International Arms Exporter Sentenced To Prison

DENVER – Katherine O'Neal, age 43, a former member of the United States Army stationed at Fort Carson, was sentenced today by U.S. District Court Judge William J. Martinez to serve 36 months in federal prison, followed by 3 years on supervised release for smuggling goods from the United States, specifically exporting firearms to the Dominican Republic.  The U.S. Attorney’s Office was joined by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

On September 1, 2015 a federal grand jury indicted O’Neal for numerous firearm and illegal financing type charges.  A superseding indictment was handed down on November 20, 2016, with a second superseding indictment returned on December 5, 2017.  A jury found O’Neal guilty on March 6, 2018.  O'Neal was acquitted on other counts alleging false information on firearm purchase forms and money laundering.

At trial, before United States District Court Judge William J. Martinez, the Government introduced evidence showing that O'Neal made multiple trips to the Dominican Republic shortly after purchasing firearms in Denver and Colorado Springs, including one trip where she flew from Denver to the Dominican Republic with 11 firearms in her luggage in early June 2015.  She declared the firearms to the airline, but did not obtain the required State Department export license.  Her bags had been misdirected by the airline and were not on her flight.  When the bags arrived later, Dominican Republic officials noticed the handguns during an examination of the baggage.  When she arrived at the airport to claim her luggage, she was arrested.  The Dominican Republic has a ban on all imported firearms.   A Denver jury found her guilty of violating 18 U.S.C. § 554(a), which prohibits smuggling goods from the United States.

“Illegally exporting firearms comes with stiff consequences,” said U.S. Attorney Bob Troyer.  “Her consequence was 3 years in federal prison.”

“This is a prime example of how greed and an opportunity to make a quick profit motivate some people to criminal actions,” said Steven Cagen, Special Agent in Charge of HSI Denver.  “With 67 offices located in 50 countries, HSI is especially well-equipped to investigate criminal cases around the world.”

“This case was a coordinated effort to put a firearms trafficker behind bars,” ATF Denver Special Agent in Charge Debbie Livingston said. “She is very deserving of this sentence.”

The case was investigated by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations and the Bureau of Alcohol, Tobacco and Firearms, as well as the Dominican Republic, where charges are pending her extradition to that country.

Assistant United States Attorneys Robert Brown and Kurt Bohn are prosecuting this matter for the United States.