Charles Wright, Smuggling, New York 2005

Buffalo, NY - In a shocking case of corporate greed, Charles Wright, 64, was sentenced to time served and two years supervised release for conspiring to smuggle magnesium powder into the United States. Wright, the former president of ESM Group, Inc., a specialty metal powders supplier, was also ordered to pay $1,933,999 in restitution and forfeit $75,000.

According to Assistant U.S. Attorney Michael DiGiacomo, Wright sought to expand ESM's customer base to include the defense industry by entering into an agreement with Superior Metal Powders Inc. The agreement allowed Superior Metal Powders to obtain and market magnesium powder on behalf of ESM Group Inc.

However, Wright learned that the magnesium powder being imported from China was avoiding a 305.56% antidumping duty, and instead of halting the shipments, he authorized additional imports, resulting in a total loss of $1,933,999 in duties to the United States from January 2005 through May 2005.

The magnesium powder was used to produce countermeasure flares for the Department of Defense, which are used in military aircraft to divert heat-seeking missiles. The case is a stark reminder of the lengths to which corporate executives will go to increase profits.

The sentencing is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, the Internal Revenue Service, and the Department of Defense Criminal Investigative Service.

Wright's case is the latest in a string of convictions in a conspiracy to import Chinese magnesium into the United States, which also includes Gregory Magness, Justin Magness, William Nehill, and Eldon Bott. All defendants now stand convicted.

As the Grimy Times continues to expose the dark underbelly of corporate America, one thing is clear: those who engage in such reckless and illegal behavior will be held accountable.

Source: https://www.justice.gov/usao-wdny/pr/former-corprate-president-sentenced-conspiring-smuggle-magnesium-powder-united-states