| From: | "Karen Lee Wald" <[EMAIL PROTECTED]> |
| Subject: | Flagrant Extraterritoriality--more on trial of Canadian businessman |
| Date: | Thu, 28 Mar 2002 20:38:11 -0800 |
HTTP://WWW.STOPNATO.ORG.UK ---------------------------
Don't forget that what he is accused of doing is
selling water purification chemicals to Cuban
hospitals!
This just sent off to the Canadian Post, Canadian equivalent of the AP.
best,
steve
Cuba/Canada Trading Case Goes to Jury
by Steve Eckardt
28 March 2002
The fate of Canadian citizen James Sabzali went into the hands of a jury here
Thursday. Sabzali faces up to life in prison and fines of over US$19 million
for sales of water purification supplies on behalf of a Canadian subsidiary
of Pennsylvania-based corporation, Bro-Tech.
A verdict is not expected until next week.
The former Hamilton salesman along with one Bro-Tech executive and the
corporation itself were charged with 76 counts of violating the 1919 US
Trading with the Enemy Act and a single count of conspiracy. Another
corporate officer was charged solely with conspiracy.
Attention has focused on the challenges to Canadian sovereignty inherent in
the prosecutions. Sales of Welsh-manufactured goods to Cuba were made
entirely through Canadian, UK, and Italian subsidiaries, company officials
claimed, and in accordance with expert legal opinion. Operating from Canada,
Sabzali was bound by the Canadian Foreign Extraterritorial Measures Act to
not comply with the US embargo against Cuba, his lawyers contend.
In final argument Thursday, the attorney representing Bro-Tech, Kevin Downey,
declared that "the company did not have motive to expose itself to major
criminal liability" for sales which netted less than US$48,000 in profits and
constituted 0.3% of their business.
Instead, the defendants were "trying to navigate ... confusing and
conflicted" laws in the US, UK, and Canada. Downey charged the government
with "grasping, over-reaching [in] trying to prosecute conduct that is not
criminal.... The government is trying to reach across [national] boundaries"
to enforce its anti-Cuban embargo.
In closing rebuttal argument, Assistant US Attorney Michael Levy charged that
"there is American involvement all over" the 1992-2000 sales of goods valued
at some two million US dollars. He asked the jury, "What are US citizens in a
Bala Cynwyd [Pennsylvania] office doing talking, even in cryptic terms, about
Cuba?"
Meanwhile, Sabzali, Levy charged, "was doing everything he can to help
[Bro-Tech] violate US law," adding that "when you're living here and working
here, our [US] law governs." The former Hamilton salesman moved to
Pennsylvania and joined Bro-Tech in 1996, although 32 charges against him
stem entirely from Canadian activity.
Despite the import for Canadian/US relations and growing domestic calls for
the US to end its 41 year embargo, the trial was sparsely attended and given
little coverage by the US media.
Objection to imposition of US law on Canadian citizens doing business with
Cuba from Canada reached a high point in 2000 when US authorities threatened
to prosecute Burlington native Claude Gauthier, who had taken over Sabzali's
position following his move to Pennsylvania.
Given that Gauthier had never set foot in the US, then minister of foreign
affairs Lloyd Axworthy protested to the US State Department that indictment
of Gauthier would set "a dangerous precedent" to which Canada would "strongly
object."
In response, then Secretary of State Madeleine Albright issued a curt reply
terminating the US investigation of Gauthier. Canada's lack of subsequent
objection to prosecution of Sabzali fueled speculation that a deal had been
struck between Washington and Ottawa which left him without backing from his
government.
Canada's stance was signaled by a statement from Foreign Affairs spokesman
Reynald Doiron that "Mr. Sabzali knew pretty well when he moved to the US
that he might run the risk of being indicted."
"That's ridiculous," responded Sharon Moss, Sabzali's Canadian-born wife,
Thursday. "That means that nobody [from Canada] who's traveled to Cuba can
cross the US border."
Sabzali, who has two children, awaits the verdict on what he described as "a
tight leash," with his passport and house deed in US government hands. He is
restricted from traveling beyond a small corner of Pennsylvania.
Attorneys refused to speculate on the verdict. Observers were divided on the
possible outcome, although the sheer weight of the government's five-year
investigation is likely to factor into the decision.
