Chinese National Charged With Shipping Export-Controlled Data to China
A Chinese national was charged for his role in a scheme to illegally ship export-controlled "defense-related technical data" to China and illegally supply the Department of Defense with Chinese-origin rare earth magnets for aviation systems and military items, DOJ announced.
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The Chinese national and legal U.S. resident, Hang Sun, allegedly sent about 70 drawings containing export-controlled technical data to a company in China without a required license, according to an indictment unsealed Dec. 6. That violated the Arms Export Control Act and the International Traffic in Arms Regulations because the data involved "end-use items for aviation, submarine, radar, tank, mortars, missiles, infrared and thermal imaging targeting systems, and fire control systems," DOJ alleged.
Sun, through his company Quadrant Magnetics, which operated out of Kentucky, also allegedly imported rare earth magnets that were smelted and magnetized by a Chinese company. The goods were then sold to two U.S. firms, which included them in parts sold to DOD "for use in the F-16, the F-18, and other defense assets," DOJ said.
Sun faces a possible maximum five-year prison sentence for a conspiracy charge, 20 years in prison for wire fraud, 20 years for exporting technical data without a license, and 10 years for smuggling goods from the U.S.