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

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