Major Export Enforcement Cases - Directorate of Defense Trade ...

Export Control Act, one count of possessing stolen trade secrets in violation of the Economic
Espionage Act, one count of transporting stolen property, and one count of lying to federal
agents. The jury acquitted Liu on two counts of lying to federal agents. According to documents
filed in the case and evidence presented at trial, in 2010, Liu stole thousands of electronic files
from his employer, L-3 Communications, Space and Navigation Division. The stolen files
detailed the performance and design of guidance systems for missiles, rockets, target locators, and
unmanned aerial vehicles. Liu stole the files to position and prepare himself for future
employment in China. As part of that plan, Liu delivered presentations about the technology at
several Chinese universities, the Chinese Academy of Sciences, and conferences organized by
Chinese government entities. However, Liu was not charged with any crimes related to those
presentations. On Nov. 12, 2010, Liu boarded a flight from Newark to China. Upon his return to
the United States on Nov. 29, 2010, agents found Liu in possession of a non-work-issued
computer found to contain the stolen material. The following day, Liu lied to ICE agents about
the extent of his work on U.S. defense technology. The State Department later verified that
several of the stolen files on Liu’s computer contained technical data that relates to defense items
listed on the United States Munitions List. The jury also heard testimony that Liu’s company
trained him about the United States’ export control laws and told him that most of the company’s
products were covered by those laws. Liu was first arrested on March 8, 201, in Chicago on a
complaint in the District of New Jersey charging him with one count of exporting defense-related
technical data without a license. The investigation was conducted by the FBI, ICE and CBP.
Aerospace-Grade Carbon Fiber to China – On Sept. 26, 2012, a criminal complaint was
unsealed in the Eastern District of New York charging Ming Suan Zhang with attempting to
illegally export thousands of pounds of aerospace-grade carbon fiber from the United States to
China. According to the complaint, Zhang was arrested in the United States after trying to
negotiate a deal to acquire the specialized carbon fiber, a high-tech material used frequently in the
military, defense and aerospace industries, and which is therefore closely regulated by the U.S.
Department of Commerce to combat nuclear proliferation and terrorism. The complaint alleges
that Zhang came to the attention of federal authorities earlier this year after two Taiwanese
accomplices attempted to locate large quantities of the specialized carbon fiber via remote
Internet contacts. In July 2012, Zhang allegedly told an accomplice: “When I place the order, I
place one to two tons. However, the first shipment will be for 100 kg [kilograms].” Shortly
thereafter, Zhang contacted an undercover law enforcement agent in an effort to finalize the deal
to export the carbon fiber from New York to China. In one recorded conversation, Zhang stated
that he had an urgent need for the carbon fiber in connection with the scheduled test flight of a
Chinese fighter plane. Zhang then arranged a meeting with an undercover agent to take
possession of a carbon fiber sample, which was to be shipped to China and analyzed to verify its
authenticity. Zhang was subsequently placed under arrest. This investigation was conducted by
ICE and BIS.
Industrial Supplies for Iranian Petrochemical Companies – On Sept. 26, 2012, Iranian national
Saeed Talebi pleaded guilty in the Southern District of New York to conspiring to violate the
International Emergency Economic Powers Act (IEEPA) stemming from his work with others to
ship to Iran parts and goods for use in industrial operations. The indictment against Talebi was
first unsealed on July 12, 2012 and charged him with conspiring to violate IEEPA and conspiring
to commit money laundering. Talebi worked to ship industrial goods and parts from U.S.-based
firms to Dubai and that these goods were then to be sent to various petrochemical companies
located in Iran. In the course of the scheme, Talebi allegedly caused funds to be wired to the
United States, including more than $300,000 that was sent to a bank account in Manhattan. The
investigation was conducted by BIS, with assistance from CBP.
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