Sabre Defence

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msnbc.msn.com/id/42301380/ns/us_news-crime_and_courts

NASHVILLE, Tennessee — Affidavits attached to search warrants for a Tennessee company show that illegally trafficked assault rifles and gun parts connected to the company were found in Middle Eastern countries, including Jordan and the United Arab Emirates.

..Federal court documents unsealed Wednesday related to Sabre Defence Industries, fill in the picture of an alleged conspiracy to skirt U.S. regulators and law enforcement to gain an advantage in the international arms industry.

Four local Sabre executives charged in a 21-count federal indictment are scheduled to change their not guilty pleas Monday, The Tennessean reported.

The alleged fraud included British owner and CEO Guy Savage and Nashville officials using "phony shipping documents" and invoices from "fairy land," sending gun parts overseas under false bottoms in shipping containers and stamping silencers illegally imported from Finland as if they were manufactured in Nashville, according to the affidavits.

'Lawn mower mufflers'
By 2007, Sabre officials were going as far as calling silencers "lawn mower mufflers" and rifle barrels "gear shafts" in their effort to fly under the radar of regulators.

Federal prosecutor John Webb confirmed that the four Tennessee defendants — President Charles Shearon, Chief Financial Officer Elmer Hill, Director of Sales Michael Curlett and International Shipping and Purchasing Manager Arnold See Jr. — have reached a plea agreement with the government.

The details of the agreements will be filed with the U.S. District Court for the Middle District of Tennessee after Monday's hearing.

.Webb said Savage has an extradition hearing this week in Britain. Lawyers for the defendants did not return phone messages and emails seeking comment.

The unsealed records paint a picture of Savage, having purchased the Nashville gun manufacturer formerly known as Ramo Defense Systems in 2002, with the hope of shipping parts to his British company, also named Sabre, and hoping to score U.S. defense contracts.

When U.S. authorities threw up roadblocks, Savage turned to illegal means to keep guns and parts flowing between his U.S. and U.K. companies to remain competitive. The alleged fraud continued for several years, even as individuals within and outside the company raised concerns.

Concurrently, loose inventory controls allowed lower-level employees to remove Sabre weapons and components from the Nashville production line, according to the affidavits. In some instances two guns would be labeled with the same serial number, allowing one to enter circulation without documentation. One former employee, Charles Kerr, is accused of selling Sabre guns to a local buyer. Both men are charged with illegal gun trafficking in a federal indictment.

The documents reveal that Sabre has been under investigation since 2007 by two separate federal agencies. U.S. Immigration and Customs Enforcement started an investigation that year after receiving a tip that Sabre was illegally exporting M16 parts to the U.K. In 2008, DHL flagged a suspicious package sent by Sabre in Nashville and bound for Sabre in the U.K. Agents found 71 finished M4 rifle barrel assemblies under a false bottom in the shipping container.

After being confronted by ICE agents in 2008, Shearon said, "We (messed) up and I don't want you guys to think we are criminals," according to the affidavits.

Staged burglary?
The Bureau of Alcohol, Tobacco and Firearms started a separate investigation in 2009 when the circumstances of a reported burglary at the home of Sabre salesman Rick Rardon raised suspicions. Investigators thought the burglary appeared staged and that the guns might have been sold illegally. ICE and ATF combined their efforts once they became aware of each other's investigations.

A series of emails from 2003 to 2008 and obtained by investigators show Sabre management and employees illegally moving guns and parts, including silencers, the affidavits state.

In a December 2003 email, Hill wrote an email to Savage and said, "We are currently 'stretching' the rules on stating the value and description of parts that we are sending you."

In 2004, Shearon wrote Savage an email stating, "The 100 barrels without chambers will be ready Mon. or Tues. if we can find someone dumb enough to sign the shipping documents we will send them to you."

Hundreds of guns ultimately found their way to the volatile Middle East. Webb said authorities continue to investigate the end destination of the illegally trafficked guns and gun parts.
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Was Sabre 'known' within the industry to be engaged in this kind of stuff, or did they have a squeaky clean image?

This sounds absolutely INSANE that an established (somewhat) firearms company would even dabble in this crap. All for a few hundred extra sales? Unreal...
 
rivetc78 said:
But what does a 'black market' rifle go for?? $1000? 5000? more?

If you are putting hundreds of thousands of cash in your pocket.......


He (they) committed the ultimate crime, they were taking away business away from the American government.
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No theye're cardinal sin here was getting caught. I'd imagine this happens in the industry with relative frequency.
 
Sabre in the Uk bought RAMO Defense here to do US Mil stuff -- but also it seems to circumvent ITAR requirements.

They are rightly screwed.

It does not happen often in the Industry -- but I blame the Brits ;)
 
canucklehead said:
Was Sabre 'known' within the industry to be engaged in this kind of stuff, or did they have a squeaky clean image?

This sounds absolutely INSANE that an established (somewhat) firearms company would even dabble in this crap. All for a few hundred extra sales? Unreal...
Click to expand...

rivetc78 said:
But what does a 'black market' rifle go for?? $1000? 5000? more?

If you are putting hundreds of thousands of cash in your pocket.......


He (they) committed the ultimate crime, they were taking away business away from the American government.
Click to expand...

Hokus Grey said:
No theye're cardinal sin here was getting caught. I'd imagine this happens in the industry with relative frequency.
Click to expand...


The problem in my opinion is that we're talking about the US State Dept. They take forever to approve rosarys for nuns.
 
KevinB said:
Sabre in the Uk bought RAMO Defense here to do US Mil stuff -- but also it seems to circumvent ITAR requirements.

They are rightly screwed.

It does not happen often in the Industry -- but I blame the Brits ;)
Click to expand...

Or as we like to say at work - why buy the best when you can buy British?
 
ITAR's are relatively simple for Government End Users.

It takes zero time to ship stuff to Canada for instance for Fed government use -- Night Vision we can just ship, Suppressors and Full Auto stuff takes about 2 weeks.

Hardly a major issue for legitmate requests.

England, Australia and some other allies take a wee bit longer.

Once again for LEGITIMATE GOVERNMENT USAGE.

What Sabre did is cover up illegal arms sales to non government entities in the Uk, who then exported them to a (number of) third party (ies)

Not at all the same.
 
and I would assume 3rd parties who wouldn't have qualified for US State Dept. approval if they had requested it.
####ty thing is, he could have legally machine and produced quality components over there, sold it over there, all without needing US approval. I don't get why they did it this way? I suppose their agreements on technology exporting could have bit him in the ass too, but most of this stuff is freely available these days on the internet. Stupid, dumb, boneheaded move, and now a bunch of people are going to spend a lot of time in little locked rooms. On top of that, good people might get hurt or killed by these actions overseas. That really sucks.
 
Just a little update: as of May, Sabre Defence was purchased by Manroy USA.

He claims the US authorities do not want a foreigner owning a company that supplies its army and claims the plot involved a bank's lawyer, Manroy and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
He says Sabre owed money to the US bank which called in the debt while Mr Savage was in custody in an attempt to send it into enforced bankruptcy, allowing purchase at a low price.
Mr Levine claimed his client stopped Sabre's US arm being sold to Manroy for $2.7m just in time and put it up for auction, where he says Manroy bought it for $5.75m
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and a FYI
Manroy USA > Manroy is a leading supplier to the global defense industry with extensive experience in the production of machine guns, mounts and ancillary products. Our strong commitment to quality and service continue to build our reputation for delivering high-value, reliable products with a first-class service.
 
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