Exporter Pleads Guilty to Selling Sensitive Microwave Technology to China
On November 17, 2011, the Justice Department announced that Fu-Tain Lu, the owner and founder of Fushine Technology, Inc., has pleaded guilty to selling sensitive microwave amplifiers to China without a license, in violation of U.S. export regulations (50 USC 1705(b) and 15 CFR 764.2(a)).
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Exported Amplifier Restricted for Export to China for Nat'l Security Reasons
Fushine, a California company, is an exporter of electronic components primarily used in communications, radar, and other applications. At the time of the offense, Fushine had a sales representative agreement with Miteq Components, Inc. (Miteq), a New York-based manufacturer of microwave and satellite communications components and subsystems.
Lu admitted that, on March 1, 2004, Fushine submitted a purchase order to Miteq for one microwave amplifier and requested that Miteq notify Fushine immediately if an export license was required. Miteq responded that the part was controlled for export to China. Nonetheless, on April 2, 2004, Fushine exported the amplifier to co-defendant Everjet Science and Technology Corporation (Everjet), located in China, without having obtained a license or license exception from the Commerce Department. Lu further admitted that the amplifier he shipped was restricted for export to China for reasons of national security.
Advised Others to Pretend Intended End-User Was in Singapore, Not China
Lu, along with the two corporate defendants, Fushine and Everjet, were first indicted on April 1, 2009. A superseding indictment was returned on February 17, 2010. In addition to the count of conviction, the indictment also charged Lu with conspiring to violate U.S. export regulations, and lying to federal agents who were investigating that conduct.
The indictment alleged that the defendants knew about the licensing restrictions and specifically sought to circumvent them. The superseding indictment quoted from an internal company e-mail in which an Everjet employee told a Fushine employee not mention that the location of the end-user is in China. The indictment also quoted from another e-mail in which Lu advised a subordinate to pretend that the intended end-user for an item was in Singapore rather than China.
Agreed to Forfeit 36 Add'l Microwave Amplifiers That Were Seized
In the plea agreement, Lu also agreed to forfeit 36 additional microwave amplifiers that were seized on March 24, 2010, but that were not included in the superseding indictment. Lu's sentencing is scheduled for February 21, 2012. The maximum statutory penalties for the count of conviction -- violation of export regulations-- are 10 years in prison and a $50,000 fine.
(See ITT's Online Archives 09041399 for summary of Lu, Fushine, and Everjet being indicted for conspiring to ship this technology to China without a license.)