[HATS] Fwd: Supercircuits Busted

[Ed Manuel]

FYI :-)


>Looks like they finally got Supercircuits like they did Ramsey for selling
>transmitting equipment on ham bands to anybody primarily for surveillance
>purposes.  See below.
>Tom O'Hara, W6ORG
>P. C. Electronics
>www.hamtv.com
>Phone 626-447-4565
>m-th 8AM to 5:30PM Pacific time
>
> >Company admits it sold illegal audio bugs
> >Customs Service says hidden microphones violate privacy laws.
>
> >By Cara Anna
> >AMERICAN-STATESMAN STAFF
> >Thursday, November 28, 2002
> >http://www.austin360.com/auto_docs/epaper/editions/thursday/business_
> >4.html
>
> >A Liberty Hill company that specializes in spy-like gadgets has
> >admitted to illegally selling audio eavesdropping devices, ending a
> >three-year investigation by the U.S. Customs Service.
>
> >Supercircuits Inc. was found to be selling smoke detectors, clock
> >radios and hundreds of other household items that contained tiny
> >video cameras with microphones. On Wednesday, the company agreed to a
> >punishment that could include five years in prison for executives and
> >a fine of no more than $500,000.
>
> >Vincent Klink, the Customs Service agent in charge in Austin, said
> >Supercircuits might get a year's probation and pay a fine of about
> >$250,000. A sentencing date will be set in the next month or two.
>
> >"There's a huge privacy issue involved here," Klink said. Even law
> >enforcement -- itself a big Supercircuits client -- has to get
> >permission from a federal judge to use eavesdropping devices, he
> >said.
>
> >"This case is significant because of the volume of sales
> >Supercircuits does," Klink added. "They're definitely among the
> >largest companies in the world in this area."
>
> >Supercircuits, founded in 1989, grew from a small mail-order
> >surveillance camera business to one with sales of about $20 million
> >last year. The company has said its sales grow by about 50 percent a
> >year.
>
> >When the company recently moved to Liberty Hill from Leander, owner
> >and founder Steven Klindworth paid for the 15 acres and a
> >18,000-square-foot plant in cash.
>
> >Supercircuits' tiny cameras are tucked into clothing, buttons and
> >other items. The company made the 2002 Guinness Book of World Records
> >for making a color video camera the size of a sugar cube.
>
> >But it was the mini-microphones that got the Customs Service going.
> >After noticing the eavesdropping products in a Supercircuits catalog,
> >agents seized about 650 devices during a raid in late 1999.
>
> >The audio quality of the devices "was as good as you and I talking
> >right now," Klink said during a non-cellular telephone call.
>
> >The Customs Service continues to investigate the buyers of the
> >thousands of eavesdropping products Supercircuits sold. The more than
> >100 groups, which include hotels, lawyers, news organizations and
> >schools, could face charges for owning the products, Klink said.
> >"There's no one local," he added.
>
> >Foreign governments bought the items, but the Customs Service is only
> >looking at U.S.-based groups, Klink said.
>
> >Klindworth said in a statement that at the time the company didn't
> >know it was illegal to sell such items to the public.
>
> >"Supercircuits is a law-abiding company," Klindworth said. "In fact,
> >nearly half of our sales are to law enforcement and military
> >agencies. ... Supercircuits deeply regrets its actions."
>
> >The sales of the products represented 2.4 percent of the company's
> >sales, Klindworth said.
>
> >Klink said the eavesdropping devices will be destroyed once
> >Supercircuits is sentenced.
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