A Lexington company known for supplying uniforms and protective equipment to police, paramedics and soldiers was raided yesterday by federal agents apparently seeking records of sales to foreign buyers.
Agents from several organizations arrived with search warrants at Galls Inc.'s two Lexington locations -- Palumbo Drive and Russell Cave Road -- about 9 a.m.
The agents, accompanied by Kentucky State Police, declined to say what they were seeking but were observed removing computer equipment and paper records.
The raid, however, drew intense public attention, with television reports throughout the day and inquiries and speculation by employees, passersby and workers at nearby businesses.
Galls' parent company, Aramark Corp., said in a statement that "Galls was contacted today by agents of the Department of Commerce ... in connection with its record-keeping and documentation of certain export sales."
Aramark spokeswoman Kristine Grow declined to say what type of equipment or buyer might have prompted the raid, but she said Galls was cooperating.
It is not likely to be clear what prompted the raid until the affidavit used to obtain the search warrant is made public. In Washington, D.C., Principal Assistant U.S. Attorney Channing Phillips said the affidavit will be released as soon as the search ends, possibly today.
The affidavit, which was presented to a federal judge to justify the search, should explain why the warrant was issued and what the agents were seeking. Any seized documents could be used to obtain indictments against Galls, its employees or others if wrongdoing is found.
Agents came from U.S. Immigration and Customs Enforcement in the Department of Homeland Security, the Commerce Department's Bureau of Industry and Security, and the Defense Department's Criminal Investigative Service, according to the Associated Press.
Several of the federal vehicles at the Palumbo Drive Galls had Virginia license plates.
No arrests or injuries were reported.
A similar raid at another Lexington company, Kelco Inc., produced indictments against Kelco, a sister company and three executives in 2002. All five were convicted, although the executives have appeals pending.
Galls sells many types of military and public service uniforms as well as medical equipment, body armor, night-vision devices and telescopic sights for military rifles.
Grow said Galls' four California stores, which are based in San Diego, were not raided yesterday.
Grow declined to disclose Galls' annual sales, but she said the total was only 2 percent of Aramark's $9.9 billion in sales for 2003. Sales to foreign buyers produce only 5 percent of Galls' revenues, she said.
Customers were not permitted to enter the Galls locations during yesterday's search. Callers to the company's mail-order number at midday yesterday heard a recording that said: "We are currently experiencing technical difficulties. We expect to resume our service in one hour. Please call us then."
Galls' operators were back on duty by late afternoon, indicating that the raid was over.
The company has 800 employees, Grow said, including 600 in Lexington, where it was founded. Galls was sold to Aramark in 1995.
Many Galls employees gathered outside their workplaces while the search went on inside. Several said they had not been told what was happening, but they declined to give reporters their names.
In addition to its retail outlets, Galls bills itself as the world's largest mail-order supplier of public safety equipment.
Although they have a common predecessor company, Galls is not connected to Phillip Gall's Outdoor and Ski in the Woodhill Shopping Center. That store is owned by Steven Gall.
Photo: A Kentucky State Police Trooper walks in front of Galls Incorporated on Palumbo Drive in Lexington, Ky., Wednesday, July 21, 2004, as federal authorities served a search warrant at the company which sells equipment for law enforcement, fire and emergency workers. A spokesman for Immigration and Customs Enforcement declined to say what federal officers were looking for, saying the search warrant was sealed.
EARLIER STORIES/A.P.
A Lexington business that supplies military and police equipment worldwide was raided Wednesday by federal authorities, a spokesman for the U.S. attorney's office for Washington, D.C. said.
Several agencies executed a federal search warrant at Galls Inc. on Palumbo Drive in southeast Lexington, U.S. Attorney's office spokesman Channing Phillips said.
Agents from U.S. Immigration and Customs Enforcement at the Department of Homeland Security, criminal investigators from the Commerce Department Bureau of Industry and Security and agents from the Defense Department Criminal Investigative Service were serving a search warrant at the business, according to Dean Boyd, a spokesman for Immigration and Customs Enforcement.
The three agencies typically investigate cases involving unauthorized exports. Phillips declined to say what federal officers were looking for, saying the search warrant was sealed.
A spokeswoman for Galls said the company is cooperating with the investigation.
