A former Florida CEO has pleaded guilty to one count of felony smuggling and admitted to 166 administrative violations of U.S. export control laws as part of a global settlement with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS).
Eric Baird, the former owner and Chief Executive Officer (CEO) of a Florida-based package consolidation and shipping service, Access USA Shipping, LLC d/b/a MyUS.com, pleaded guilty on December 12, 2018, in the U.S. District Court for the Middle District of Florida.
As part of the administrative settlement, Baird admitted to violations of the Export Administration Regulations committed from August 1, 2011, through January 7, 2013, during his tenure as CEO of Access USA. Baird founded Access USA and developed its business model, which provided foreign customers with a U.S. address that they used to acquire U.S.-origin items for export without alerting U.S. merchants of the items’ intended destinations.
Under Baird’s direction, Access USA developed practices and policies which facilitated concealment from U.S. merchants. The company would regularly change the values and descriptions of items on export documentation even where it knew the accurate value and nature of the items. Among the altered descriptions were some for controlled items listed on the Commerce Control List (CCL). For example, laser sights for firearms were described as “tools and hardware,” and rifle scopes were described as “sporting goods” or “tools, hand tools.”
Additionally, Baird established and/or authorized Access USA’s “personal shopper” program. As part of this program, Access USA employees purchased items for foreign customers from a shopping list while falsely presenting themselves to U.S. merchants as the domestic end-users of the items. In some cases, Baird directed or authorized Access USA employees to use his personal credit card information, and in others Baird personally asked Access USA employees to apply for and use personal credit cards of their own to make such purchases and have the items sent to their personal addresses.
The activities that Baird knowingly authorized and/or participated in resulted in unlicensed exports of controlled items to various countries, as well as repeated false statements on Automated Export System (AES) filings. As early as September 2011, Baird was made aware that undervaluing violated U.S. export laws, including the EAR. In fact, Baird received e-mails on this subject from his Chief Technology Officer, who stated, “I know we are WILLINGLY AND INTENTIONALLY breaking the law.” (Emphasis in original).
As part of the agreement, Baird will pay a record $17 million to the U.S. Department of Commerce, with $7 million suspended. He will also face a 5-year denial of export privileges, of which one year is suspended. The civil penalty is the largest to be paid by an individual in BIS history. In February 2017, Access USA settled with BIS and agreed to an administrative civil penalty of $27 million, with $17 million suspended.
Baird’s actions were detected and disrupted by the Department of Commerce and the Department of Homeland Security, who used their investigative skills and dedication to protect national security. The settlement marks a significant victory in the fight against complex illegal export schemes.
Defendant: Eric Baird
Criminal Charge: One count of felony smuggling
City and State: Florida
Date: December 12, 2018
Sentence: Agreed to pay $17 million, with $7 million suspended, and a 5-year denial of export privileges, of which one year is suspended
Key Facts
- State: Florida
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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