F.B.I. Arrests S&W Executive in SHOT Show Bribery Set Up!

I say this is a set up because Amaro Goncalves of Smith and Wesson and 20 other people were the target of a sting that almost any multinational corporation would have fallen into when doing business overseas. The question I have is why legal arms manufacturers are being targeted by the F.B.I. while Militant Islam is increasing it’s activity here and abroad?

From Reuters:

WASHINGTON, Jan 19 (Reuters) – An executive of Smith & Wesson (SWHC.O) and 21 others have been charged with violating U.S. bribery laws after an undercover sting in which federal agents posed as arms-buying representatives of an African defense minister.

The defendants, including a senior Smith & Wesson sales official Amaro Goncalves, were accused of violating the Foreign Corrupt Practices Act, or FCPA, and conspiracy to commit money laundering tied to the sale of guns, body armor and other law enforcement equipment.

The FCPA prohibits the payment of bribes to foreign officials in order to secure business contracts.


Among those charged was the chief executive of Protective Products of America Inc (PPA.TO), R. Patrick Caldwell, who previously worked for the U.S. Secret Service for 27 years and was in charge of the division for the vice president’s protection. A spokesman for the service declined to say when Caldwell left the agency.

An attempt to reach Protective Products was not successful. Protective Products filed for bankruptcy protection last week and sought approval to be acquired by an affiliate of the private investment firm Sun Capital Partners Inc.


As part of the FBI sting operation, an unidentified business associate who was a former executive for an arms manufacturer arranged a meeting between the arms sales representatives and undercover FBI agents who posed as representatives of an African country’s minister of defense.

The agents told the sales representatives that in order to win a contract, they had to add a 20 percent “commission” to price quotes, half of which would go to the purported minister of defense and the rest would be split between the others.

In the case of the Smith & Wesson executive, Goncalves gave price quotes for two sales, a small one of 25 guns and a larger one with 1,800 pistols. He gave two price quotes for the transactions, including one that had its price inflated by 20 percent, the Justice Department said.

The two-and-a-half-year-long investigation involved 250 FBI agents, according to Mark Mendelsohn, deputy chief of the Justice Department’s fraud division. In connection with the indictments, 150 agents executed 14 search warrants across the country and British police executed another seven, Justice Department officials said.

Three of the defendants worked for unnamed British companies; another worked for an unnamed Israeli company, according to the indictments. The defendants sought to obtain contracts for the sale of products ranging from grenade and tear gas launchers to pistols, ammunition and explosive detection kits.

Breuer said the investigation was the largest action ever undertaken by the Justice Department against individuals in an FCPA case. He also said it marked the department’s first large-scale use of undercover techniques in an FCPA investigation.

That’s a lot of resources to trip up an American gun maker, some military equipment manufacturers from England and a Israeli arms company. Odd that no communist nations seem to be involved. Even more odd is that these companies will be supplying the enemies of Communists and Islamists in a less robust fashion now that they’ve been hauled into court when Isamofascism is gaining ground in several countries. Just an observation.

The American government gives billions in “aid” to oil rich countries like Saudi Arabia, aid they don’t need but is in fact a Jizya meant to make it easier for American interest in that part of the world. When dealing with third world nations corruption is part of the price of doing business. Everyone knows that but the government wasted the time of at least 250 F.B.I. agents while Muslim terrorists were sneaking underwear filled with explosives onto airplanes.

Are these the priorities we want the feds to have?

h/t The Firearm Blog

11 thoughts on “F.B.I. Arrests S&W Executive in SHOT Show Bribery Set Up!

  1. Is that seriously your comment to this operation?
    You’re saying that EVERY multinational corporation (I have worked for a few) has bribed international officials at some point? What information or data do you have to support such a preposterous accusation?
    And what does terrorism have to do with the FBI going after a federal crime within our Homeland? Are you saying that – because our War on Terror – people should be allowed to do whatever they want, within the confine our domestic commerce?
    Listen: I am for the Second Amendment as much as the next guy, but that does not make Smith & Wesson, or any other firearms manufacturer, untouchable. This is not a conspiracy, as you’re alluding to. This is the Federal Goverment bringing 36 months of investigation to complete fruition.
    Bribes are bribes. They are not legal within our judicial system.
    I agree with you about the fact that the Dec. 25 failed attempted is a pathetic commentary of how ill-equipped we still are, 8 years after 9/11, to prevent even the most blatant of aggressions. But I don’t think that the Federal Agents after this bribary case (who specialize in white collar crimes) are resources taken away from figthing terrorism (or the phantomatic religious war you are convinced we’re fighting, according to your post).

  2. The U.S. government itself “bribes” foriegn officials with “aid” money that doesn’t go to aid programs. Americans traveling into Mexico with firearms bribe cops to stay out of trouble. Charities in the Third World use their resources to keep corrupt officials off their back. The point is that this is how third world countries operate.

