1997-11-04 -- Gilbert Walz convicted for conspiracy.

Gilbert Walz, partner at Tech Support Systems and Countersurveill
ance, Inc., was convicted for conspiracy.

FOR IMMEDIATE RELEASE
NOVEMBER 4, 1997

     Michael J. Yamaguchi, United States Attorney for the
Northern District of California, announced today that late
yesterday afternoon Gilbert Walz, age 41, a partner at Tech
Support Systems and Countersurveillance, Inc., located in
Burlingame, California, was convicted for conspiracy, in
violation of 18 U.S.C.  371, and for selling and sending devices
whose design rendered them primarily useful for the surreptitious
interception of wire, oral, and electronic communications, in
violation of 18 U.S.C.  2512.  The indictment charged Walz with
one count of conspiracy and two violations of Section 2512
(sending and selling interception devices in interstate
commerce).
     After a two-week trial before District Judge James Ware in
San Jose, California, the jury returned its verdicts, convicting
Walz of all counts, after a little more than two hours of
deliberation.
     The indictment alleged that the device, known as a Cellmate,
was designed for the primary use of surreptitious interception
and recording of cellular telephone calls without the permission
or knowledge of the participates of a cellular telephone
conversation.  The Cellmate is a portable device which fits in a
briefcase; it generally consists of an altered cellular
telephone, a decoder and tape recorder.  The Cellmate is capable
of specifically targeting a particular cellular telephone number
for interception.  The Cellmate also has the capability of
scanning the air waves for cellular telephone numbers to
intercept.
     At trial, the government argued that the Cellmate was
dangerous to law enforcement because it could be used by persons
to compromise undercover operations and law enforcement
investigations; the device was dangerous to businesses, such as
Wall Street and Silicon Valley firms, because it could be used
for industrial espionage; and the device was dangerous to the
general public because the Cellmate could be used to invade
private conversations.
     Section 2512 lawfully permits the sale of these interception
devices to United States Government agencies and to providers of
communications services (such as telephone companies or cellular
providers).  The charges contained in the indictment related to
sales in March 1997 to another person in the United States who
was not associated with the government or a provider of
communications services.  Documents produced at trial indicated
that Walz and Tech Support Systems sold Cellmate devices
throughout the world, including foreign companies and
governments, and U.S. businesses, such as the Spy Factory, which
recently plead guilty in the Southern District of New York for
violations of federal law.
     This criminal investigation was conducted by the San
Francisco Office of the United States Customs Service.  Experts
from the United States Secret Service offices in Washington D.C.
and New York provided assistance in the trial of this case.
     Walz is scheduled to be sentenced on February 4, 1998.  He
faces a statutory maximum sentence of five years imprisonment and
$250,000 fine for each of his convictions.
     Questions regarding this matter can be directed to Assistant
United States Attorney, Carlos Singh, of the United States
Attorneyþs Office in San Joe, (408)535-5065, who prosecuted the
governmentþs case.

U.S. Attorney for the Northern District of California
Michael J. Yamaguchi, United States Attorney
450 Golden Gate Avenue, 11th Floor
San Francisco, CA 94102
Main Office Number: 415-436-7200

Public Affairs Office: 415-436-7247; fax: 415-436-7234
Stephen A. Shefler: FAUSA and Public Information Officer
sshefler@justice.usdoj.gov
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