US DOJ say execs tried to smuggle specialized satellite chips out of country
The Department of Justice today said two Chinese nationals have been indicted by a federal grand jury for trying to buy and smuggle thousands of radiation-hardened microchips meant for satellite and aerospace use but are prohibited US exports.
From the DOJ: Hong Wei Xian, aka “Harry Zan,” 32, and Li Li, aka “Lea Li,” 33, both from the People’s Republic of China (PRC), were charged in a two-count indictment accusing them of conspiring to violate the Arms Export Control Act and to smuggle goods from the United States and the attempted export of US Munitions List items in violation of the Arms Export Control Act. If convicted, they face a maximum penalty of five years in prison for the conspiracy charge and 20 years in prison on the export violation charge.
More on space: Gigantic changes keep space technology hot
The DOJ says that Xian is the president and Li the vice president of Beijing Starcreates Space Science and Technology Development Company Limited and Li is the company’s vice president. The company imports and sells programmable read-only memory microchips to China Aerospace Science and Technology Corporation, which is controlled by the PRC government.
From the DOJ: Since 1990, the US has maintained an arms embargo against the PRC that prohibits the export, re-export, or re-transfer of any defense items to the PRC. Prohibited defense items are placed on the US Munitions List, which includes spacecraft systems and associated equipment. Neither Xian nor Li applied for nor received a license from the United States to export defense articles of any description; however, from April 2009 to Sept. 1, 2010, the two are charged with contacting a company in the Eastern District of Virginia and seeking to export thousands of radiation-hardened PROMs from that company.
The indictment goes on to say that Xian and Li knew a license was needed, but did not try to get one because it was difficult, time-consuming, and would require them to identify the end user and describe the end use. They are accused of conspiring to break up orders into multiple shipments and designate countries outside of the PRC for delivery to avoid drawing attention to the orders, the DOJ stated.
Follow Michael Cooney on Twitter: nwwlayer8
Layer 8 Extra
Check out these other hot stories:
UPDATE: Underwater robots find airline wreckage, bodies
IT “geek squad” wins $319 million Mega Millions lottery
FBI wants you to solve encrypted notes from murder mystery
Get in the ring: protection US, Europe vow to hash out Internet personal privacy
Should smartphones be allowed in the courthouse?
NASA’s “images” of life on Mars circa 1975
Welcome to Plato, Mo. (pop. 109) the mean population center of the United States
Men AND women might both be from Mars
FBI: How to be an expert at the black art of cryptography