    And clearly you’re some liberal moby if you claim we’re in a “phantomatic” (I would assume you mean phantasmal) war that Militant Islam is waging against the world. Tell the Black Animists and Christians in the Sudan the Jihad is an illusion. Tell the Israelis who suffer rocket attacks daily that there is no war. Tell the Swedish women that the rape wave they suffered, where 80% of the rapes were Muslim on non-Muslim, was an illusion. Only the most naive or politically invested fool would believe Wahhabist aggression in particular and Islamic Imperialism in general is an illusion.

    The government has limited resources, less now that tax revenues are declining. Setting up some guy from S&W does nothing to fulfill their Constitutional duty to protect the American people.

  3. It was an over-zealous sales guy. The fact that the FBI spent so many manhours is insane!

    And two price quotes? For large purchases companies usually provide discounts, perhaps as much as 20% The quotes were probably retail price, and the other with the discount. If a customer wants to buy stuff at full price, he can and no one will stop him.

    On the other hand, if he was busted agreeing to a conspiracy to pricefix and engage in bribery, then case closed. See if S&W provides a lawyer for the guy. If not, they probably think he’s guilty too.

  4. See if they provide a lawyer? There will be a team of lawyers trying to minimize the convictions.

    I really don’t feel that this is such a horrible crime. From S+Ws point of view, they are changing the price quote on paper, but not changing the price they are asking. They are complying with their clients requests and they are not themselves bribing anyone. They are agreeing to give an inflated invoice, because as they understood it was the way business worked there, that they had to pretend to bill for more to simply receive their regular price, and to look the other way while (what they must have assumed was) an already corrupt government continued to embezzle from it’s country’s coffers.

    there are so many worse crimes that could have been committed, for example giving a bribe to a warlord to ensure that they outfitted their soldiers with smith and wesson to continue their ethnic cleansing. It sounds like they just fudged the numbers a little at their employers request to seal the deal.

  5. Dear Rob Taylor;

    To say that the “bribe” a charitable organization’s use of payouts to remain alive is in any way similar to a sales executive trying to line the pockets of a civil servants for the sole objective of getting a full bonus at the end of the year or to increase shareholders’ values by 2 cents is, in my humble opinion, a slap in the face to anyone who works in charitable capacities. The phantomatic adjective (it is a real world, yes. Phantasmal is a synonim) is referred to the religious aspect of the war. Religious wars were waged in the Middle Ages. Today, this war is not religious. By logic, if you’re telling me that this war is against muslim, then all muslims are terrorists, or enemies. Do you really believe that? Do you really think that it is the totality or even the “vast” majority of worldwide muslims who want to see you and me dead? If you really believe that, I would not want to be you… always looking behind your back, making sure there are no muslims around.

    As far as your making any disagreement a political divide, I am a registered republican, owner of a large number of firearms, proud supporter of the NRA and of my Constitutionally-guaranteed Second Amendment rights. I spent most of my time working in senior capacity for a firearms manufacturer.

    That does not make me blind or unopinionated.

    I would also check my facts, before stating that the FBI has no resources, or less than it had during the dot-com boom. Your argument is based on convictions to which you are entitled, but that become weak and paper-thin, when you check the facts that should substantiate them.

    You jump to conclusion thinking that everyone bribes, that all muslims are at war with us (the West, the US, or whatever it might be), that the FBI is under a financial crunch that should cause it to redirect agents specializing in domestic financial felony to international armed conflicts.

    You even jumped to conclusion in assuming my political affiliation.

    I love my Second Amendment, but you are making full use of your First one!

  6. Asinine.

    A) Charities are allowed to operate in the real world in Third World countries but companies aren’t? Either make it illegal to do business there or not, but this is a sting designed to entrap arms companies which will never be used to entrap energy companies.

    B) You think that Jihadism isn’t religious? Explain the jihad against Buddhists (including the Dalai Lama) explain the slave trade in the Sudan which targets only non-Muslims. Burying your head in the sand an pretending that Wahhabism and related schools of jurisprudence are not at war with the West is ridiculous. Even non-Wahhabi Muslims have said what I have said. I support groups like Muslims against Sharia and they will tell you that this is a war that is driven by Islamic Imperialism. To deny this is to purposefully deny Islamic history and current events. And yes M.R. the vast majority of the world’s Muslims would demand that you convert, accept Dhimmi status or die. To prove me wrong find one Muslim moajority country where non-Muslims are not treated that way. Why do you think so many “moderate” Muslims prefer living in the West? What are they fleeing from?

    C) Oh you’re full of gun authority “M.R.” because you say so. Well I’m the king of Siam. Anonymous trolls can claim anything they want, you sound suspiciously like one of the Code Pink gals to me. But I’ll take you at your word that you’re a N.R.A. member and gun manufacturer life long Republican who doesn’t believe in Jihadism and thinks the federal government has unlimited resources.

    D) Speaking of which the government has no resources because we’re bankrupt. Federal LE shares what limited money there is. The Border patrol is underfunded, as is the D.H.S. and T.S.A. don’t you think they should be given more money and the FBI can pull off less stings at gun shows? You do know several states are already unable to pay their obligations right?

