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Posts tagged "sentence"

Wonder if they have WiFi in Federal Prison

A North Texas man was sentenced on Tuesday to nearly five years in federal prison, and ordered to pay $402,417 in restitution, following his June 2011 guilty plea on copyright infringement, announced U.S. Attorney Sarah R. SaldaƱa of the Northern District of Texas.

U.S. District Judge Reed C. O'Connor sentenced James Clayton Baxter, 28, of Wichita Falls, Texas, to 57 months in prison. Baxter must surrender to the Bureau of Prisons by March 29.

According to documents filed in the case, from June 8, 2006 through April 9, 2007, Baxter infringed upon the copyrighted works of Adobe Systems Inc. by reproducing copies of its computer software for his financial gain. The investigation into Baxter's activities began in May 2007 when U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) was notified by investigators working for Adobe that they had purchased infringing computer software from TechKappa.com, a website that sold copies of software titles via download from the Internet. The investigation led investigators to Baxter's residence on Lou Lane in Wichita Falls.

Also in 2007, the FBI received a separate lead from the Wichita Falls Police Department (WFPD) regarding Baxter's involvement in selling pirated software. WFPD encountered Baxter selling infringing software in 2004 while investigating him for credit card abuse; he was warned that he could not sell pirated software on his websites. WFPD executed a search warrant at Baxter's residence in October 2007, and seized computers and external storage media.

The investigation revealed that Baxter owned and operated various websites, including Amerisoftware.com, Costfriendlysoftware.net, TechKappa.com, Ultrabackup.net, Superbuysoftware.net and Go-E-Soft.com. These sites, which he advertised online, offered "backup" copies of software, owned by Adobe, Microsoft and Autodesk Inc., for sale at about one-fifth of the manufacturer's retail value. Baxter also provided counterfeit product registration codes (serial numbers) that were distributed with the software so that the customer could install the software.

Between June 8, 2006, through April 9, 2007, Baxter caused more than 90 infringed copies of copyrighted software to be reproduced and distributed, for which he received more than $66,000. These included copies of the following copyrighted computer software: Adobe's Photoshop CS2, Adobe Illustrator CS2 and Adobe Photoshop 7.

Baxter admits that he knew the "backup" copies of Adobe software were illegal reproductions and that he willfully infringed on their works for his personal financial gain. Baxter and the government agree that the government can prove an actual loss of between $400,000 and $1 million.

Between 2004 and 2007, Baxter established at least 17 assumed business names with accompanying merchant bank accounts to process credit card payments for software orders. For example, during the brief time period between Aug. 7 and Aug. 18, 2006, Baxter received $18,036 in his PayPal account. Records further show that these merchant bank accounts processed 3,089 approved software orders that totaled $384,380.

The conviction and sentencing of James Clayton Baxter is the latest in a series of investigations initiated by the National IPR Coordination Center involving defendants from Wichita Falls, Texas. Six other men have also been convicted of operating websites used to sell pirated Adobe software:

Thomas C. Rushing III, William Lance Partridge and Brian C. Rue all pleaded guilty to criminal copyright infringement in U.S. District Court in Austin, Texas, on Aug. 22, 2008.
Timothy K. Dunaway pleaded guilty to criminal copyright infringement in U.S. District Court in Wichita Falls, Texas, on Oct. 20, 2008.
Robert and Todd Cook pleaded guilty to criminal copyright infringement in Alexandria, Va., on March 11, 2010.
Sentences for the seven defendants ranged from 12 months and a day to 57 months imprisonment with restitution totaling more than $2 million ordered to be paid to Adobe Systems Inc., a U.S. corporation based in San Jose, Calif. Combined, the counterfeit Adobe software sold by these individuals had a retail value of more than $15 million.

BLOWOUT - CBP Seizes $2.5mill worth of unsafe Hair Dryers

U.S. Customs and Border Protection (CBP) seized thousands of hair dryers recently that were determined to constitute a "substantial product hazard" under U.S. law for failing to have adequate immersion protection. The potentially dangerous hair dryers were identified through a nationwide targeting operation by the CBP Import Safety Commercial Targeting and Analysis Center (CTAC). CBP Stops Thousands of Unsafe Hair Dryers

 click for hi-res
Hair dryer seized by CBP
Hair dryer seized by CBP
As a result of the targeting operation, CBP officers in the port of Los Angeles seized an entire shipment of 9,768 hair dryers that lacked shock protection for consumers. Lack of proper shock protection could lead to an electrocution if contact is made with a water source. The port of Miami had a notable seizure of 3,614 hair dryers that also lacked proper shock protection for consumers. These two shipments, containing a total of 13,382 hair dryers, had an estimated domestic value of approximately $229,998 with a manufacturer's suggested retail price of $2,506,517.

"Ensuring the safety of imported merchandise is a top priority for CBP," said Allen Gina, CBP's assistant commissioner for international trade. "The concerted targeting efforts of CTAC and the vigilance of CBP officers at our ports of entry will help ensure that products like hair dryers are safe for consumers and that substandard product from overseas does not reach store shelves."

