Irrational Indictment & Imprisonment of Loyal Avionics Engineer

Irrational Indictment & Imprisonment

of a Loyal Avionics Engineer who

Used Commerce Instead of State Department Export Regulations

Indictment, Exile, Deportation, Plea Bargain, Imprisonment, Release on Probation, Freedom at Last

SUMMARY

Dr. Ernest Kelly was a well respected Avionics engineer who had worked for the Autonetics division of Rockwell International, a large US Aerospace company in California for over two decades until he formed his own small Aerospace Avionics consulting company called Milco International, Inc. Just before leaving the large Aerospace Company he had the assignment of finding business in the Middle East in Iran and Israel. During this time he met Dani Roto, a wealthy, politically well connected Israeli businessman who owned Heli Trading Company (HTC) in Tel Aviv. One day the Vice President to whom Ernest reported , offered him the Israeli business with Dani if Ernest would form his own company. The reason for this offer was that the Saudis were threatening to cancel Rockwell’s much larger contracts with them if Rockwell continued to do business with Israel.

Most of the items Dani ordered from Ernest’s company were considered Munitions Components and required a State Department Munitions Control Export License. In 1975 Dani ordered some electronic tubes called Krytrons, but before any tubes were delivered he suddenly canceled the order. The business between Dani’s and Ernest’s companies continued with the arrangement that Dani would receive 60% of the profit for each order in his Zurich numbered bank account and Ernest’s company would retain 40% of the profit for his firm. Dani and Ernest became good friends over the years with Dani visiting Ernest’s waterfront home in Huntington Harbour, California and Ernest attending Dani’s son’s Bar Mitzvah in Israel.

Ernest was delighted to start his own business which he named Milco International, Inc. After a short time Ernest was able to have Milco obtain Avionics consulting contracts with the USAF, NASA, US Aerospace Prime Contractors, and friendly foreign countries such as Taiwan.

In 1979, Dani ordered Krytrons again, saying they could be shipped under a Commerce Department export license. In 1982, shortly after the last of this new order of Krytrons was shipped, Ernest’s company Milco was burglarized. The burglar stole all of the company computers. Shortly after the burglary Dani had called Ernest and wanted to order more Krytons and was quite insistent that a Commerce License be used. Ernest explained that could not be done since the last invoice from the Krytron vendor had said a Munitions License was required. As a result of the burglary, Ernest was required to write a report to the FBI suggesting who might have done it, because of the secret contracts Milco held with the US military. Because Dani had been so insistent, Ernest mentioned in the FBI report that he had shipped Krytrons using a Commerce Department license.

Ernest would have forgotten about the FBI report and the Dani conversation except that three years later he received notice to appear in downtown Los Angeles to be interviewed by a Federal Prosecutor. He couldn’t understand what such a meeting could be about. He soon found out. The prosecutor said Ernest would be Indicted for illegally shipping Krytrons to Israel. Ernest was shocked. He believed that he had always been open with the US Government and had helped the USG in every way he knew how. He soon learned that in the US when Indicted of a Federal Crime, you are considered guilty. He had always believed one is innocent until proven guilty, but he quickly learned that was an old fashioned idea no longer true in the 20^th century when eager Federal Prosecutors bring all of the resources of the USG against those indicted to put them in Prison. Brian, a former attorney for Rockwell and a retired judge who was on Milco’s board of directors, warned Ernest: you will meet a part of the USG you didn’t know existed before – people that want to throw you into prison! Unfortunately Ernest did learn how US & Spanish Prisons work – from the inside!

Jon Schiller PhD, Author of Options Trading Books & Novels:

Insider’s Automatic Options Strategy

The 100% Return Options Trading Strategy

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Self Adaptive Options & Currency Trading

Multihulls – A Round The World Catamaran Race

Masada Never Again – The Israeli Quest for the A-bomb

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Self Adaptive Options & Currency Trading

This book is unique in that I, Jon Schiller, have direct access to Ernest Kelly who has just recently finished his prison sentence and probation and can freely communicate his experience with the global public.