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