Chinese National Convicted of Exporting USML Technical Data to China
A former employee of a New Jersey defense contractor was convicted Sept. 27 of exporting sensitive U.S. military technology to China, stealing trade secrets and lying to federal agents, Immigrations and Customs Enforcement said. Sixing Liu, aka "Steve Liu," a Chinese national, was taken into custody following the verdict, based on risk of flight considerations. Liu was convicted of six counts of violating the Arms Export Control Act and the International Traffic in Arms Regulations, one count of possessing stolen trade secrets in violation of the Economic Espionage Act of 1996, one count of transporting stolen property in interstate commerce and one count of lying to federal agents, ICE said.
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According to court documents, in 2010, Liu stole thousands of electronic files from his employer, L-3 Communications, Space and Navigation Division. The stolen files detailed the performance and design of guidance systems for missiles, rockets, target locators and unmanned aerial vehicles. Liu stole the files to position and prepare himself for future employment in China, ICE said. As part of that plan, Liu delivered presentations about the technology at several Chinese universities, the Chinese Academy of Sciences and conferences organized by Chinese government entities. However, Liu was not charged with any crimes related to those presentations.
On 2010, Liu boarded a flight from Newark Liberty International Airport to China, ICE said. Upon his return to the U.S., agents found Liu in possession of a non-work-issued computer found to contain the stolen material. The following day, Liu lied to agents of the Department of Homeland Security about the extent of his work on U.S. defense technology, which the jury found to be a criminal false statement.
The U.S. Department of State's Directorate of Defense Trade Controls later verified that several of the stolen files on Liu's computer contained export-controlled technical data that relates to defense items listed on the U.S. Munitions List (USML), ICE said. Under federal regulations, items and data covered by the USML may not be exported without a license, which Liu did not obtain. The regulations also provide that it is the policy of the U.S. to deny licenses to export items and data covered by the USML to countries with which the United States maintains an arms embargo, including China.
The jury heard testimony that Liu's company trained him about the United States' export control laws and told him that most of the company's products were covered by those laws, ICE said.
After the verdict, the judge ordered Liu taken into custody, citing the penalties Liu faces, his ties to China and the lack of an extradition treaty with China, ICE said. Liu faces 20 years in prison and a $1 million fine for export violations; 10 years in prison and $250,000 in fines for stolen trade secrets; 10 years in prison and a $250,000 fine for interstate transportation of stolen property; and five years in prison and a $250,000 fine for his false statement to DHS.