COUNT FOUR
The SPECIAL FEBRUARY 2002-1 GRAND JURY further charges:
1. The allegations in paragraph 1 of Count One of this indictment are hereby

realleged and incorporated herein by reference.

2. On or about September 1, 1998, at Wood Dale, in the Northern District of

Illinois, Eastern Division, and elsewhere,

LAVERN MILLER and
STOELTING COMPANY,

defendants hercin, knowingly and willfully exported, from the United States to the People’s
Republic of China, specially designed polygraph parts and accessorics, namely, three
Pncumotrace Respiration Sensors, which items were designated on the Commerce Control
List, without having first obtained an export Jicense from the U.S. Department of Commerce;

In violation of Title 50, United States Code, Section 1705(b), and Title 15, Code of

Federal Regulations, Sections 764.2(a) and 764.2(e).

A TRUE BILL:

OREP SON

UNITED na i ATTORNEY



COUNT THREE

The SPECIAL FEBRUARY 2002-1 GRAND JURY further charges:

1. The allegations in paragraph 1 of Count One of this indictment are hereby
realleged and incorporated herein by reference.

2. On or about February 5, 1998, at Wood Dale, in the Northern District of
{llinois, Eastern Division, and elsewhere,

LAVERN MILLER and
STOELTING COMPANY,

defendants herein, knowingly and willfully exported, from the United States to the People’s
Republic of China, specially designed polygraph parts and accessories, namely, 4
Computerized Polygraph System bottom cover and boards, which items were designated on
the Commerce Control List, without having first obtained an export license from the U.S.
Department of Commerce;

In violation of Title 50, United States Code, Section 1705(b), and Title 15, Code of

Federal Regulations, Sections 764.2(a) and 764.2(e).



No. 39 GJ 395

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION

UNITED STATES OF AMERICA

vs.

LAVERN MILLER and
STCELTING COMPANY

INDICTMENT

Violations: Title 50, United States
Code, Section 1705(b); Title
15, Code of Federal
Regulations, Sections
764.2(a}, 764.2(c), and
764.2(e)

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UNITED STATES DISTRICT COURT ber tuk
NORTHERN DISTRICT OF ILLINOIS MICHAEL Wo DU:
EASTERN DIVISION CLERK, U.S. DISTRO:

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Violations: Title 50, United

UNITED STATES OF AMERICA )
)
)
) States Code, Section 1705(b);
)
)

v.

LAVERN MILLER and
STOELTING COMPANY

Title 15, Code of Federal Regulations,
Sections 764.2(a), 764,2(c), and 764.2(e)

JUDGE SHADUR

OUNT ONE
MAGISTRATE JUDGE LEY
The SPECIAL FEBRUARY 2002-1 GRAND JURY charges: Lp
Noy Mey

t. At times relevant to this indictment: ”
AC
(a) The U.S. Department of Commerce was authorized to regulate the

exportation of commodities, technology, and software pursuant to the provisions of the
Export Administration Act of 1979, as amended, Title 50, United States Code Appendix,
Section 2401 ez seq., and the Export Administration Regulations, Title 15, Code of Federal
Regulations, Section 730.1 ef seq. Between August 21, 1994 and November 12, 2000, the
Export Administration Act was in lapse, During that period, the President continued the
Export Administration Regulations in full force and effect pursuant to Executive Order
12924 and successive Presidential Notices, which he issucd pursuant to the provisions of the
International Emergency Economic Powers Act, Title 50, United States Code, Section 1701
et seq.

(b) Pursuant to its regulatory authority, the U.S. Department of Commerce

established and maintained a “Commerce Control! List,” listing specific items whose


exportation was licensed, regulated, or prohibited. Among the items listed on the Commerce
Control List were polygraph machines and specially designed parts and accessories, which
could not be exported to certain specified countries, including the People’s Republic of
China, without a license jssued by the U.S. Department of Commerce,

(c) Defendant LAVERN MILLER was the chief executive officer and
chairman of the board of defendant STOELTING COMPANY, a manufacturer of polygraph
machines, among other things, located at 620 Wheat Lane, Wood Dale, Tiinois.

2. On or about March 5, 1999, at Wood Dale, in the Northern District of Illinois,
astern Division, and elsewhere,

LAVERN MILLER and
STOELTING COMPANY,

defendants herein, knowingly and willfully attempted to export, from the United States to the
People’s Republic of China, items which were designated on the Commerce Control List,
namely, three polygraph machines and specially designed parts and accessories valued at
approximately $13,500, without having first obtained an export license from the U.S.
Department of Commerce, defendants then knowing that such polygraph machines were
destined for the People’s Republic of China;

In violation of Title 50, United States Code, Section 1705(b), and Title 15, Code of

Federal Regulations, Sections 764.2(a), 764.2(c), and 764.2(e).


COUNT TWO
The SPECIAL FEBRUARY 2002-1 GRAND JURY further charges:
1. The allegations in paragraph 1 of Count One of this indictment are hereby
realleged and incorporated herein by reference.
2. On or about January 29, 1998, at Wood Dale, in the Northern District of
Illinois, Eastern Division, and elsewhere,

LAVERN MILLER and
STOELTING COMPANY,

defendants herein, knowingly and willfully exported, from the United States to the People’s
Republic of China, a specially designed polygraph part and accessory, namely, a
Computerized Polygraph System top board, which item was designated on the Commerce
Control List, without having first obtained an export license from the U.S. Department of

Commerce;

In violation of Title 50, United States Code, Section 1705(b), and Title 15, Code of

Federal Regulations, Sections 764.2(a) and 764.2(¢).