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

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were sentenced for attempting to smuggle four machine guns and 30 grenades to Mexico. The<br />

investigation was conducted by ATF, ICE and Border Patrol.<br />

Munitions to Mexico – On April 14, 2011, Sergio Perez-Contreras was sentenced in the Southern<br />

District <strong>of</strong> Texas to 37 months in prison, while his co-defendant, Jose Jesus Miramontes-Duarte,<br />

was sentenced to 30 months in prison for their roles in attempting to export munitions to Mexico<br />

without a license. Both defendants were arrested on March 5, 2009 and later pleaded guilty to<br />

exporting munitions without a license in June 2010. The defendants were involved in an effort to<br />

illegally export 5,000 small pistol primers, 1,400 large pistol primers, 1,100 assorted calibers <strong>of</strong><br />

rifle bullets, 19 pounds <strong>of</strong> smokeless powder and two rifle barrel blanks – enough materials to<br />

manufacture roughly 7,500 rounds <strong>of</strong> ammunition. The investigation was conducted by ICE.<br />

Illegal <strong>Export</strong>s <strong>of</strong> Military Night Vision Technology to China, Singapore & U.K. – On April 12,<br />

2011, the Justice Department announced that a government motion to dismiss the remaining<br />

deferred criminal charge against ITT Corporation, the leading manufacturer <strong>of</strong> military night<br />

vision equipment for the U.S. Armed Forces, was granted by the court. On March 27, 2007, ITT<br />

Corporation pleaded guilty in the Western District <strong>of</strong> Virginia to two criminal counts <strong>of</strong> violating<br />

the Arms <strong>Export</strong> Control act stemming from its illegal exports <strong>of</strong> restricted military night vision<br />

data to China, Singapore, and the United Kingdom and omission <strong>of</strong> statements <strong>of</strong> material fact in<br />

required arms exports reports. As part <strong>of</strong> the plea agreement, ITT Corporation agreed to invest<br />

$50 million toward the development <strong>of</strong> the most advanced night vision systems in the world for<br />

the U.S. Armed Forces. The Justice Department agreed to dismiss the remaining criminal charge<br />

against ITT Corporation after ITT Corporation implemented an extensive remedial plan overseen<br />

by an independent monitor to prevent future Arms <strong>Export</strong> Control Act violations. ITT<br />

Corporation and the Justice Department will continue to work together to utilize resources set<br />

aside by the deferred prosecution agreement to further the development and fielding <strong>of</strong> the most<br />

advanced night vision technology. This investigation was conducted by DCIS and ICE.<br />

Wire Fraud in <strong>Trade</strong> Secrets Case Involving China – On April 6, 2011, Yan Zhu, a Chinese<br />

citizen in the U.S. on a work visa, was convicted in the District <strong>of</strong> New Jersey on seven counts <strong>of</strong><br />

wire fraud in connection with his scheme to steal confidential and proprietary business<br />

information relating to computer systems and s<strong>of</strong>tware with environmental applications from his<br />

New Jersey employer. He was acquitted on the charge <strong>of</strong> conspiracy to steal trade secrets and<br />

two counts <strong>of</strong> unauthorized transmission <strong>of</strong> trade secrets in interstate or foreign commerce. April<br />

10, 2009, Zhu was arrested on charges <strong>of</strong> theft <strong>of</strong> trade secrets, conspiracy, wire fraud, and theft<br />

<strong>of</strong> honest services fraud in connection with a plot to steal s<strong>of</strong>tware from his former U.S. employer<br />

and sell a modified version to the Chinese government after he was fired. Zhu was employed as a<br />

senior environmental engineer from May <strong>of</strong> 2006 until his termination in July <strong>of</strong> 2008. Zhu<br />

worked for a comprehensive multi-media environmental information management portal that<br />

developed a proprietary s<strong>of</strong>tware program for the Chinese market which allows users to manage<br />

air emissions, ambient water quality, and ground water quality. Zhu was sentenced on Jan. 5,<br />

2012 to three years <strong>of</strong> probation and a $700 special assessment. This investigation was conducted<br />

by the FBI<br />

Firearms Components to the United Kingdom – On March 28, 2011, defendants Charles<br />

Shearon, Elmer Hill, Michael Curlett and Arnold See, Jr., pleaded guilty in the Middle District <strong>of</strong><br />

Tennessee to conspiracy and violations <strong>of</strong> the Arms <strong>Export</strong> Control Act. On Feb. 8, 2011, a<br />

grand jury an indictment charging these defendants, another individual and a Nashville, Tenn.,<br />

arms manufacturer with conspiracy to violate the Arms <strong>Export</strong> Control Act and other <strong>of</strong>fenses in<br />

connection with the illegal export and import <strong>of</strong> firearms and firearms components. The<br />

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