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

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GM Trade Secrets to China – On July 22, 2010, an indictment returned in the Eastern District of Michigan charging Yu Qin and his wife Shanshan Du, both of Troy, Michigan, was unsealed. The indictment charged the defendants with conspiracy to possess trade secrets without authorization, unauthorized possession of trade secrets and wire fraud. According to the indictment, from December 2003 through May 2006, the defendants conspired to possess trade secret information of General Motors Company relating to hybrid vehicles, knowing that the information had been stolen, converted, or obtained without authorization. The indictment alleges that Du, while employed with GM, provided GM trade secret information relating to hybrid vehicles to her husband, Qin, for his benefit and for the benefit of a company, Millennium Technology International Inc. (MTI), which the defendants owned and operated. Five days after Du was offered a severance agreement by GM in January 2005, she copied thousands of GM documents, including trade secret documents, to a computer hard drive used for MTI business. A few months later, Qin moved forward on a new business venture to provide hybrid vehicle technology to Chery Automobile, a Chinese automotive manufacturer based in China and a competitor of GM. The indictment further alleges that in May 2006, the defendants possessed GM trade secret information without authorization on several computer and electronic devices located in their residence. Based on preliminary calculations, GM estimates that the value of the stolen GM documents is over $40 million. This investigation was conducted by the FBI. F-5 Fighter Jet Components to Iran – On July 7, 2010, a superseding indictment was returned in the District of Columbia charging Mac Aviation Group, an Irish trading company, and its officers Thomas and Sean McGuinn of Sligo, Ireland, with purchasing F-5 fighter aircraft parts from U.S. firms and illegally exporting them to Iran. The defendants were previously charged in July 2008 in connection with illegally exporting helicopter engines and other aircraft components to Iran. The new charges allege that, from 2005 and continuing until 2006, the defendants caused canopy panels designed for the F-5 fighter jet, valued at $44,500 to be exported from the United States to Iran and that the defendants falsely stated that the end-user for the panels was Nigeria. The transaction with Iran was allegedly arranged through the Iran Aircraft Manufacturing Industrial Company, known as HESA, which has been designated by the United States as an entity involved weapons mass destruction proliferation. The investigation was conducted by ICE and DCIS. Oil Field Equipment to the Sudan – On June 22, 2010, Agar Corporation Inc., a company in Houston, pleaded guilty in the Southern District of Texas to violating the International Emergency Economic Powers Act and agreed to pay $2 million in criminal fines and forfeiture as well as civil penalties to the U.S. Treasury’s Office of Foreign Assets Control. The company was sentenced two days later to four years probation and a $760,000 fine. Agar Corporation illegally facilitated the export of multi-phase flow meters by an affiliate in Venezuela to the Sudan for use in the Melut Basin oilfield in violation of the embargo on the Sudan. The investigation was conducted by ICE. Military Optics Technology to China, Russia, Turkey and South Korea – On June 22, 2010, in U.S. District Court for the District of Colorado, Rocky Mountain Instrument Company (RMI), a Colorado corporation located in Lafayette, Colorado, pled guilty to one count of knowingly and willfully exporting defense articles without a license in violation of the Arms Export Control Act. The company was then immediately sentenced to five years of probation and ordered to forfeit $1,000,000. Between April 2005 and October 2007, RMI exported from the United States to Turkey, South Korea, the People’s Republic of China, and Russia, prisms and technical data related to various optics used in military applications, which were designated as defense articles on the U.S. Munitions List, without having first obtained the required export licenses. The 54
military technology that RMI illegally exported consisted of guidance or targeting systems used in such military items as unmanned aerial vehicles, AC-130 gunships, Abrams tanks, TOW missile systems, and Bradley fighting vehicles. RMI was originally charged by criminal information on March 17, 2010. The case was investigated by ICE and DCIS. Illegal Oil Transaction with Iraq – On June 21, 2010, Muthanna Al-Hanooti pleaded guilty in the Eastern District of Michigan to one count of violating the International Emergency Economic Powers Act (IEEPA) for unlawfully accepting an allocation of two million barrels of Iraqi oil from the Government of Iraq in December 2002 without the required U.S. government license. Al-Hanooti was previously charged in a Feb. 13, 2008, indictment with conspiracy to act as an unregistered agent of the Government of Iraq, an IEEPA violation, and making false statements in connection with his alleged work on behalf of the Iraqi Intelligence Service. In March 2011, Al- Hanooti was sentenced to