Company Guilty Of Selling Spy Tools Spy Factory Illegally Sold Wiretapping Devices, Tiny Transmitters

Spy Factory, a national chain of stores selling personal protection items, tells consumers on its Internet site that it is dedicated to selling “unique and exclusive security products for the general public,” including hidden safes, auto alarms, recording devices and bug detectors.

But the owner of the 12-store chain and two top executives of the company pleaded guilty Monday to illegally selling wiretapping and bugging devices. In other words, they were supplying the spies, not those spied upon.

Spy Factory smuggled thousands of bugging devices into the country, including tiny transmitters hidden in ballpoint pens, calculators, electrical outlet adapters and tiny black boxes that could be hidden under desks, prosecutors said. It sold wiretapping devices that attach to telephone lines and can transmit both sides of a conversation.

The devices were used by suspicious business partners, business competitors and jealous lovers.

The company and its officials entered a guilty plea on 69 counts of money laundering, smuggling, selling illegal bugging and wiretapping devices, and conspiracy. The owner could receive up to five years.

Spy Factory’s operations have been shut down and its 12 stores, padlocked. Owner Ronald Kimball agreed to forfeit $2.3 million in proceeds from sales.

Under federal law, it is illegal to intentionally possess, manufacture, sell or use such devices. The only exceptions are the telephone company and government agencies.