Updated 04/10/01

United States Attorney General’s office launched surprise inspections
Targeted are manufacturers and distributors
of CCTV equipment with covert audio capabilities
Source: Security Industry of America (SIA)

Table of Contents

• Member Advisory
• Attachments:

• Letter from Chwatt & Company
• U. S. Code

• Sec. 2512
• Sec. 2513

If your company manufacturers, assembles, possesses or sells any CCTV equipment that incorporates COVERT AUDIO Capabilities, you SHOULD read the following advisory.

During the week of November 8, 1999, the United States Attorney General’s office launched a series of surprise inspections targeted against the manufacturers and distributors of CCTV equipment possessing COVERT AUDIO capabilities.

SIA has come to understand that these surprise inspections are part of an overall nation-wide investigation to be implemented the each state’s respective Attorneys General’s Office.

The impetus for this investigation appears to be rooted in the Justice Department’s uncovering of alleged violations, by the manufacturers and distributors of CCTV equipment, of US Wiretapping Laws, particularly section 2512 (b) of Title 18 of the US Code.

Of particular interest to the Attorney General’s office are products that are designed to intentionally mislead as to their true purpose, such as CCTV cameras with covert audio capabilities.

Our source at the Justice Department has advised us to notify our members of the on-going investigation and to have our members contact their legal counsel regarding the case law surrounding this issue.

It should be noted that the Justice Department is not seeking to hide this investigation after the surprise “visits” of last week, but it also has no plans to offer advance warning to any manufacturers or distributors of this type of CCTV technology prior to showing up at their door with a search warrant.

SIA will be following this investigation and forwarding information as soon as it becomes available and has been verified to be accurate. If you have any questions, please do not hesitate to contact Richard Chace at 703/683-0392 or e-mail at rchace@siaonline.org.

CHWAT & COMPANY, INC.
635 SLATERS LANE, SUITE 140
ALEXANDRIA. VA 22314
(703) 684-7703
FAX (703) 684-7594

Scott Bizub
MANAGER, GOVERNMENT RELATIONS

MEMORANDUM

To: Richard Chace, Assistant Executive Director SIA

From: Scott Bizub

Date: November 17,1999

Subject: Justice Department

As you requested, late last night we contacted the Criminal Division of the U.S. Justice Department on the "raids" conducted against distributors and other manufacturers on their video / audio equipment in New York and Virginia. Our goal was to contact someone within the division who was knowledgeable on this issue.

We were able to discuss this matter with an official in the Office of Enforcement Operations within the Criminal Division who confirmed that this is an area of interest to the Attorney General and the U.S. Attorneys around the country. He referred us to the two attached sections of Title 18 of the U.S. Code and discussed at length with us Section 2512 (b), which forms the basis of their investigation. He recommends that members of SIA, and others, contact their attorney regarding the raids, charges, and case law surrounding this issue. He indicated that there was some significant Southern district of New York "spy shop" cases dealing with this specific Section 2512 of Title 18 of the U.S. Code.

It might be helpful if the association's attorney reviewed the case law for members in this regard, perhaps a legal advisory or the like.

US Code as of: 01/26/98

Sec. 2512. Manufacture, distribution, possession, and advertising of wire, oral, or electronic communication intercepting devices prohibited

(1) Except as otherwise specifically provided in this chapter, any person who intentionally -

(a) sends through the mail, or sends or carries in interstate or foreign commerce, any electronic, mechanical, or other device, knowing or having reason to know that the design of such device renders it primarily useful for the purpose of the surreptitious interception of wire, oral, or electronic communications;

(b) manufactures, assembles, possesses, or sells any electronic, mechanical, or other device, knowing or having reason to know that the design of such device renders it primarily useful for the purpose of the surreptitious interception of wire, oral, or electronic communications, and that such device or any component thereof has been or will be sent through the mail or transported in interstate or foreign commerce, or o(c) places in any newspaper, magazine, handbill, or other publication any advertisement of 

(i) any electronic, mechanical, or other device knowing or having reason to know that the design of such device renders it primarily useful for the purpose of the surreptitious interception of wire, oral, or electronic communications; or

(ii) any other electronic, mechanical, or other device, where such advertisement promotes the use of such device for the purpose of the surreptitious interception of wire, oral, or electronic communications, knowing or having reason to know that such advertisement will be sent through the mal I or transported in interstate or foreign commerce, shall be fined under this title or imprisoned not more than five years, or both.

(2) It shall not be unlawful under this section for 

(a) a provider of wire or electronic communication service or an officer, agent, or employee of, or a person under contract with, such a provider, in the normal course of the business of providing that wire or electronic communication service, or

(b) an officer, agent, or employee of, or a person under contract with, the United States, a State, or a political subdivision thereof, in the normal course of the activities of the United States, a State, or a political subdivision thereof, to send through the mail, send or carry in interstate or foreign commerce, or manufacture, assemble, possess, or sell any electronic, mechanical, or other device knowing or having reason to know that the design of such device renders it primarily useful for the purpose of the surreptitious interception of wire, oral, or electronic communications.

(3) It shall not be unlawful under this section to advertise for sale a device described in subsection (1) of this section
if the advertisement is mailed, sent, or carried in interstate or foreign commerce solely to a domestic provider of wire or electronic communication service or to an agency of the United States, a State, or a political subdivision thereof which is duly authorized to use such device.

US Code as of: 01/26/98

Sec. 2513. Confiscation of wire, oral, or electronic communication intercepting devices

Any electronic, mechanical, or other device used, sent, carried, manufactured, assembled, possessed, sold, or advertised in violation of section 2511 or section 2512 of this chapter may be seized and forfeited to the United States. All provisions of law relating to

(1) the seizure, summary and judicial forfeiture, and condemnation of vessels, vehicles, merchandise, and baggage for violations of the customs laws contained in title 19 of the United States Code,

(2) the disposition of such vessels, vehicles, merchandise, and baggage or the proceeds from the sale thereof,

(3) the remission or mitigation of such forfeiture,

(4) the compromise of claims, and

(5) the award of compensation to informers in respect of such forfeitures, shall apply to seizures and forfeitures incurred, or alleged to have been incurred, under the provisions of this section, insofar as applicable and not inconsistent with the provisions of this section; except that such duties as are imposed upon the collector of customs or any other person with respect to the seizure and forfeiture of vessels, vehicles, merchandise, and baggage under the provisions of the customs laws contained in title 19 of the United States Code shall be performed with respect to seizure and forfeiture of electronic, mechanical, or other intercepting devices under this section by such officers, agents, or other persons as may be authorized or designated for that purpose by the Attorney General.q

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