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Complaint and Affidavit in Support of Arrest Warrant Rex G

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Complaint and Affidavit in Support of Arrest Warrant Rex G DSS/JDG:SDD/SPN F.#2013R00278 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK - - X UNITED STATES OF AMERICA TO BE FILED UNDER SEAL - against - COMPLAINT AND AFFIDAVIT IN SUPPORT OF ARREST WARRANT REX G. MARALIT, ARIEL MARALIT and (T. 18, U. S.C., §§ 371, WILFREDO MARALIT, 922 (a) (1) (A), 9 2 4 (a) ( 1 ) (D) and 3 5 51 Defendants. et ~.; T. 22, U.S.C., §§ 2 7 7 8 (b) ( 2 ) and ( c ) ; T. 22, C.F.R., §§ 120 et seq.) - - X EASTERN DISTRICT OF NEW YORK, SS: STEVEN R. GOODMAN, being duly sworn, deposes. and says that he is a Special Agent with Homeland Security Investigations ("HSI"), duly appointed according to l~w and acting as such. 1. Upon information and belief, on or about and between January 1, 2009 and March 5, 2013, both dates being approximate and inclusive, within the Eastern District of New York and elsewhere, the defendants REX G. MARALIT, ARIEL MARALIT and WILFREDO MARALIT, together with others, did knowingly and willfully conspire to: (a) export from the United States to the Philippines defense articles, designated on the United States Munitions List ("USML"), to wit: firearms and firearms components, including a Barrett M82Al .50 caliber semi-automatic rifle, a Remington Model 700 SPS .308 caliber tactical sniper rifle, a P.S.A. 5.56mm semi-automatic rifle, FN SCAR .308 caliber assault rifles, 5.7mm FN Herstal pistols and other firearms and firearms components, without first obtaining the required license or written approval from the State Department, contrary to Title 22, United States Code, Sections 2778(b) (2) and 2778(c) and Title 22, Code of Federal Regulations, Parts 121 and 127; and (b) engage in the business of dealing in firearms, not being licensed importers, licensed manufacturers or licensed dealers of firearms, contrary to Title 18, United States Code, Sections 9 2 2 (a) (1) (A) , and 9 2 4 (a) (1) (D) . 2. It was part of the conspiracy that the defendants REX G. MARALIT, ARIEL MARALIT and WILFREDO MARALIT, together with others, arranged for the purchase and export of defense articles listed in Categories I(a), I(c), I(g) and I(h) of the USML, including a Barrett M82A1 .50 caliber semi-automatic rifle, a Remington Model 700 SPS .308 caliber tactical sniper rifle, a P.S.A. 5.56mm semi-automatic rifle, FN SCAR .308 caliber assault rifles, 5.7mm FN Herstal pistols and other firearms and firearms components, from the United States to the Philippines without first obtaining an export license from the State Department. 3. In furtherance of the conspiracy and to effect its unlawful objectives, within the Eastern District of New York and 2 elsewhere, the defendants REX G. MARALIT, ARIEL MARALIT and WILFREDO MARALIT, together with others, committed and caused the commission of, among others, the following: OVERT ACTS a. On or about July 16, 2009, ARIEL MARALIT sent an email to REX G. MARALIT and WILFREDO MARALIT from an internet protocol ("IP") address in the Philippines, with the subject line "buying orders," that listed proposed purchase prices, sale prices, and net profits per person for specified firearms. b. On or about August 13, 2009, WILFREDO MARALIT submitted a bid to purchase a 5.7mm FN Herstal pistol through an online firearms marketplace. c. On or about August 14, 2009, WILFREDO MARALIT sent an email to a firearms seller providing contact information for the defendant REX G. MARALIT. d. On or about December 1, 2011, ARIEL MARALIT sent an email to REX G. MARALIT from an IP address in the Philippines, indicating that he had identified a buyer in the Philippines for a Remington 700 SPS . 308 caliber rifle and a Barrett M82A1 .50 caliber semi-automatic rifle. e . On or about December 1, 2011, ARIEL MARALIT sent an email to REX G. MARALIT from an IP address in the 3 Philippines setting forth how the Barrett M82A1 .50 caliber semi­ automatic rifle should be shipped to the Philippines. f. On or about December 9, 2011, REX G. MARALIT, together with others, purchased a Barrett M82A1 .50 caliber semi­ automatic rifle . g. On or about December 19, 2011, REX G. MARALIT traveled to Pennsylvania and took possession of a Barrett M82A1 . 50 caliber semi-automatic rifle and a Remington 700 .308 caliber SPS rifle . h. On or about December 25, 2011, REX G. MARALIT sent an email to ARIEL MARALIT attaching a copy of a United States Postal Service declaration form and receipt for shipping fees. i. In or about December 2012, REX G. MARALIT shipped firearms and firearms components from the United States to the Philippines via John F. Kennedy International Airport ("JFK") in Queens, New York . j. On or about February 8, 2013, REX G. MARALIT sent a text message to a licensed firearms dealer in Pennsylvania. k . On or about March 5, 2013, WILFREDO MARALIT took possession of a P.S.A. 5.56mm semi-automatic rifle from a licensed firearms dealer in California. 