"Galls was contacted today by agents of the department of commerce ... in connection with its record keeping and documentation of certain export sales," Kristine Grow, a Galls spokeswoman in Philadelphia, said Wednesday. She would not specify what type of export was in question.
Grow said the warrant also covered a nearby distribution center in north Lexington.
Galls is the world's largest mail-order supplier of uniforms and equipment to public safety professionals, according to its Web site. The site says it distributes equipment such as night vision goggles and bulletproof vests.
The Lexington store has been in business for 35 years. Galls has two other locations in California, according to its Web site.
Phillips said the raid involved only the Lexington locations, which employ about 600 of Galls' total of 800 workers.
Calls to Galls in Lexington were greeted Wednesday with a recorded message saying the company was "experiencing technical difficulties." Grow said the company is working to get the store operational.
Outside Galls, employee Adarrell Owsley told The Associated Press that agents arrived about 8:30 a.m. EDT and told employees to go to one area of the building and stay there.
Owsley said employees were not given any details about what was going on.
He said some employees were sent home shortly after noon Wednesday, but others remained at the building through the work day, either staying inside or sitting outside on tables in break areas.
Charlotte Kirk, an employee at a self-storage business next door to Galls' headquarters, said it's common to see police cars in the parking lot.
But she noticed something unusual when she looked out her window Wednesday morning. She said she saw two people come out of Galls dressed in black and wearing vests that said "SWAT." Then, she saw two or three other people go inside carrying red bags.
"There may be police going back and forth to the catalog showroom, but never out front," Kirk said.
Customers who came to Galls on Wednesday were told the business was closed and would be open Thursday.
"They didn't elaborate on why," said Roy Vandiver, a volunteer firefighter with the Pleasure Ridge Park department in Louisville.
Vandiver said he'd shopped at Galls for nine years.
"I like them," he said. "They've got a good business and I've never had problems with them."
WLEX-TV, Lexington, Kentucky
A Lexington business that supplies military and police equipment was raided Wednesday by federal authorities, a spokesman for the U.S. attorney's office for Washington, D.C. said.
Several agencies executed a federal search warrants at Galls Inc. at their corporate offices on Palumbo Drive and at the factory/showroom on Russell Cave Road, U.S. Attorney's office spokesman Channing Phillips said.
Agents from U.S. Immigration and Customs Enforcement at the Department of Homeland Security, criminal investigators from the Commerce Department Bureau of Industry and Security and agents from the Defense Department Criminal Investigative Service were serving a search warrant at the business, according to Dean Boyd, a spokesman for Immigration and Customs Enforcement.
The three agencies typically investigate cases involving unauthorized exports. Phillips declined to say what federal officers were looking for, saying the search warrant was sealed.
Galls is the world's largest mail-order supplier of uniforms and equipment to public safety professionals, according to its Web site. The site says it distributes equipment such as night vision goggles and bulletproof vests.
The Lexington store has been in business for 35 years. Galls has two other locations in California, according to its Web site.
Phillips said the raid involved only the Lexington locations.
Officials at Aramark, parent company of Galls, were not immediately available for comment. Calls to Galls in Lexington were greeted Wednesday with a recorded message saying the company was "experiencing technical difficulties."
Outside Galls, employee Adarrell Owsley told The Associated Press that agents arrived about 8:30 a.m. EDT and told employees to go to one area of the building and stay there.
Owsley said employees were not given any details about what was going on. He said it was "a bunch of people in blue shirts."
Owsley said he was told to come back to work Thursday.
WKYT-TV, Lexington, Kentucky
27 Newsfirst has learned federal law enforcement authorities are investigating a Lexington business.
Agents executed search warrants at Galls Incorporated on Palumbo Drive and a warehouse on Russell Cave Road.
Galls is a national supplier of police and emergency services equipment.
Among the agencies involved in the investigation are the Homeland Security Cabinet and the Department of Defense. A spokesman for the U.S. Attorney's office tells 27 NEWSFIRST, Federal officials are investigating whether the company had a license to send gear to restricted countries. They're also looking into any wrongdoing by company employees.
Employees were told to go home for the day. Federal agents kept supervisors inside.
The search is expected to last for much of the day.
At the Russell Cave location, an employee watched Federal Agents and State Police go in and out of the warehouse. She says she has no idea what was going on and when she went into work, everything seemed normal.