Major Export Enforcement Cases - Directorate of Defense Trade ...
Major Export Enforcement Cases - Directorate of Defense Trade ...
Major Export Enforcement Cases - Directorate of Defense Trade ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
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 />
42