Fraud Conspiracy: Exports to Iran

5 individuals and their companies have been indicted as part of a conspiracy to defraud the United States that have been accused of causing thousands of radio frequency devices to be illegally exported from the U.S. to Iran. More than 15 were found in improvised explosive devices (IEDs) in Iraq. IED’s have been responsible for killing thousands in the war and leaving many more injured. The conspirators are also charged in a fraud conspiracy involving exportation of military antennas to Asia, specifically in Singapore & Hong Kong.

Authorities in Singapore arrested Wong Yuh Lan, Lim Kow Seng, Lim Yong Nam, and Hia Soo Gan Benson in connection with the United States’ request for extradition. The U.S. is seeking their trial in Washington D.C. The last defendant, Hossein Larijani, a citizen and resident of Iran, remains uncaptured and wanted for questioning. He is currently a denied trade party and restricted party.

Advertisements

Illegally Exporting Performance Coatings

The former Managing Director, Xun Wang, of PPG Paints Trading Company, Ltd., located in Shanghai, pleaded guilty to illegally exporting high performance coatings to a nuclear reactor facility located in Pakistan. The company is a Chinese subsidiary of the U.S. based PPG Industries.

Xun Wang pled guilty for violating the International Emergency Economic Powers Act; facing a max sentence of 5 years in prison and a fine not to exceed $250,000 USD. Xun Wang did agree to cooperate with law enforcement as part of her admission of guilt. In addition, Xun will be added to the Department of Commerce (DOC) Debarred (Denied) Party List for a period of 5 years.

Wang is charged with conspiring to export and then re-export epoxy coatings to Chashma #2 Nuclear Power Plant (Pakistan). The nuclear facility is on the U.S. DOC Watch List. In Nov. 1998 the Pakistan Atomic Energy Commission was added to the debarred list of United States trade parties following Pakistan’s successful ignition of a nuclear device.

PPG Industries (Shanghai) had initially applied for an export license to ship the performance coatings to Chashma#2 in Pakistan. The U.S. Department of Commerce rejected the application. Upon rejection, Wang had the coatings shipped from the United States using a third party. Eventually the shipment was found to be delivered to Chashma#2. Wang had concealed information, stating the coating paint was for a power plant in China.

Mr. Rudolf Cheung Pleads Guilty

Mr. Rudolf Cheung pled guilty this week to violating the U.S. Department of State, Arms Export Control Act (AECA). Mr. Cheung, a Massachusetts resident, was found conspiring to illegally export 55 antennae with military application, from the U.S. to Hong Kong and Singapore.

Serving as the head of the R&D at a private antennae manufacturing firm for over 17 years, Cheung has planned and overseen the advancement of antennae made by the firm. The firm manufactures multiple antennae for military use, subject to DOS regulations. Allegedly in June of 2006, a company located in Singapore asked for a quotation for 2 types of antennae from the firm. Both antennas fall under the jurisdiction of the U.S. Department of State and may not be exported without authorization. The firm flagged the order as needing a license and was immediately stopped.

Upon learning that the antennae export was halted, Mr. Cheung admittedly discussed with a co-conspirator a method to export the devices without proper authorization to Singapore. The co-conspirator, who operates in the United States, purchased the antennas from Cheung’s firm. The goods were then later exported illegally to a firm, Corezing in Singapore with Cheung’s knowledge. From July 2006 to September 2007, the conspirator purchased a total of 55 military antennae which were then exported to Corezing in Singapore and Hong Kong.

Mr. Rudolf Cheung faces a max sentence of 5 years in prison as well as a fine of $250,000 USD with a conditional 3 years supervised release. Both parties will be added to the U.S. Denied Party List and Debarred Party List. Until rescinded from the watch list, the denied and debarred parties are prohibited from receiving any EAR controlled goods.