Multi-agency investigation leads to San Diego resident’s arrest, indictment for violating federal import laws following ICE HSI investigation
SAN DIEGO – A multi-agency investigation on federal export laws targeting the former owner of a San Diego-based company that provides tungsten fragments, sub-assemblies, and other weapon grade components for United States military contracts, was unsealed following his indictment March 4. U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Defense Criminal Investigative Services, U.S. Army, Criminal Investigation Division, National Security Division, and the Department of Justice began the probe in November 2017.
Joe Sery, the former owner and chief executive officer of Tungsten Heavy Powder & Parts (THPP), and his brother, Dror Sery, are charged with violations of federal export laws pursuant to the International Traffic in Arms Regulations (ITAR).
According to the indictment, between Jan. 1, 2016, and Dec. 12, 2019, Sery entered into contracts with various aerospace and defense companies on behalf of THPP. Sery then obtained ITAR-controlled technical data and drawings from these companies to allow THPP to fulfill the contracted order. Some of THPP’s projects included the construction of an Advanced Rapid Response Weapon, a 155-millimeter Bi-Modal Warhead, a R9E Warhead, and an 81-millimeter Cowling Cone. These drawings contained information, which is required for the design, development, production, manufacture, assembly, operation, repair, testing, maintenance, or modification of defense articles.
“This arrest highlights the outstanding partnerships between HSI and the Department of Defense’s investigative agencies who work tirelessly every day to ensure our protected military technology and weaponry are not used by foreign actors against our warfighters and allies on the battlefield,” said HSI San Diego Special Agent in Charge Chad Plantz. “This arrest sends a clear message that those entrusted with our country’s military technology and weaponry will be held responsible for its safeguarding.”
The indictment further alleges that Sery and his brother Dror Sery accomplished this, in part, by creating a non-THPP email address to surreptitiously receive ITAR-controlled documents. Additionally, shortly after Dror created the outside email address Joe Sery provided Dror Sery with administrative level access of THPP’s “ShareFile system,” which contained ITAR-controlled data. Subsequently, on several occasions, Joe Sery and Dror Sery exported technical drawings from the United States via email messages to each other, including while Dror was located in India and the People’s Republic of China.
Despite being educated and trained regarding the requirements of ITAR, Joe Sery and his brother Dror Sery – a foreign national and dual citizen of Israel and South Africa – knowingly and willfully exported from the United States to the People’s Republic of China, the Republic of India and elsewhere overseas, defense articles covered by the United States Munitions List without first obtaining permission from the United States Department of State’s Directorate of Defense Trade Controls.
“The indictment alleges that these brothers disregarded important regulations designed to keep sensitive information from falling into the hands of those who would harm America,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office will work together with our law enforcement partners to protect military technology.” Grossman thanked the prosecution team, HSI and DCIS for their excellent work on this case.
“Mr. Sery is accused of compromising sensitive defense technology, and today’s arrest is an important step toward protecting our country’s information,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS will always take aggressive action with our law enforcement partners to deter and investigate any such threats to our national defense.”
Joe Sery is expected to be arraigned in federal court on Monday March 7, an arrest warrant has been issued for fugitive Dror Sery. He is believed to be residing in Israel.
THPP is cooperating with the investigation.
HSI is the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of over 10,400 employees consists of more than 7,100 special agents assigned to 220 cities throughout the United States, and 80 overseas locations in 53 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.
Learn more about HSI’s mission @HSISanDiego.
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