one year and one day in prison. This investigation was conducted by the FBI. Fighter Jet Components to Iran – On June 17, 2010, Saeid Kamyari, an Iranian national, pleaded guilty in the Southern District of Alabama to attempting to illegally export U.S. fighter jet parts from the United States to Iran. Kamyari, along with defendant “Masun,” whose last name is unknown, were charged in a nine-count indictment on Jan. 28, 2010, with conspiracy, money laundering, smuggling, as well as violations of the Arms Export Control Act and the International Emergency Economic Powers Act. Kamyari was arrested by federal agents in March 2010 upon his arrival in Miami. Kamyari and Masun have been actively working with the Iranian government to procure military items for the Iranian government. In November 2009, Kamyari reached out to an undercover federal agent requesting pricing for a list of military aircraft parts to be sent to Iran. Thereafter, he sent four separate payments totaling more than $70,000 to a bank in Alabama as a down payment for the parts. The investigation was conducted by ICE and DCIS. Satellite Hardware and Technology to Iran – On June 2, 2010, a federal grand jury in the District of Maryland returned an indictment charging Nader Modanlo, an American, and five Iranian citizens on charges of conspiring to illegally provide satellite hardware and technology to Iran in violation of the International Emergency Economic Powers Act and money laundering. The indictment alleges that as a result of the conspiracy, an Iranian earth satellite equipped with a camera was launched into space in Russia on Oct. 27, 2005. According to the indictment, from January 2000 through November 27, 2007, the defendants concocted a scheme to evade the Iran trade embargo, by using sham companies to conceal Iranian involvement in prohibited activities and transactions. The indictment notes that some $10 million was wired from an overseas account to the account of a defendant in the United States in consideration for his assistance to Iran and the Iranians in brokering a satellite agreement with Russia and for his New York company providing telecommunications services in support of that agreement. Charged in the indictment are: Nader Modanlo, of Potomac, Maryland, a naturalized U.S. citizen born in Iran; Hamid Malmirian; Reza Heidari; Mohammad Modares; Abdol Reza Mehrdad; and Sirous Naseri, all Iranian nationals. Nader Modanlo was arrested on June 8, 2010 in Maryland. The other defendants remain at large. The investigation was conducted by ICE and the IRS. Thermal Imaging Cameras to China – On May 14, 2010, Sam Ching Sheng Lee, part-owner and chief operations manager of Multimillion Business Associate Corporation ("MBA"), pleaded guilty in the Central District of California to conspiracy to violate the International Emergency Economic Powers for illegally exporting national security-controlled thermal imaging cameras to China. His nephew, Charles Yu Hsu Lee, pleaded guilty the same day to misprision of a felony for the same activity. Sam Lee was sentenced on Feb. 18, 2011 to 12 months in prison and a 55
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Page 3 and 4: conspiracy, wire fraud conspiracy,
Page 5 and 6: manager at Ariana and current lead
Page 7 and 8: allegedly concealed that Iranian cu
Page 9 and 10: States who was ultimately able to o
Page 11 and 12: who was responsible for control of
Page 13 and 14: The weapons included numerous semia
Page 15 and 16: Theft of Trade Secrets for Potentia
Page 17 and 18: 2004 and 2006 - all without the req
Page 19 and 20: Department license. In carrying out
Page 21 and 22: Firearms to Haiti - On June 5, 2012
Page 23 and 24: China without first having obtained
Page 25 and 26: DuPont Trade Secrets to China - On
Page 27 and 28: attempted violation of AECA; and sm
Page 29 and 30: agent responded to the request and
Page 31 and 32: senior scientist for Frontier Scien
Page 33 and 34: 6,000 modules to be illegally expor
Page 35 and 36: Act and the International Emergency
Page 37 and 38: support to the Revolutionary Armed
Page 39 and 40: contracts. Swiss Tech was under con
Page 41 and 42: of these goods was the Pasteur Inst
Page 43 and 44: indictment charged Guy Savage, of t
Page 45 and 46: Chavarin’s vehicle at the Douglas
Page 47 and 48: David Broome was sentenced to 30 mo
Page 49 and 50: Government of Yemen, and received i
Page 51 and 52: Gomez, Jose Barajas, Pascual Montor
Page 53: U.S. Fighter Jet Engines and Parts
Page 57 and 58: Office of Foreign Assets Control (O
Page 59 and 60: Economic Espionage / Theft of Space
Page 61 and 62: numerous advanced aircraft, missile
Page 63 and 64: Science & Technology Co. Ltd, and t
Page 65 and 66: unlawful disclosure of restricted d
Page 67 and 68: Military Aircraft Components to Ira
Page 69 and 70: owned or controlled by entities inv
Page 71 and 72: while Bui remains a fugitive. Accor
Page 73 and 74: Missile Technology to Iran - In lat
Page 75 and 76: Malaysia and ultimately, to Hong Ko
Page 77 and 78: claiming that a military gyroscope
Page 79 and 80: technologies. These technologies ha
Page 81 and 82: States to Iran via the United Kingd
Page 83 and 84: China in violation of federal laws
Page 85 and 86: Radios, Ammunition Magazines, Scope
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