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

flight systems, target drones, missiles, torpedoes and remotely piloted vehicles -- as well as
military-grade K2000 Series Servo Actuators designed for use on aircraft. The defendants also
sought precision pressure transducers, emergency floatation system kits -- for use on helicopters –
and shock mounted light assemblies. Levick and ICM often used a broker in Florida to place
orders for these goods and allegedly concealed the final end-use and end-users of the goods from
the U.S. In addition to the conspiracy allegations, the indictment charges the defendants with
exporting to Iran four specific shipments involving shock mounted lighted assemblies, precision
pressure transducers and an emergency floatation system kit. Levick remains at large. The
investigation was conducted by BIS, FBI, DCIS and ICE.
Defense Items to the United Arab Emirates – On Feb. 24, 2012, Andrew Silcox was sentenced to
24 months in prison after pleading guilty on Dec. 15, 2011 in the Western District of Texas to one
count of violating the Arms Export Control Act. Silcox was in the business of purchasing surplus
Defense Department equipment and reselling it. According to court documents, Silcox sold a
Naval Radar Control Unit part (also known as a Sensitivity time Control Generator Assembly)
and attempted to sell three others to an undercover agent posing as a broker for a purchaser in the
United Arab Emirates. The units Silcox attempted to sell are defense articles that require a State
Department license for export. Silcox was arrested in San Antonio on Oct. 21, 2011. This
investigation was conducted by ICE and DCIS.
Computer-Related Technology to Iran – On Feb. 17, 2012, Jeng “Jay” Shih, was sentenced in
the District of Columbia to 18 months in prison, while his Queens, N.Y., company, Sunrise
Technologies and Trading Corporation, was sentenced to 24 months corporate probation for
conspiracy to illegally export U.S.-origin computers from the United States to Iran through the
United Arab Emirates (UAE). Both Shih and his company were also sentenced to forfeiture in
the amount of $1.25 million, for which they are jointly liable. Shih and Sunrise pleaded guilt on
Oct. 7, 2011. Three related defendants have also pleaded guilty in the case. On Feb. 16, 2012,
Massoud Habibion and his Costa Mesa, Calif., company, Online Micro LLC, pleaded guilty in
the District of Columbia to conspiracy to illegally export computers from the United States to
Iran through the (UAE). Mohsen Motamedian, a co-owner of Online Micro, pleaded guilty to
obstruction of justice. Under the terms of the plea and related civil settlements with BIS and
OFAC, Habibion and his company agreed to forfeit $1.9 million, while Motamedian separately
agreed to a $50,000 monetary penalty. On May 16, 2012, Habibion was sentenced to 13 months
in prison, while Motamedian was sentenced to three years supervised release. On April 21, 2011,
two separate indictments were returned in the District of Columbia charging Shih and Sunrise, as
well as Habibion, Motamedian and Online Micro. The indictments alleged that each of the
defendants sold millions worth of laptop computers to a company in Dubai, knowing full well
that the computers were ultimately destined for Iran. According to court documents, Shih
exported roughly $700,000 worth of computers per month to Iran through Dubai, while Habibion
and Motamedian exported roughly $300,000 worth of computers per month to Iran through
Dubai, by using fake invoices and other concealment techniques. The investigation was
conducted by ICE, with assistance from the Department of Commerce and U.S. Customs and
Border Protection.
Radiation-Hardened Circuits to China – On Feb. 3, 2012, Chinese citizen and former California
Department of Transportation (Caltrans) engineer Philip Chaohui He made his initial appearance
in federal court in the District of Colorado after his arrest in San Francisco in connection with his
alleged efforts to export defense articles to China without a State Department license, specifically
more than 300 space-qualified and radiation-hardened computer circuits used in satellite
communications with a total value of nearly $550,000. A Dec. 15, 2011 indictment charged He
with conspiracy to violate the Arms Export Control Act (AECA) and to smuggle goods;
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