DOJ Updates its List of Major Export, Embargo-Related Cases for 2011

DOJ notes that this list of cases is not exhaustive and only represents select cases.

(In February 2010, DOJ published a summary of its major prosecutions from 2007-2010. DOJ has added additional cases to this summary to reflect the major prosecutions in 2011 since the February 2010 summary. These cases resulted from investigations by the U.S. Immigration and Customs Enforcement (ICE), the Federal Bureau of Investigation (FBI), the Bureau of Industry and Security (BIS), the Defense Criminal Investigative Service (DCIS), and other law enforcement agencies. See ITT's Online Archives or 02/16/10 news, or 10021635, for BP summary for DOJ's previous summary.)

Highlights of Major Export Enforcement Cases in 2011

The following are highlights of DOJ's listed U.S. export enforcement prosecutions from February 2010 to the present:

Chemical equipment re-exports to Libya. In March 2010, Uni-Arab Engineering and Oil Field Services, a firm incorporated in the United Arab Emirates and operated in part by two naturalized U.S. citizens, Jaime Radi Mustafa and Nureddin Shariff Sehweil, pleaded guilty to violating U.S. sanctions against Libya by exporting oil field chemical testing equipment supplies from Texas to the Netherlands in 2001 and 2002, where they were repackaged and illegally re-exported to Libya.

Bullet-proof vests, etc. to Yemen. In January 2011, Amen Ahmed Ali was sentenced to five years in prison for conspiracy to act as an unregistered agent of the Government of Yemen, to possess stolen government property, and to unlawfully export defense materials to Yemen without a license, including bullet proof vests and chemical protective suits. He also negotiated with an undercover FBI agent to obtain and ship to Yemen materials that he believed were stolen U.S. military equipment, including night vision goggles, satellite telephones and laptop computers.

Specialized metals export to Iran. In February 2011, Milad Jafari, an Iranian citizen designated by the Treasury Department, was charged with illegally exporting and attempting to export specialized metals from the U.S. through companies in Turkey to several entities in Iran, including entities that have been sanctioned involvement in ballistic missile activities. Jafari and others operated a procurement network that provides direct support to Iran’s missile program by securing metal products, including steel and aluminum alloys, for subordinates of Iran’s Aerospace Industries Organization (AIO). (See ITT's Online Archives or 02/03/11 news, 11020335, for BP summary)

Vacuum pumps for nuclear application to Iran. In November 2010, Iranian national, Amirhossein Sairafi pleaded guilty to illegally exporting and smuggling specialized vacuum pump equipment, which can be used in the enrichment of uranium, from the U.S. to Iran via the United Arab Emirates. Jirair Avanessian, the owner and operator a company called XVAC, and Farhad Masoumian, were also charged. Masoumian directed Avanessian to procure and illegally export vacuum pumps from the U.S. to AVAC, a corporation in the United Arab Emirates whose managing director is Sairaf, to be forwarded to Iran. At least seven shipments containing vacuum pump equipment purchased and exported by Avanessian at Masoumian’s request were made.

Dow trade secrets to China. In February 2011, Wen Chyu Liu, a former research scientist, was convicted of stealing trade secrets from Dow Chemical Company and selling them to companies in China. Liou conspired with at least four current and former employees of Dow’s facilities in Louisiana and Germany to misappropriate trade secrets related to elastomeric polymer, chlorinated polyethylene (CPE), in an effort to develop and market CPE process design packages to Chinese companies.

Military radar electronics export to China. In January 2011, Yufeing Wei and her co-defendant, Zhen Zhou Wu, were sentenced to prison, and their company, Chitron Electronics, Inc. was fined $15.5 million. The defendants conspired to illegally export to China, military electronics components and sensitive electronics used in military phased array radar, electronic warfare and missile systems, and for filing false shipping documents with the U.S. (See ITT's Online Archives or 02/04/11 and 02/02/11 news, 11020439 and 11020229, for BP summaries.)

Rocket propulsion systems to Korea. In October 2010, Juwhan Yun, was sentenced to 57 months in prison for attempting to illegally export defense articles to South Korea, including components for a 20 mm gun, known as the M61Vulcan; components for a SU-27 Russian fighter jet; and RD-180 rocket propulsion systems, and related technology without the required State Department licenses. He was indicted for attempting to purchase rocket materials for a company working on the Korean Satellite Launch Vehicle project and which was previously involved in developing Korea’s KOMPSAT-1 satellite. Yun was previously convicted in connection with an effort to export 500 quarter-ton bombs of sarin nerve gas to Iran. None of the bombs ultimately made it to Iran.

Infrared focal planes to Korea. In January 2011, Kue Sang Chun, a former NASA employee, pleaded guilty to illegally exporting infrared focal plane array detectors and infrared camera engines, which are classified as defense articles on the USML, to South Korea for use in Korean government projects. Chun entered into a contract with a Korean company to design, build and text electronics to support the items he was exporting. Chung used his NASA e-mail address to order sensitive items from U.S. manufacturers, falsely asserting that they would be used for NASA projects. (See ITT's Online Archives or 01/25/11 news, 11012519, for BP summary.)

Military optics to China, Russia, Turkey, S. Korea. In June 2010, Rocky Mountain Instrument Company (RMI), was sentenced to five years probation and to forfeit $1 million for exporting from the U.S. to Turkey, South Korea, China, and Russia, prisms and technical data related to various optics used in military applications, which were designated as defense articles on the USML, without having first obtained the required export licenses. The 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.

AK-47s, other firearms export to Mexico. In January 2011, 20 defendants were charged with conspiring to purchase hundreds of firearms, including AK-47s, to be illegally exported to Mexico, by acting as straw purchasers, i.e., falsely declaring they were buying the weapons for themselves when they were purchasing them for others. An additional 14 defendants were charged with making false statement during the purchase of a firearm, in connection with straw purchases of multiple firearms destined for Mexico.

High-performance coating to nuclear reactor in Pakistan. In December 2010, PPG Paints Trading Co. Ltd, agreed to pay a criminal fine of $2 million for illegally exporting, re-exporting and/or transshipping high-performance coatings from the U.S. to the Chashma 2 Nuclear Power Plant in Pakistan via China, without the required export license. BIS had added the Pakistan Atomic Energy Commission, as well as its subordinate nuclear reactors and power plants, to the list of prohibited end users under the Export Administration Regulations. (See ITT's Online Archives or 12/23/10 news, 10122319, for BP summary.)