BIS Settles Major Enforcement Case Against Polygraph Manufacturer for Unlicensed Exports
The Commerce Department’s Bureau of Industry and Security (BIS) today announced that Stoelting Company of Wood Dale, Illinois, agreed to a $44,000 civil penalty and a five-year denial of export privileges to settle charges that it exported polygraph machines to the People’s Republic of China (PRC) in violation of the Export Administration Regulations. Stoelting’s President, LaVern Miller, also agreed to pay a $44,000 civil penalty to settle related charges. The five-year denial of export privileges is suspended provided Stoelting does not violate the EAR during that period.
Founded in 1886, Stoelting Co., is a producer of physiological measurement instruments and psychological test materials for over a century. Stoelting is credited with having invented the first modern polygraph in 1935.
In its charging letter, BIS alleged that between January 1998 and February 1999, Stoelting, under the direction of Miller, knowingly exported and attempted to export polygraph equipment without the required export licenses from the Department of Commerce. The polygraph equipment was diverted through Italy and Taiwan to the PRC. The Commerce Department controls the export of polygraph equipment to the PRC for crime control reasons.
In related criminal cases, Miller and Stoelting have also pled guilty in the Northern District of Illinois to violating the International Emergency Economic Powers Act (IEEPA). Sentencing for the criminal charges is scheduled for September 2004.
Stoelting has apparently gotten the message, as the company's Web site now states that:
"Stoelting will not knowingly allow anyone to ship polygraph equipment to any restricted country without the prior receipt of a proper U.S. Department of Commerce export license. Further, Stoelting personnel will report to the U.S. Department of Commerce Enforcement Division any and all individuals or agencies who may attempt to do so."
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