Export Privileges Revoked Following Illegal Firearm Exports to Australia

Sept. 21st, 2021

On September 14, 2021, the Bureau of Industry and Security (BIS) revoked the export privileges of a Chilton, Wisconsin, man after he illegally exported various firearms and firearm components in violations of Section 38 of the Arms Export Control Act (AECA). The move follows a December 13, 2019, conviction in the US District Court for the Eastern District of Wisconsin in which Andy Lloyd Huebschmann, the former owner of Thureon Defense LLC., was sentenced to two years in prison, one year of supervised release, a $15,000 criminal fine and a $100 assessment. Huebschmann’s export privileges have now been revoked until December 13, 2029.

The conviction and subsequent denial of export privileges relates to a series of unlicensed firearm exports from Huebschmann in Wisconsin to Paul Munro in Australia. While Huebschmann was registered with the Directorate of Defense Trade Controls (DDTC) as a manufacturer and/or exporter defense articles, as required by Section 122.1 of the International Traffic in Arms Regulations (ITAR), the exports nonetheless required prior DDTC authorization in the form of a DSP-5 license. Huebschmann not only failed to obtain required DDTC authorization but reportedly took affirmative steps to conceal the true nature of the exports in hopes of evading US and Australian authorities.

According to a 2019 plea agreement, Huebschmann agreed to illegally ship firearms from Wisconsin to Munro in Australia after the two men met at a gun show in Las Vegas, NV. Following the encounter, Munro constructed crates containing a hidden compartment designed to pack and conceal the various firearm components. Munro delivered the shipping crates to Huebschmann in Wisconsin, following which Huebschmann proceeded to illegally ship the firearm kits which contained parts for semi-automatic and fully automatic triggers, frames, and slides. In 2015 Munro later requested that Huebschmann begin manufacturing firearms without serial numbers or “Thureon” branding.

The schemed continued undetected for several years until Australian authorities recovered a Huebschmann-manufactured fully automatic rifle at the scene of a 2016 high-profile armed robbery. Australian authorities arrested Munro after he later completed a deal to sell illegally imported Thureon firearms to an undercover Australian officer. Munro, who has now been sentenced to 10 years in Australian prison, reportedly paid Huebschmann $1,000 USD for each rifle kit and $2,000 USD per pack of pistol slides and frames. Australian news outlets have reported that Munro illegally sold the weapons inside of Australia for the equivalent of $5,000 to $15,000 USD. According to Australian authorities, numerous Thureon-imported guns, including fully automatic weapons, remain on Australian streets as a result of this scheme.

Huebschmann’s export privileges have now been revoked pursuant to Section 1760(e) of the Export Control Reform Act (ECRA). Under the ECRA export privileges may be revoked when a person is convicted of certain offenses, including Section 38 of the AECA, for a period of up to ten years from the date of his/her conviction. While the BIS provided Huebschmann with the opportunity to submit a written statement prior to revocation, as required by Section 766.25 of the EAR, Huebschmann reportedly did not submit a written submission within the allotted time.

If you have any questions regarding the ITAR, AECA, or EAR do not hesitate to contact an attorney at Barnes, Richardson & Colburn LLP.