of Commerce in connection with the exportation of aircraft parts to a Specially Designated National of Libya.
Greenleaf, of Emerson Borough, admitted that he caused aircraft parts to be shipped to Mediterranean Aviation Company, Ltd., a/k/a “Medavia” in Malta on approximately 30 separate occasions between April 2002 and April 2004. During the time in which the shipments were made, Medavia was designated by the Office of Foreign Assets Control (OFAC) as a Specially Designated National of Libya under the Libyan Sanctions Regulations. A Specially Designated National of Libya is either a company, bank or other entity located outside of Libya which OFAC had determined was owned or controlled by or acting directly or indirectly for the Government of Libya.
The aircraft parts in question included various non-military application parts used to retrofit and refurbish already existing DeHavilland aircraft.
Separately, NewCal pleaded guilty as a corporation to one count of falsifying and concealing a material fact in connection with the exportation of aircraft parts to a Specially Designated National of Libya. The company also pleaded guilty to one count of exportation of aircraft parts to a “Specially Designated National” without prior authorization from OFAC.
Under terms of the plea agreement, NewCal will be placed on a term of corporate probation for a period of two years and pay a fine of $200,000 at sentencing, which Judge Martini scheduled for March 7 for both Greenleaf and the company. Greenleaf faces a maximum sentence of five years in prison and a fine of $250,000.
NewCal Aviation, Inc. shipped the aircraft parts to Medavia without first obtaining the required authorization and export licenses from the Departments of Commerce and Department of Treasury, Office of Foreign Asset Control in violation of federal law. By doing so, Greenleaf willfully made or caused to be made false statements that the parts were exported in accordance with federal law.
According to Assistant U.S. Attorney Lisa Rose, Agents from the Department of Commerce and Department of Homeland Security, Immigration and Customs Enforcement, became interested in NewCal's activities because Commerce agents had specifically informed Greenleaf that the company was subject to certain regulations for the exportation of the type of aircraft parts NewCal sold.
During a meeting in April 2001, Commerce agents provided NewCal with a package that included informational literature on how to comply with the Department of Commerce’s regulations concerning the exportation of commodities. NewCal was also advised that the United States was aware that NewCal had exported numerous aircraft parts to Medavia. New Cal was also advised that the exportation of aircraft parts to Medavia violated federal law since Medavia was listed as a Specially Designated National by the Department of Treasury, Office of Foreign Asset Control.
Christie credited the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement's New York Field Office under the direction of Special Agent in Charge Sidney M. Simon and the Department of Homeland Security, Immigration and Customs Enforcement's Newark, New Jersey Office under the direction of Special Agent In Charge Kyle Hutchins for the year-long investigation of this matter.
Christie credited the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement's New York Field Office, under the direction of Special Agent in Charge Sidney M. Simon; and the Department of Homeland Security, Immigration and Customs Enforcement's Newark, New Jersey Office, under the direction of Special Agent In Charge Kyle Hutchins, for the investigation leading to the guilty pleas.
