June 10, 2004 – LAWFUEL – Marcos Daniel Jiménez, United States Attorney for the Southern District of Florida, Julie Myers, Assistant Secretary, Department of Commerce, Bureau of Industry and Security, and R. Richard Newcomb, Director of the Office of Foreign Assets Control
(OFAC), Department of the Treasury, announced today that a federal grand jury
sitting in Key West, Florida, returned a two-count Indictment charging defendants,
Peter Goldsmith and Michele Geslin.
The first count of the Indictment charges the
defendants with conspiring to violate the Trading with the Enemy Act from October
2000 through May 31, 2003, by providing, without a license, travel services to
other persons traveling to Cuba in connection with the Third Annual Conch Republic
Cup 2003 Race (the “Third Annual Conch Republic Cup”), and two prior races in 2000
and 2002, in violation of Title 18, United States Code, Section 371. The second
count of the Indictment charges the defendants with violating the Trading with the
Enemy Act, by providing, without a license, travel services to other persons
traveling to Cuba in connection with the Third Annual Conch Republic Cup, in
violation of Title 50, United States Code Appendix, Section 16(a).
If convicted on the first count of the Indictment, each defendant faces a maximum
term of imprisonment of five (5) years and a maximum fine of $250,000. If
convicted on the second count of the Indictment, each defendant faces a maximum
term of imprisonment of ten (10) years and a maximum fine of $100,000.
Since approximately 1962, as set forth in the Indictment, the United States has
maintained an economic embargo against Cuba through the enactment of various laws
and regulations that restrict trade and economic transactions with Cuba. As part
of this embargo, OFAC issued the Cuban Assets Control Regulations, which require
“travel service providers,” that is, persons who provide services to others in
connection with travel to and within Cuba, to have licenses issued to them by OFAC
authorizing them to engage in such activities. These regulations are enforceable
and subject to criminal penalties under the Trading with the Enemy Act, Title 50,
United States Code Appendix, Section 16(a). National security laws, like the
Trading with the Enemy Act, are in place to protect the people of the United
States, while hindering the endeavors of communist or oppressive regimes that
threaten the freedom-starved people of those countries.
According to the Indictment, Goldsmith and Geslin conspired to violate the Cuban
embargo by promoting, organizing, and administering sailboat races from Key West,
Florida, to Cuba, without being licensed or authorized by OFAC to provide travel
services to other persons traveling to Cuba. The Third Annual Conch Republic Cup,
which consisted of several sailboat races that took place between May 23, 2003, and
May 31, 2003, commenced and concluded in Key West, Florida, and included port of
calls and races in and around Varadero, Cuba, and Havana, Cuba. Approximately
fifteen (15) sailboats took part in the Third Annual Conch Republic Cup. Other
races from Key West to Cuba took place in November 2000 and May 2002. As charged
in the Indictment, Goldsmith and Geslin organized, administered, and operated these
races despite being notified by OFAC on a number of occasions starting in October
2000 that they were required to have an OFAC license in order to provide travel
services to other persons traveling to Cuba.
The United States Attorney’s Office is steadfast in upholding and enforcing our
national security laws to the fullest extent and will continue to work with the
Department of Treasury, the Department of Commerce and other agencies to
investigate and prosecute those who shirk them.
Mr. Jiménez commended the investigative efforts of the Department of Commerce and
the Department of the Treasury. The case is being prosecuted by Assistant United
States Attorneys Karen Gilbert and Harold Schimkat.