4 (Title 18, United States Code, Sections 371 and 3551 et seq.) The source of your deponent's information and the grounds for his belief are as follows: 1 4. I am currently a Special Agent with HSI, and have served in this capacity since May 2010. Prior to joining HSI, I served as a special agent with the United States Secret Service from July 2001 to September 2006, and with the Department of Commerce, Office of Export Enforcement from September 2006 to May 2010. I am currently assigned to the Counter Proliferation Investigations Group at HSI . My duties include the investigation and enforcement of federal laws involving the unlicensed export of controlled commodities, including certain types of firearms and firearms components. 5. As an HSI special agent, I have received advanced training at the Federal Law Enforcement Training Center ( "FLETC" ) . In addition, I have conducted and participated in several investigations involving the unlicensed export of U.S. commodities, including firearms and firearms components. 11 Because this affidavit is being submitted for the limited purpose of establishing probable cause to arrest the defendants, I have not set forth every fact learned during the course of this investigation. 5 6. Through my training, education, and experience ­ which has included (i) reviewing financial records; (ii) conducting surveillance of individuals engaged in the violation of federal law; and (iii) executing search warrants on suspect premises - I have become familiar with the manner in which controlled commodities are unlawfully exported from the United States to foreign countries, directly or indirectly, to avoid both licensing requirements and detection by law enforcement. 7. I have personally participated in this investigation and have witnessed some of the facts and circumstances described herein. In addition, I have received information from other federal law enforcement officials, including foreign law enforcement officials. I also have reviewed documents obtained during the course of the investigation. The statements contained in this .affidavit are based on my own observations as well as the review of documents and reliable information provided to me by other law enforcement personnel. Where the contents of documents, or the actions, statements and conversations of others are reported herein, they are reported in sum and substance and in part, except where otherwise indicated. In addition, where foreign language materials are referenced, they are based on summary draft translations, which are subject to revision. 6 I. Introduction 8. Since in or about February 2013 1 I have been participating in the investigation of the defendants REX G. MARALIT 1 ARIEL MARALIT 1 WILFREDO MARALIT and others for possible violations of U. S. export laws/ including the unlicensed export of firearms and firearms components/ which are regulated by the United States government. This investigation has revealed that the defendants REX G. MARALIT 1 ARIEL MARALIT and WILFREDO MARALIT conspired to unlawfully export firearms and firearms components from the United States to the Philippines without first obtaining the necessary export licenses/ in violation of 22 U.S.C . § 2778 (c). 9. At all times relevant to the complaint/ pursuant to Title 22 1 United States Code/ Section 2778(b) (2) 1 defense articles designated by the President of the United States on the USML may not be exported without a license from the United States Department of State/ Directorate of Defense Trade Controls (nDDTC"). In addition/ pursuant to Title 22 1 Code of Federal Regulations/ Section 120 1 et seg. 1 the DDTC is responsible for the administration of the International Traffic in Arms Regulations (niTAR") as they relate to the manufacture/ brokering/ import/ export/ and transfer of defense articles and defense services. Title 22 1 United States Code/ Section 2778(c) 7 provides criminal penalties for willful violations of Section 2778 . 10. Category I of the USML expressly applies to "Firearms, Close Assault Weapons and Combat Shotguns." See 22 C.F.R. § 121.1. Category I(a) of Section 121 . 1 pertains to "Nonautomatic and semi-automatic firearms to caliber . 50 inclusive (12.7 mm)". Category I(c) of Section 121.1 pertains to "Firearms or other weapons (e.g., insurgency-counterinsurgency, close assault weapons systems) having a special military application regardless of caliber . " In addition, Category I(g) of Section 121.1 pertains to "Barrels, cylinders, receivers (frames) or complete breech mechanisms for the articles in paragraphs (a) through (d) of this category" and Category I(h) pertains to "Components, parts, accessories and attachments for the articles in paragraphs (a) through (g) of this category." Section 123.1 of the Code of Federal Regulations provides that "Any person who intends to export a defense article must obtain the approval of the [DDTC] prior to the export or temporary import, unless the export or temporary import qualifies for an exemption under the provisions of this subchapter .
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