    E) You’re either naive or a moby (or both) but you’re really saying we have no money problems, Islamism isn’t a world wide problem and terrorism isn’t more a threat than bribing people? What are you smoking?

  7. I am not sure about the smith & wesson deal but I can assure you Wayne Weilser with US Cavalry/Armorshield is a crook, BIG ONE! In fact he has been bribing and selling products to include Body Armor to whomever is willing to pay (to include possible terrorists), even without the proper licenses. I work there, so trust me…I am just waiting for the FED’s to show up and start going through all the files & documents. I obviously need to find another job quick…tragic to say the least…I just wish I would have left sooner.

  8. My, oh my… starting a post with “asinine” does not give you great leverage.
    A) Going through a red light because you have a passenger who’s convulsing and needs to go to the hospital is not as bad as going through a red light because you’re late for Happy Hour. What I’m saying is that – if you bribe someone to stay alive in a foreign country that is crooked enough to require bribary for you to operate your charity – is one thing. To bribe because you want to be richer and get a “leg up” on the competition is another. I’m not sure what you mean by “energy companies”. If the FBI is trying to entrap gun companies, why is it that the only manufacturer named is S&W?
    And are you serious when you lackadasically say that the FBI does not prosecute energy companies? Have you heard of CVA (Ca. Valve Company)? Have you heard of Willbros International?
    Do you know that the sting included a company trying to sell armored vests?
    Again: it’s vital to check facts, before making written statements about what the FBI does and does not do. Just because you read one article about S&W arrests does not mean that’s all the FBI did, lately. The world does not end in your in-box!

    B) Jihadism is religiously-motivated. Religious fanaticism exists. We’re in agreement. There are approximately a billion muslims in the world. Some are “waging war” because they are religious fanatics. Some are waging war because they are poor. Some are waging war because they have political reasons to. The rest (the vast, vast majority) are not waging any war, are living peacefully, and want to continue doing so. If that were not the case, the World would be overrun easily. The war WE are waging against the terrorists is not a religious one; it is a series of tactics designed to preempt future aggressions. This has a strong political tone, but not a religious one. Jordan is a country where Christians enjoy a great level of freedom, though they make up only 5% of the population. I’m not saying many Islamic countries are not culpable of great violations of religious freedom. I’m just saying that’s not why we’re fighting this war.

    C) I don’t like to mix my professional life with my personal life. That’s why I don’t give out details. Believe me or not, that is up to you. If anyone who dissents with your views is automatically Pink, a Commy, a liberal moby, or what have you, is in my opinion a display of prejudice and intolerance that lines up perfectly with the approach of many Islamic countries.

    D) I’m not sure if you’re aware that the problem with the FBI is the exact opposite: after 9/11, thousands of agents were transferred to counterterrorism, to address the needs of that area. I’m not saying it was wrong: I happen to agree with that need, and with the fact that we need to throw resources at this problem. I’m just wondering how you figure that this shift is an indication that we are spending too much time or resources prosecuting white collar crimes.

    E) Well… if that’s what you got out of my post, I’m disappointed. I must have not written well.

  9. Jordan deports foreign Christians for “preaching” and it is illegal to convert from Islam. The government there makes missionary activities illegal. If this is how you define a “great level of freedom” I am beginning to understand your position.

  10. Are you kidding me ..the whole world is corrupt.
    I am glad that this guy was caught if he was doing the things they say, shame on him being sucked into that so easly. Now it make Smith and Wesson look bad because of one dirt bag. That isn’t good for us this is a local company and I have friends that work there that are proud of what they do. I feel for them.

    My question is
    why are we putting so much of our tax dollars on something like this when a known terrroist was able to walk on a plane and attempt to blow it up.
    ARE YOU KIDDING ME…why isn’t the FBI doing their jobs and going after the real bad guys. Our own government is corrupt as far as you could toss them..you have to be kidding me with this.

    When is the CIA and FBI going to start PROTECTING this country by going after the imagrants that are here illegally and want to blow us up.
    Wow how much time and effort was put in to this compared to the dirt bag that got on that plane, and no one stopped him.
    do we see a problem here ?

    Yikes this country is terrible trouble not only do our youth have no common sense but niether do our leaders we are going to Hell in a hand basket, as the old timers would say…
    Now I am believing everything my grand parents were saying, back then and some.

  11. Sandy Berger destroys secret papers from the National Archives and gets a slap on the wrist. The Chinese now target America with nukes thanks to Loral Corp. and Bill Clinton. Barney Frank, Chris Dodd, Jamie Gorelick and Franklin Raines are over their heads in the Freddie and Fannie “fraud of the century”.
    How about ACORN, how about treason, how about that hospital kickback thing with Obama and his wife when her salary increased to $364,000 from $161,000 just because he was elected to the Senate. Did he kickback sums to that hospital?
    What about Charlie Rangel’s tax evasion? Where is the FBI? Where have they buried that justice lady? You know, the one with the scales and the blindfold?
    May I submit that the blindfold is currently on the FBI and the scales are a skin condition of our current commander in thief.

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