Hank Investigates: Trading with Terrorists

In a secret room in an East Coast building, hidden cameras capture the evidence as a black market deal begins.

Surveillance Video
"Our parent company in Boston…"

This man is actually a federal agent, but he's now on a covert mission, posing as a high-tech equipment salesman.

This man's the target, Iraqi immigrant Fadhi Boutros, he's a suspected arms trader and carrying this shopping list of illicit weapons.

The sting -- Boutros thinks he's about to purchase military-grade U.S.-made night vision goggles for Iraqi soldiers. It’s a deal he knows is illegal. Instead, Boutros is arrested and soon convicted of conspiracy.

This Agent, now no longer undercover, knows what happens when the wrong items get to the wrong people.

Special Agent Brian Conboy, U.S. Immigration and Customs Enforcement
"When the foreign adversary gets these parts, they can use them against us."

And our investigation finds, while valiant soldiers fight the war overseas, a highly-trained group of federal agents fights a sinister battle closer to home. A battle to keep American-made equipment from being sold to the enemy.

Special Agent Daniel Supnick, U.S. Immigration and Customs Enforcement
"Illegal exports account for a good deal of the technology that is helping terrorist sponsored nations manufacture weapons of war that can attack us."

What’s more, government documents that we obtained reveal New England companies with their cutting edge technology and sophisticated systems are being targeted by terrorists in search of supplies.

Hank Phillippi Ryan, Investigative Reporter
"So New England is a place you’re focusing on?"

Assistant Secretary Michael Garcia, U.S. Immigration and Customs Enforcement
"It’s an area where high-tech goods are produced. You're going to see shoppers. You’re going to see people looking for those items."

Items so sensitive the feds require companies get special licenses to export them. Some specific products are tightly controlled and some countries and buyers are off limits as purchasers.

But with huge profits and high demand, it’s a marketplace where the bad guys aren’t always easy to identify.

Here inside a U.S. warehouse, surveillance video we obtained shows arms buyers trying to buy a stinger missile and ship it to Serbia, a clear export violation.

But here's where the black market gets dicey, a GPS navigation system, like the one in your car, could also be used for missile guidance. Switches used to activate medical equipment can also trigger a bomb. So in airports, seaports and warehouses a federal task force now targets suspicious buyers.

Special Agent Donna DeGrande, U.S. Immigration and Customs Enforcement
"They're buying it for someone else. Who are they buying it for, where's it going, what's it going to be used for?"

Just last year a Haverhill company was indicted for illegally exporting missile technology to China, other local cases: a Lexington company fined millions for trying to sell communications gear to Pakistan; a Gloucester company convicted of selling fighter jet parts to Iran.

But priority is -- stop illegal shipments before they cross the border.

Hank Phillippi Ryan, Investigative Reporter
"…or else?"

Assistant Secretary Michael Garcia, U.S. Immigration and Customs Enforcement
"We could have something come back and cause havoc here."

We have learned that dozens of such questionable sales are under investigation right now. It’s a 24/7 mission with New England companies on the front lines.

Special Agent Daniel Supnick, U.S. Immigration and Customs Enforcement
"It is only with their full cooperation that we are as successful as we are in protecting America."

U.S. customs and immigration enforcement agents say it’s key that companies report suspicious activity at the earliest moment, they know that one phone call may save lives.

For more information on the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) or to report a suspicious order or shipment click here: www.ice.gov