POTENTIAL VIOLATIONS OF US EXPORT LAWS AND REGULATIONS

C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 000560

SIPDIS

STATE FOR EB, NEA/ARP AND NEA/RA
COMMERCE 532 PASS TO OEE/INTEL DIV AND NYFO/T. WILLIAMS

NOFORN

E.O. 12958: DECL: 02/01/2013
TAGS: ETTC TC CA
SUBJECT: POTENTIAL VIOLATIONS OF US EXPORT LAWS AND REGULATIONS

1.(U) Classified by Charge D'Affaires Thomas Williams for reasons 1.5
(b) and (d).

2.(C) Summary: Commercial Officer Mary O'Brien received information
that U.S. company Criminal Research Products, Inc. has been willfully
evading US export regulations by exporting controlled items to Canada
for re-export to at least one destination where those items would
require a U.S. export license. The New York Field Office of the Office
of Export Enforcement has an open investigation on Criminal Research
Products, Inc. and the case agent assigned is Tom Williams in NYFO.
End summary.

3.(C/NF) On January 29, Comoff O'Brien met with Mohammed-Hani C. Ali,
Sales and Marketing Manager, Giftex Corp., Abu Dhabi, UAE. Mr. Ali had
contacted Comoff O'Brien to report that a shipment of fingerprint items
he had ordered from Criminal Research Products, Inc. (CRP),206-218 E.
Hector St., Conshohocken PA 19428, had been delayed. He reported that
he had attempted on many occasions to contact Dick Richards of CRP to
ascertain why the shipment had been delayed and received only one
response from Mr. Richards on 12/10/02.

4.(C/NF) Following is a report of Mr. Ali's comments and the facts as
revealed by documents in the files of Giftex.

5.(C/NF) Giftex has been purchasing products from CRP since at least

1997. Mr. Ali reported that CRP had never requested that he complete a
end-user form for purchases from CRP. Mr. Ali has completed such forms
for purchases from other companies in the U.S. and so was familiar with
the form. He said Mr. Richards had always assured him it was not
necessary. On 10/2/02, Giftex confirmed their order for $8,276.40 of
fingerprint equipment including 4 different kinds of fingerprint powder
and various lifters. On 10/29/02, Giftex requested that CRP report the
status of this order. On 11/4/02, Dick Richards replied that the order
could be supplied by December 10. Beginning 11/16/02, Giftex sent
numerous emails requesting a copy of the air waybill for the shipment o
the items.

6.(C/NF) Giftex received no response until 12/10/02 when
Dick Richards sent an email reading in part as follows:
"Reference is made to your various e-mails, faxes and
telephone calls regarding your order.

Due to certain government regulations and restrictions
we are having a difficult time in getting this order
released for shipment.

When we first quoted to you we did not anticipate any
restrictions or regulations would arise however it has,
henceforth the reason for the delay.

We are diligently working on this problem and we hope
to have it resolved soon."

This information may indicate that CRP's shipment was
detained in the U.S. by U.S. Customs for lack of an export
license but post has been unable to confirm this.

7.(C/NF) Beginning 12/12/02, Giftex continued to press CRP by e-mail,
fax and phone calls for information about when the shipment would
arrive. On or about 12/21/02, Giftex personnel had a telephone
conversation with Dick Richards of CRP. The content of this telephone
call was referred to in an email dated 12/21/02 from Dr. Fouad Aoudi of
Giftex which states:

"As we have no other choice but to wait. And based on
your confirmation and reconfirmation regarding
the supply of products through our several correspondences
we have confirmed to our client and gave him assurances
to supply on date. As we are under delayed penalty
which is equal to 25 percent of the order value up to
date. Also I would like to remind you that you
confirmed to us, there will be no problem to supply
transpassing [sic] the authorities from your side by
supplying from [sic] the goods from Canada."

Since that telephone call, Giftex has received no/no
communication from CRP regarding this order.

8.(C/NF) While reviewing documents related to previous
orders, Comoff O'Brien found an invoice dated 12/12/01
issued by CRP to Giftex for 5 Deluxe LP [Latent Print]
Technician Kits #27-275, valued at $460 each in 3 cartons
weighing 129 pounds. Comoff requested to see the inbound
documents for this shipment. Mr. Ali provided a copy of a
UPS waybill dated 12/19/01 from Invitro Sciences Inc., 166
Bridlewood Dr, Welland, Ontario, Canada 030602. The
description of goods states forensic fingerprint collection
kits and states the country of origin as the US. The
sender's name is P. Couture and the phone number is 905-714-

7540. The shipment consisted of 3 boxes weighing 129
pounds.

9.(C/NF) The shipment was accompanied by an invoice
dated 12/19/01 issued by Invitro Sciences to Giftex for 5
C27-275 Deluxe LP Fingerprint Kits at $460 each. The
invoice also indicates the shipment is in 3 cartons weighing
129 pounds and states the country of origin is the US.

10.(C/NF) Comoff O'Brien also reviewed the Airport Import
Bill issued by UAE customs for clearance. This document
dated 12/23/01 cleared 3 cartons of fingerprint kits valued
at $2300 addressed to Giftex. The Customs Bill showed the
country of origin as Canada.

11.(C/NF) Due to the sensitivity of the situation, Comoff
requested copies of documents for only the one shipment
transshipped through Canada, although there have obviously
been numerous shipments from CRP to Giftex since 1997.
Comoff suggests that CRP has been evading export license
requirements with some frequency.

12.(C/NF) Comoff O'Brien also reviewed documents relative
to the export of a stream light to Giftex in 2002. An email
from Dick Richards to Giftex states that the shipment could
be sent through (quote) our satellite office (unquote).
Based on the shipper's letter of instruction, this export
was exported under NLR. It is unclear whether this item
would require an export license; therefore copies of these
documents were not taken. Copies of all other documents will
be forwarded under separate cover.

13.(C/NF) Per a telephone conversation with NYFO, Comoff
O'Brien confirmed that the New York Field Office of the
Office of Export Enforcement has an open investigation of
criminal research products. NYFO has not however detained any
shipments by CRP. This information is provided to NYFO for necessary
action.

WILLIAMS