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February 5, 2012
The US Department of Justice Case AgainstThe US Department of Justice Case AgainstDr. John Reece Roth: Impact & ImplicationsDr. John Reece Roth: Impact & Implications
Trade Compliance Solutions
Presented by: John P. PrieckoPresident and Managing PartnerTrade Compliance Solutions
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CASE SUMMARY/HISTORY
On Wednesday, September 3, 2008,a Federal Jury convicted retired University ofTennessee Professor Dr. J. Reece Roth, after a seven
The US Department of Justice CaseThe US Department of Justice Case
Against Dr. John Reece RothAgainst Dr. John Reece Roth
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,information relating to plasma technology designed tobe deployed on the wings of drones operatingas a weapons or surveillance systems.
[Reference: US Department of Justice (DOJ)Press Release (PR), 9/3/2008]
NOTE: Dr. Roth was sentenced July 1, 2009.He began serving it on January 18, 2012.
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Todays guilty verdict should serve as a warning toanyone who knowingly discloses restricted militarydata to foreign nationals. (Patrick Rowan, Assistant US
The US Department of Justice CaseThe US Department of Justice Case
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DOJ QUOTES OF NOTE
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ttorney or at ona ecur ty, ,
This verdict, by a jury of Dr. Roths peers, demonstrates thatour citizens and the United States will not tolerate suchinternational conduct to undermine the security and the economy
of our country. Our scientific and educationalcommunities must take precautions to insurethat technology and research are protected....
(Russ Dedrick, US Attorney, DOJ PR, 3/8/2008)
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INDICTMENT & CONVICTION(All Knowingly & Willfully)
One count of conspiracy with Atmospheric GlowTechnologies, Inc. (AGT) to unlawfully export in2005-06 fifteen defense articles/services to foreignnationals [i.e. Peoples Republic of China and Iran
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in violation of the Arms Export Control Act (AECA)] Fifteen counts of violating the AECA
One count of wire fraud related to defraudingthe University of Tennessee (UT) of honest
services by illegally exporting sensitivemilitary technology relating to thesubject US Air Force Contract
A-GTECH.COMA-GTECH.COM
(Reference, DOJ PR, 9/3/2008)
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MAXIMUM PUNISHMENT
On the conspiracy conviction:5 years in prison and a fine of $250,000
On the 15 AECA convictions:Ten years in prison for each offense and a
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criminal fine of $1,000,000 for each offense On the wire fraud conviction:
20 years in prison and a fine of $250,000
Mandatory Special Assessment:
$100 for each offense WORST CASE TOTAL: $15,501,700
in fines & 175 years in prison
(Reference, DOJ PR, 9/3/2008)
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SENTENCING(US Federal Sentencing Guidelines)
Some of what the Judge considered: Characteristics, circumstances, nature and seriousness of the case Knowing, willful, reckless intent/nature & obstruction of justice
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Self-reporting, cooperation and acceptance of responsibility Providing just punishment & affording adequate deterrence Protecting the public interest & national security Promoting respect & abiding by the law Aggravating & mitigating circumstances Prior history/misconduct Ability to pay restitution Collateral consequences Evidence
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ACTUAL PUNISHMENT
Four years in jail followed by2 years of Supervised Release
Thats 15 months less than the minimum
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DR.ROTH SENTENCED!
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and 30 months less than the minimum
sought by the US Government (USG).
Only monetary fine was the
$1,700 Special Assessmentwhich the judge waived.
(Reference, DOJ PR, 9/3/2008, other related Knoxville News Sentinel articles)
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ACTUAL PUNISHMENT
After a lengthy appeal effort, onOctober 3, 2011, the US Supreme Courtdenied Roths petition to hear his case.
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JOHN ROTHREGISTER NUMBER 32252074FCI ASHLAND
FEDERAL CORRECTIONAL INSTITUTIONPO BOX 6001
ASHLAND KY 41105
importance of export compliance toacademia and industry, especially in theresearch and development communities.It underscores the criminal consequences
of non-compliance and what happens tothose who knowingly and willfullyviolate export control laws.
(Bill Killian, US Attorney, DOJ PR, 2/1/2012)
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CO-CONSPIRATOR DANIEL MAX SHERMAN
Educated & Trained as a UT Physicist
Graduate Student under Dr. Roths supervision AGTs Director, Founder and the Program Manager
and Lead Scientist on the contract with Dr. Roth
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to commit the offenses specified in the Indictment
SENTENCE: Worst Case: 5 years in jail and a$250,000 fine - Actual: 14 months in prison
Prosecution sought 28 months due to Shermanscooperation as he provided extensive information anddocuments to investigators that led to Dr. Roths conviction.
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(Reference, the related Knoxville News Sentinel article, 8/10/2009,and Jeff Theodore, Assistant US Attorney, Knoxville TN)
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IMPLICATIONS/LESSONS LEARNED
The USG is always willing to take aggressive measuresto prevent unauthorized exports, particularly to certain countries.
Academic & research institutions as well as defensecontractors are NOT immune from such prosecutions.
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NOT everything thats perceived as fundamental researchqualifies as exempt from USG licensing requirements.
When working on USG or defense-related projects review policies,processes and procedures on research & collaborative projects to makesure they are thoroughly screened for export control issues before
being undertaken and on an ongoing bases to ensure compliance.
Providing export-controlled technology to a foreignnational /person by any means is an export.
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The US Department of Justice CaseThe US Department of Justice Case
Against Dr. John Reece RothAgainst Dr. John Reece Roth
Questions to Consider:
- Do the consequences and sentences fit the crimes?
WHAT DOES IT ALL MEAN?
??
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- as us ce serve o e appropr a e egree- Whats the impact on the trade compliance community?
- How many others are making similar transfers?
- Whos providing education and training in this arena?
- What message does the outcome send?
?? ??
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aueco.org
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Remember:
The AECA has a very long reach.
The US Department of Justice Case AgainstThe US Department of Justice Case AgainstDr. John Reece Roth: Impact & ImplicationsDr. John Reece Roth: Impact & Implications
Trade Compliance Solutions
JOHN P. PRIECKOPresident and Managing Partner
Trade Compliance Solutions9312 Manassas Drive, Manassas Park VA 20111-8203
Phone: (703) 368-0384Cell (703) 895-1110
Email: [email protected]
IN CONCLUSION - Questions, Comments, Other
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EOEO
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