Information Notice No. 79-02, Attempted Extortion - Low Enriched Uranium

IN79002 
                              UNITED STATES 
                      NUCLEAR REGULATORY COMMISSION 
                         WASHINGTON, D. C. 20555 
                                     
                             February 2, 1979 

MEMORANDUM FOR:     B. H. Grier, Director, RI 
                    J. P. O'Reilly, Director, RII 
                    J. G. Keppler, Director, RIII 
                    K. V. Seyfrit, Director, RIV 
                    R. H. Engelken, Director, RV 

FROM:               E. Morris Howard, Director Division of Safeguards 
                      Inspection, Office of Inspection and Enforcement 

SUBJECT:            Information Notice No. 79-02, ATTEMPTED EXTORTION -
                    LOW ENRICHED URANIUM 

The subject Information Notice No. is transmitted for issuance on February 2,
1979. The Information Notice should be issued to all fuel facilities 
licensed by NRC. Also, enclosed is a draft copy of the transmittal letter.  
No inspection followup is necessary since no action by the licensee is 
requested. We anticipate forwarding additional information when the final 
results of the FBI investigation are available. 


                                        E. Morris Howard 
                                        Director 
                                        Division of Safeguards Inspection 
                                        Office of Inspection and Enforcement

Enclosures: 
1.   Information Notice No. 79-02 
2.   Draft Transmittal Letter 

CONTACT: 
W. J. Ward, IE 
49-27650 
.

(Draft letter to all fuel facilities) 
                                           Information Notice No. 79-02 

Gentlemen: 

The enclosed Information Notice No. 79-02 is forwarded to you for 
information. No specific action is requested and no written response is 
required. If you desire additional information regarding this matter, please
contact this office. 

                                        Sincerely, 


                                        Signature 
                                        (Regional Director) 

Enclosures: 
1.   Information Notice No. 79-02 
2.   List of IE Information Notices 
       Issued in 1979
.

                             UNITED STATES 
                      NUCLEAR REGULATORY COMMISSION 
                   OFFICE OF INSPECTION AND ENFORCEMENT 
                          WASHINGTON, D.C. 20555 
                                     
                             February 2, 1979 

                                            Information Notice No. 79-02 

ATTEMPTED EXTORTION - LOW ENRICHED URANIUM 

Description of Circumstances: 

This notice provides information concerning an alleged theft of low-enriched
uranium from the General Electric plant in Wilmington, North Carolina. 

On Monday, January 29, 1979, the Plant manager received a letter demanding 
$100,000 for the return of the material purported to be stolen and which set
a deadline of February 1, 1979, for delivery of the money.  During the 
course of the week, the FBI conducted an intensive investigation leading to 
the arrest on February 1, 1979 of a temporary employee of a General Electric
subcontractor. 

Also on February 1, the material was recovered and returned to the plant. 
Inquiries are continuing in an effort to determine the method used by the 
individual to remove the material from the plant. 

This event could possibly provoke similar behavior on the part of other 
persons. Consequently, you should be aware of such an eventuality and take 
steps to deal with it, should it occur. NRC is not placing additional 
requirements on you, but is advising that extra caution be exercised in your
existing security program. 

No action is requested of you and no written response to this Information 
Notice is required. If you desire additional information regarding this 
matter, contact the Director of the appropriate NRC Regional Office. 

If you have any further questions, please feel free to contact this office. 

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