United States Attorney Scott N. Schools announced that Spyderco, Inc., a Colorado corporation, pleaded guilty and was sentenced today to mailing butterfly knives, which are nonmailable, to pay a $75,000 criminal fine, a $125 special assessment, and to forfeit all such knives seized by the United States Immigration and Customs Enforcement from its corporate offices in Golden, Colorado (estimated to be valued at over $400,000). The guilty plea and sentence is the result of an investigation by United States Immigration and Customs Enforcement ("ICE").
In pleading guilty, Spyderco admitted that from June 2005 through January 2007, it had mailed butterfly knives, after importing the knife components from Taipei, Taiwan, through the Port of San Francisco and the Port of Oakland, to Golden, Colorado. The U.S. Customs and Border Patrol had issued a ruling to Spyderco holding that these knives fit the definition of "switchblade knives" as an imported knife "with a blade which opens automatically by operation of inertia, gravity, or both" and were therefore not allowed into the United States pursuant to the Switchblade Knife Act, 15 U.S.C. §§ 1241-1245, and were further not to be mailed in the United States.
Spyderco agreed to issue a Notice of Recall on its internet site for these butterfly knives and to mail this recall notice to reasonably identifiable customers. Spyderco also agreed not to import, transport, distribute, manufacture, sell, introduce, or attempt to introduce into interstate commerce knives defined as switchblades under the Switchblade Knife Act, in violation of the law.
The sentence was handed down by U.S. Magistrate Judge Wayne D. Brazil following the corporate guilty plea to one violation of Title 18, United States Code, Section 1716(j)(1), a class A misdemeanor.
Maureen Bessette is the Assistant U.S. Attorney who prosecuted the case with the assistance of Cynthia Daniel. The prosecution is the result of a one year investigation by the United States Immigration and Customs Enforcement.