--30--
best,
steve
Cuba/Canada Trading Case Goes to Jury
by Steve Eckardt
28 March 2002
The fate of Canadian citizen James Sabzali went into the hands of a jury here
Thursday. Sabzali faces up to life in prison and fines of over US$19 million
for sales of water purification supplies on behalf of a Canadian subsidiary
of Pennsylvania-based corporation, Bro-Tech.
A verdict is not expected until next week.
The former Hamilton salesman along with one Bro-Tech executive and the
corporation itself were charged with 76 counts of violating the 1919 US
Trading with the Enemy Act and a single count of conspiracy. Another
corporate officer was charged solely with conspiracy.
Attention has focused on the challenges to Canadian sovereignty inherent in
the prosecutions. Sales of Welsh-manufactured goods to Cuba were made
entirely through Canadian, UK, and Italian subsidiaries, company officials
claimed, and in accordance with expert legal opinion. Operating from Canada,
Sabzali was bound by the Canadian Foreign Extraterritorial Measures Act to
not comply with the US embargo against Cuba, his lawyers contend.
In final argument Thursday, the attorney representing Bro-Tech, Kevin Downey,
declared that "the company did not have motive to expose itself to major
criminal liability" for sales which netted less than US$48,000 in profits and
constituted 0.3% of their business.
Instead, the defendants were "trying to navigate ... confusing and
conflicted" laws in the US, UK, and Canada. Downey charged the government
with "grasping, over-reaching [in] trying to prosecute conduct that is not
criminal.... The government is trying to reach across [national] boundaries"
to enforce its anti-Cuban embargo.
In closing rebuttal argument, Assistant US Attorney Michael Levy charged that
"there is American involvement all over" the 1992-2000 sales of goods valued
at some two million US dollars. He asked the jury, "What are US citizens in a
Bala Cynwyd [Pennsylvania] office doing talking, even in cryptic terms, about
Cuba?"
Meanwhile, Sabzali, Levy charged, "was doing everything he can to help
[Bro-Tech] violate US law," adding that "when you're living here and working
here, our [US] law governs." The former Hamilton salesman moved to
Pennsylvania and joined Bro-Tech in 1996, although 32 charges against him
stem entirely from Canadian activity.
Despite the import for Canadian/US relations and growing domestic calls for
the US to end its 41 year embargo, the trial was sparsely attended and given
little coverage by the US media.
Objection to imposition of US law on Canadian citizens doing business with
Cuba from Canada reached a high point in 2000 when US authorities threatened
to prosecute Burlington native Claude Gauthier, who had taken over Sabzali's
position following his move to Pennsylvania.
Given that Gauthier had never set foot in the US, then minister of foreign
affairs Lloyd Axworthy protested to the US State Department that indictment
of Gauthier would set "a dangerous precedent" to which Canada would "strongly
object."
In response, then Secretary of State Madeleine Albright issued a curt reply
terminating the US investigation of Gauthier. Canada's lack of subsequent
objection to prosecution of Sabzali fueled speculation that a deal had been
struck between Washington and Ottawa which left him without backing from his
government.
Canada's stance was signaled by a statement from Foreign Affairs spokesman
Reynald Doiron that "Mr. Sabzali knew pretty well when he moved to the US
that he might run the risk of being indicted."
"That's ridiculous," responded Sharon Moss, Sabzali's Canadian-born wife,
Thursday. "That means that nobody [from Canada] who's traveled to Cuba can
cross the US border."
Sabzali, who has two children, awaits the verdict on what he described as "a
tight leash," with his passport and house deed in US government hands. He is
restricted from traveling beyond a small corner of Pennsylvania.
Attorneys refused to speculate on the verdict. Observers were divided on the
possible outcome, although the sheer weight of the government's five-year
investigation is likely to factor into the decision.
--30--
==========================
Karen Lee Wald
2175 Aborn Road, apt. 164
San Jose, CA 95121
telephone 408-532-6147
[EMAIL PROTECTED]
Karen Lee Wald
2175 Aborn Road, apt. 164
San Jose, CA 95121
telephone 408-532-6147
[EMAIL PROTECTED]
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