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Missouri national guardsman, Defense Department subcontractors accused of plot to steal, sell military gear

The subcontractors were hired to destroy and scrap military property, but investigators said they went through the equipment and sold some of it instead

ST. CLAIR COUNTY, Ill. — A member of the Missouri National Guard and two men who were subcontractors hired to destroy and recycle sensitive equipment were indicted on charges of stealing military property to sell it.

According to a press release from the Department of Justice, Brandon Schulte, a guardsman from Jefferson City, is accused of working with Jody and Gary Stambaugh, the co-owners of an Illinois scrap metal company, to steal and sell property of the U.S. Department of Defense.

The Stambaughs are accused of removing truckloads of property from the facilities but then sorting through the items to see what they could use or sell through a person who was not named. The indictment said they provided that person with LED video screens, a high-frequency radio, military night vision sights, a military antenna system, military flight helmets, and a military infrared thermal imager from January to October of 2017.

Jody and Gary Stambaugh were co-owners of Stambaugh Enterprises, a scrap metal company subcontracted to pick up, transport and recycle scrap metal items from facilities including Scott Air Force Base and a Missouri National Guard facility in Jefferson City. As part of the contract, they were to destroy all property and were "prohibited from reusing or refurbishing any military items for their own use or selling any military items to be reused or refurbished by someone else."

In addition to materials they received in scrap piles, the indictment alleges Brandon Schulte provided them with thousands of pounds of military items and other sensitive materials that they were not authorized to receive. The indictment said Schulte knew they were not allowed to receive that property.

"The indictment charges that Schulte understood he was required to follow specific procedures to dispose of sensitive military items, including uniforms, the press release said. "Such procedures are vital to national security, as terrorist groups overseas have previously acquired U.S. combat uniforms and used them to impersonate American soldiers, endangering American troops."

The indictment said the Stambaughs also falsified "certificates of destruction" for the stolen gear.

Jody Stambaugh, 50, and Gary Stambaugh, 77, were each charged with three counts of theft and one count of conspiracy. Schulte was charged with conspiracy and making a false statement. All three are due in court for their initial appearances and arraignments on Sept. 1.

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