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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<strong>Trade</strong> Secrets to Competitors in China – On May 7, 2012, an indictment returned in the District<br />
<strong>of</strong> Utah in April 2012 was unsealed charging two people and two companies with theft <strong>of</strong> trade<br />
secrets, wire fraud, and conspiracy to commit wire fraud in connection with the alleged theft <strong>of</strong><br />
trade secrets from Orbit Irrigation Products, an irrigation company headquartered in Utah. The<br />
defendants are Janice Kuang Capener and Luo Jun, both citizens <strong>of</strong> China, as well as Sunhills<br />
International LLC, a California company established by Capener; and Zhejiang Hongchen<br />
Irrigation Equipment Co., LTD, a Chinese company under contract with Orbit. According to<br />
court documents, Capener worked at Orbit from June 2003 through Nov. 1, 2009, including<br />
serving chief <strong>of</strong> operations at Orbit’s manufacturing plant in Ningbo, China. Capener allegedly<br />
stole Orbit trade secrets relating to sales and pricing and used that information for herself and<br />
others to the detriment <strong>of</strong> Orbit. Capener also allegedly worked with Jun, Sunhills International<br />
and Zhejiang Hongchen Irrigation Equipment to devise a scheme to undermine Orbit’s position in<br />
the marketplace using illegally obtained proprietary pricing information. Capener and Jun were<br />
arrested on May 4, 2012. This case was investigated by the FBI.<br />
Firearms to Nigeria – On May 3, 2012, Olamide Ogunyale was sentenced in the Northern<br />
District <strong>of</strong> Georgia to 8 months in prison, followed by two years <strong>of</strong> supervised release, for<br />
attempting to smuggle firearms to Nigeria. Ogunyale pleaded guilty on Dec. 1, 2012. According<br />
to court documents, in April 2011, Ogunyale agreed to help an individual ship 12 firearms and<br />
vehicles from the Port <strong>of</strong> Savannah, Ga., to Nigeria and completed export paperwork without<br />
declaring the hidden shipment <strong>of</strong> weapons. The case was investigated by the ATF and ICE.<br />
Drone, Missile and Stealth Technology to China – On April 25, 2012, an amended criminal<br />
complaint was unsealed in the District <strong>of</strong> New Jersey charging Hui Sheng Shen, aka “Charlie,”<br />
and Huan Ling Chang, aka, “Alice,” both Taiwanese nationals, with conspiracy to violate the<br />
Arms <strong>Export</strong> Control Act. Both had previously been arrested on Feb. 25, 2012 in New York in<br />
connection with a complaint in New Jersey charging them with conspiring to import and<br />
importing crystal methamphetamine from Taiwan to the United States. According to the<br />
amended complaint, during negotiations with undercover FBI agents over the meth deal, the<br />
defendants asked FBI undercover agents if they could obtain an E-2 Hawkeye reconnaissance<br />
aircraft for a customer in China. In subsequent conversations, Shen and Chang allegedly<br />
indicated they were also interested in stealth technology for the F-22 fighter jet, as well missile<br />
engine technology, and various Unmanned Aerial Vehicles (UAV), including the RQ-11b Raven,<br />
a small, hand-launched UAV used by the U.S. Armed Forces. Shen and Chang allegedly stated<br />
that their clients were connected to the Chinese government and its intelligence service.<br />
According to the complaint, they sent undercover agents a code book to facilitate<br />
communications relating to the proposed arms exports and opened a bank account in Hong Kong<br />
to receive and disburse funds related to the transactions. On a visit to New York in February<br />
2012, the defendants allegedly examined a Raven RQ-11b UAV and manuals relating to the RQ-<br />
4 Global Hawk UAV (provided by undercover FBI agents) that they allegedly intended to export<br />
to China. Shen and Chang were arrested shortly thereafter. The export investigation was<br />
conducted by the FBI, while ICE was responsible for a parallel investigation into the import <strong>of</strong><br />
counterfeit goods from China involving other defendants.<br />
Thermal Imaging Cameras to China – On April 23, 2012, Jason Jian Liang, the owner and<br />
operator <strong>of</strong> Sanwave International Corporation in Huntington Beach, Calif., was sentenced to 46<br />
months in prison and three years supervised release after pleading guilty on July 18, 2011, in the<br />
Central District <strong>of</strong> California to violations stemming from his illegal exports <strong>of</strong> thermal imaging<br />
cameras to Hong Kong and China. Lian was first indicted on June 2, 2010. An Aug. 18, 2010<br />
superseding indictment charged Liang with illegally exporting more thermal imaging cameras to<br />
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