New York Exporter Pays $900,000
for Illegally Exporting
Handcuffs and Gas Masks

[Rothco / Morris Rothenberg and Sons Inc.]

On July 15, 1999, Morris Rothenberg and Sons, Inc., doing business as Rothco, a Smithtown, New York Company, plead guilty to charges that the company illegally exported and attempted to export handcuffs to the Republic of Croatia and gas masks to Japan. In connection with the plea, Rothco agreed to pay a criminal fine of $500,000 and prosecution costs in the amount of $200,000. In a related administrative action, the Department of Commerce ordered Rothco to pay a $200,000 civil penalty and denied its export privileges for one year to settle alleged violations of the EAR. The denial period was suspended and will be waived, provided that, during the period of suspension, Rothco committed no violation of the EAR. The investigation was conducted jointly by OEE's New York Field Office and the U.S. Customs Service.