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

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counts <strong>of</strong> aiding and abetting the smuggling <strong>of</strong> goods from the United States. According to the<br />

indictment, between June 19, 2010, and Feb. 17, 2012, Garza and an accomplice, Rolando<br />

Tamayo, illegally attempted to smuggle defense articles into the Republic <strong>of</strong> Mexico from the<br />

United States. Those items included night vision monocular goggles, a thermal goggle, 400 sets<br />

<strong>of</strong> AR-15 front and rear flip-up tactical sights, approximately 5,000 high-capacity assault rifle<br />

magazines and approximately 6,000 rounds <strong>of</strong> ammunition, including 100 rounds <strong>of</strong> .50 caliber<br />

ammunition. The indictment also charges Tamayo, who remains a fugitive, with two counts <strong>of</strong><br />

aiding and abetting the smuggling <strong>of</strong> goods. This case was investigated by ICE and ATF.<br />

<strong>Trade</strong> Secrets to China – On Jan. 25, 2013, Ji Li Huang, a Chinese business owner and his<br />

employee, Xiao Guang Qi, pleaded guilty and were sentenced in the Western District <strong>of</strong> Missouri<br />

for conspiring to steal trade secrets from Pittsburgh Corning Corporation, that produces<br />

FOAMGLAS® insulation. Huang is the CEO <strong>of</strong> Ningbo Oriental Crafts Ltd., which employs<br />

200 factory workers to manufacture promotional products for export to the United States and<br />

Europe. Qi was his employee. Huang was sentenced to 18 months in prison and ordered to pay a<br />

fine <strong>of</strong> $250,000. Qi was sentenced to time served and ordered to pay a fine <strong>of</strong> $20,000.<br />

Pittsburgh Corning, headquartered in Pittsburgh, Penn., manufactures various grades or densities<br />

<strong>of</strong> cellular glass insulation sold under the trade name FOAMGLAS®. That material is used to<br />

insulate buildings, industrial piping systems and liquefied natural gas storage tank bases.<br />

Pittsburgh Corning considers the product formula and manufacturing process for FOAMGLAS®<br />

proprietary and trade secrets. By pleading guilty, Huang and Qi admitted that they attempted to<br />

illegally purchase trade secrets <strong>of</strong> Pittsburgh Corning for the purpose <strong>of</strong> opening a plant in China<br />

to compete with Pittsburgh Corning. The court ruled that the intended loss to Pittsburgh Corning<br />

exceeded $7 million, based on the company’s investment <strong>of</strong> time and resources to research,<br />

develop and protect the proprietary information the defendants attempted to steal. Huang and Qi<br />

were arrested when they met with an individual they believed to be an employee <strong>of</strong> Pittsburgh<br />

Corning who had stolen documents that contained trade secret information and was willing to sell<br />

it to them for $100,000. That employee, however, was cooperating with law enforcement and the<br />

meetings in Kansas City were a sting operation that led to their arrests on Sept. 2, 2012. The case<br />

was investigated by the FBI.<br />

Sensitive Microwave Amplifiers to China and India -- On Jan. 17, 2013, Timothy Gormley was<br />

sentenced to 42 months in prison, three years supervised release and a $1,000 fine in Eastern<br />

District <strong>of</strong> Pennsylvania for five counts <strong>of</strong> violating the International Emergency Economic<br />

Powers Act (IEEPA). On Oct. 17, 2012, Gormley, the former export control manager <strong>of</strong> AR<br />

Worldwide/Amplifier Research in Souderton, PA, pleaded guilty in connection with the illegal<br />

export <strong>of</strong> over 57 microwave amplifiers, which are controlled for National Security reasons due<br />

to their applications in military systems, including radar jamming and weapons guidance systems.<br />

The Aug. 9, 2012, information alleged that between 2007 and 2011, Gormley failed to obtain the<br />

required licenses on behalf <strong>of</strong> the company for shipments sent to destinations requiring such<br />

licenses for the shipment <strong>of</strong> these goods. The information cited specific shipments <strong>of</strong> amplifiers<br />

from the United States to customers in India and China that Gormley caused without the required<br />

export license. This investigation was conducted by the Department <strong>of</strong> Commerce.<br />

Embargo Violations by Alleged Arms Dealer – On Jan. 9, 2013, Richard Ammar Chichakli, an<br />

alleged associate <strong>of</strong> convicted international arms dealer Viktor Bout, was arrested in Australia<br />

pursuant to an indictment in the Southern District <strong>of</strong> New York charging him with, among other<br />

things, conspiring with Bout and others to violate the International Emergency Economic Powers<br />

Act (IEEPA) by attempting to purchase two aircraft from companies in the United States in<br />

violation <strong>of</strong> economic sanctions that prohibited such financial transactions. In addition,<br />

Chichakli, a citizen <strong>of</strong> Syria and the United States, was charged with money laundering<br />

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