Man Pleads Guilty to Exporting Military Antennae to Singapore & Hong Kong
On January 20, 2011, the Justice Department announced that Rudolf Cheung has pleaded guilty to conspiracy to violate the Arms Export Control Act in connection with the unlawful export of 55 military antennae from the U.S. to Singapore and Hong Kong.
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Firm Advised Singapore Co that Antennae Could Not be Exported w/o License
Cheung serves as the head of the Research & Development Department at a private company that manufactures antennae. Many of the antennae made by the firm have military applications and are used by defense contractors, and some are used in the U.S. space program.
According to court documents filed in the case, in June 2006, a company in Singapore sent an inquiry to the firm that employs Cheung seeking a quotation for two types of antennae that are classified by the U.S. government as defense articles and may not be exported without a license or approval from the State Department. After receiving the query, the export compliance officer at Cheung’s firm advised the firm in Singapore that neither antenna could be exported unless they filled out a U.S. government form attesting that the goods would not be transferred. The firm in Singapore refused, and the order was stopped.
After Export Blocked, Man Discussed a Plan to Bypass Company Export Controls
After learning that the export compliance officer at his company had blocked the export, Cheung admitted that he discussed with an individual outside his company (co-conspirator C) a plan to bypass the export controls at his company and arrange for the antennae to be exported to Singapore through co-conspirator C. Under the plan, co-conspirator C, who operated his own company in Massachusetts, would purchase these goods from Cheung’s company and then export them on his own to the firm in Singapore, with Cheung’s knowledge.
Co-Conspirator Purchased Antennae & Exported Them to Singapore Firm
Subsequently, co-conspirator C contacted the firm in Singapore and offered to broker the deal with Cheung’s company. Co-conspirator C then negotiated the purchase of the antennae with employees of the firm in Singapore and, later, with another company called Corezing International in Singapore. Between July and September 2007, co-conspirator C purchased 55 military antennae from Cheung’s company, which he then exported to Corezing addresses in both Singapore and Hong Kong.
Man Took No Action to Stop Sale of Antennae from His Company
According to court documents, Cheung was aware that the purchases by Co-conspirator C were intended for export from the U.S. and that these exports had previously been blocked by his export compliance manager. Yet Cheung took no action to stop the sale of these antennae from his company or their subsequent export from the U.S., even though he knew a license was required for such exports. Cheung neither sought nor obtained any license from the State Department to export these items outside the U.S.
Man faces Maximum Potential Sentence of 5 Yrs, $250K Fine
At sentencing, Cheung faces a maximum potential sentence of five years in prison, a fine of $250,000 and a 3-year term of supervised release.
Singapore-Based Company Charged in Separate Case
Corezing, based in Singapore, has been charged in a separate case in connection with the export of these particular military antennae to Singapore and Hong Kong. Corezing and its principals have also been charged, and the U.S. is seeking their extradition, in connection with the export of 6,000 radio frequency modules from the U.S. to Iran via Singapore, some of which were later found in improvised explosive devices in Iraq. (See ITT's Online Archives 11102707 for summary.)