Stolen Documents and Eavesdropping

Raytheon Watch Calls For Federal Investigation
To Determine Whether Crimes Were Committed

Raytheon has again been impicated in an alarming case of corporate crime, this time involving a $450 million military contract. On May 12, 1999, Reuters reported that Raytheon "will pay $3 million to a competitor, AGES Group, and purchase $13 million worth of AGES aircraft parts to settle allegations that a security firm hired by Raytheon eavesdropped on and stole documents from AGES. " AGES also alleged that stolen confidential pricing documents were turned over to Raytheon. Based on reports in the Boston Herald, the stolen documents appeared to be trade secrets protected by federal law. The settlement was unusual in that the parties agreed that judgment would be entered against Raytheon, legally establishing the validity of AGES' law suit. Civil suits are almost always settled by means of a "stipulation of dismissal" in exchange for the payment of money. In these cases, defendants do not admit to being liable or agree to the entry of judgment, and are free to disclaim liability [The above photo shows a "shotgun microphone," one of the listening devices allegedly used by Wackenhut spies].

Reuters reported, "AGES filed suit against Raytheon in federal court in Alabama in 1996 over a $450 million contract to service C-12 and U-21 military aircraft. Both Raytheon and AGES were vying for the contract, which Raytheon had held for decades but which AGES won in 1996, the Herald said. AGES alleged that the security firm Wackenhut Corp. (WAK - news), hired by Raytheon, used video and audio surveillance to spy on a consulting firm hired by AGES to help it prepare its bid, the Herald said. "

According to Attorney J. Whitfield Larrabee, founder of Raytheon Watch, "The United States Department of Justice should not ignore substantial allegations that criminal practices were engaged in to secure a military procurement contract involving over $450 million. We have sent a written demand to Attorney General Janet Reno asking for a full criminal investigation. Taxpayers must be protected from corruption by profit oriented military corporations. The vast amounts of money involved in these contracts should cause weapons contractors to be subjected to a high degree of scrutiny. This is especially the case with Raytheon, because it is a convicted felon for previously illegally obtaining secret Air Force planning documents."

Courts have held that copying documents containing trade secrets and transporting those documents across state lines violates the National Stolen Property Act ("NSPA"), 18 U.S.C. 2314.

Similarly, 18 U.S.C. 2315 criminalizes the sale or receipt of stolen goods and could serve as a companion to the NSPA in a federal prosecution of trade secret theft. Anyone who receives stolen property consisting of goods, wares, merchandise, securities or monies valued in excess of $5,000 knowing that the property was stolen could be fined not more than $10,000 and/or imprisoned not more than ten years. This statute could be used to prosecute a party who receives stolen trade secrets across state borders (for example a rival company, possibly Raytheon), while the NSPA could be used to prosecute the party who actually took the trade secrets (possibly Wackenhut Corp.) Like the NSPA, 18 U.S.C. 2315 applies only if the alleged thief took some tangible embodiment of the trade secret, such as documents or copies of documents.

The alleged theft of documents and eavesdropping by Raytheon and its agent Wackenhut Corporation may be a criminal violation of the federal Economic Espionage Act of 1996, codified at 18 U.S.C. § 1832, depending on whether the theft occurred prior to the enactment of law in 1996. Section 1832 makes the theft of trade secrets with a nexus to interstate commerce a felony, if the defendant acted for economic benefit of someone other than the trade secret owner with the intent to injure the owner. Individuals that violate or conspire to violate section 1832 can be imprisoned for up to ten years and fined up to $250,000.00; corporate defendants like Raytheon can be subject to a 5 million dollar fine.

Media reports suggest other criminal violations as well. If the theft of trade secrets is established, denials by Raytheon and Wackenhut officials during the discovery phase of the federal law suit could amount to perjury and obstruction of justice. Conspiracies of the sort alleged in the lawsuit can also violate federal laws against racketeering, the RICO law, in some instances, if the trade secret theft involved the formation of an "enterprise" engaged in a "pattern of racketeering activity" in violation of 18 U.S.C. 1961, et. cet. If the federal mail or telephone system was used, as seems likely, then federal mail and wire fraud statutes may have been violated.

AGES had developed a compelling case against Raytheon's agent, Wackenhut. Eyewitness observations indicated that investigators used sophisticated electronic eavesdropping equipment to obtain confidential pricing information from the offices of AGES consultant, The Libertatia Associates in Slocomb, Alabama. According to neighbors who became witnesses, Wackenhut investigators placed the offices of The Libertatia Associates under surveillance with a "parabolic microphone, " a "shotgun microphone," a reel to reel tape recorder, headphones, and a flat oval shaped antenna. According to experts, this type of antenna is used in connection with short range electronic transmitting devices, commonly known as "bugs." Witnesses also identified a woman associated with Wackenhut leaving the offices of The Libertatia Associates. Shortly thereafter, confidential pricing documents were found to be missing [Parabolic microphones, like the one pictured above, amplify speach from a distance to allow for eavesdropping on private conversations].

Federal laws against electronic eavesdropping provide stiff penalties for illegally bugging business competitors. Wackenhut is notorious for its illegal wiretapping and "investigative" activities, information undoubtedly known to Raytheon when it hired this corporate renegade as its investigator.

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