Hair dryers seized by CBP
Hair dryers seized by CBP
The joint targeting operation with the U.S. Consumer Product Safety Commission (CPSC) concentrated on identifying and stopping the importation of unsafe hair dryers intended for consumer use. CPSC reports that since adoption of industry voluntary standards for immersion protection in its regulations, there has been a significant decline in electrocutions or electrical shock incidents.

"This is another example of how U.S. consumers benefit from the close collaboration between CPSC investigators and CBP officers at some of the largest U.S. ports of entry," said Carol Cave, CPSC's Director of the Office of Import Surveillance. "Using data provided by CBP, CPSC is able to target and interdict dangerous and violative consumer goods before they enter the stream of commerce."

To ensure the safety of imported electrical products, CPSC is working closely with CBP to identify potentially unsafe shipments for CBP to check at ports of entry. CPSC has established permanent staffing at the CTAC in Washington, DC, and is working with CBP at ports to stop unsafe imports from entering the commerce of the U.S.

The CTAC combines resources and personnel from various government agencies to protect the American public from harm caused by unsafe imported products. The center accomplishes this through better communication, information-sharing, and by reducing redundant inspection activities.

Funny - I thought "ROLEX" only had one "L" in the Name. . . .

Top Story: HSI special agents seize $825,570 worth of counterfeit goods

You never know what you'll find at a flea market - antiques, toys or even a deal of a lifetime. But special agents with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) warn that those deals of a lifetime may be too good to be true.

Across the country, flea markets have become notorious hot spots for selling counterfeit goods. That was the case Feb. 13, when HSI special agents identified vendors peddling counterfeit purses, shoes and jewelry items at a flea market just outside Tampa, Fla.

"We had received tips that individuals were fraudulently selling trademarked items here," said Sue McCormick, special agent in charge of HSI Tampa.

That day, special agents seized more than 6,200 items with a manufacturer's suggested retail price of $825,570. The items falsely exhibited trademarks of Hello Kitty, Gucci, Rolex, Coach, Louis Vuitton, Nike and Perry Ellis.

"A good rule of thumb is for buyers to beware. When you purchase these items you're not getting a quality product from the trademark-holder. You're getting a substandard one," said McCormick. "You're also contributing to the loss of American jobs."

This seizure follows on the heels of an operation that took place earlier this month. On Feb. 1, HSI Tampa special agents seized nearly $1.2 million worth of fake designer purses, perfume, scarves and sunglasses from an individual already awaiting sentencing for trafficking in counterfeit goods.

ICE is the lead agency investigating intellectual property theft. The International Anti-Counterfeiting Coalition estimates that counterfeiting costs U.S. businesses between $200 and $500 billion each year and more than 750,000 American jobs.

Learn more about intellectual property theft at www.iprcenter.gov.

IP Infringement Can Kill - The Threat to Our Soldiers

California business owner sentenced for conspiring to sell counterfeit microelectronics to the US military

A business owner from Newport Coast, Calif., was sentenced yesterday to 30 months in prison for conspiring to sell counterfeit integrated circuits to the U.S. military, defense contractors and others.

The case was investigated by U.S. Immigration and Customs Enforcement's Homeland Security Investigations and the Naval Criminal Investigative Service.

Mustafa Abdul Aljaff, 32, pleaded guilty in January 2010 to federal charges of conspiracy to traffic in counterfeit goods and defraud the United States, and trafficking in counterfeit goods.

Upon completion of his prison term, Aljaff will be placed on three years of supervised release and be required to perform 250 hours of community service.

"Counterfeit electrical components destined for use by our military service members put those troops, and our national security, at great risk," said John P. Torres, special agent in charge, HSI Washington. "That is why HSI will continue to prioritize the investigation of companies and individuals who attempt to engage in this type of criminal act."

As part of the plea agreement, Aljaff agreed to forfeit industrial machinery which is designed to be used in the examination, testing, packaging, de-marking and marking of integrated circuits; computers and computer network servers; and his integrated circuit inventory. These items were seized from his business in connection with the execution of a search warrant on Oct. 8, 2009.

Aljaff also must pay $177,862 in restitution to the semiconductor companies whose trademarks were infringed as a result of his criminal conduct.

Co-defendant Neil Felahy, 34, the operations manager for Aljaff's company and his brother-in-law, is awaiting sentencing on Feb. 22 after pleading guilty to charges in the case.

"Today's prison sentence sends a message to the unscrupulous counterfeiters who put us all at risk by selling phony integrated circuits that end up in our military systems, medical devices and consumer products," said U.S. Attorney Ronald C. Machen, Jr., for the District of Columbia. "We will continue to prosecute, convict and seek prison sentences for the criminals who threaten our health, safety and national security with their greed."

"Counterfeit parts pose a grave threat to both the operational readiness and safety of our military forces," said John F. Wagner, special agent in charge of the Washington, D.C. office of NCIS. "These prosecution results embody the effectiveness of interagency law enforcement cooperation."

Aljaff pleaded guilty soon after his arrest and cooperated with authorities as the investigation continued. He owned MVP Micro and a host of other companies operating from the same location in Irvine, Calif. According to the government's evidence, he was the mastermind and leader of the highly sophisticated fraud scheme to import, sell, manufacture and distribute, in interstate and international commerce, counterfeit integrated circuits. The conspiracy took place between September 2007 and August 2009.

An integrated circuit is a high-tech device, incorporated into a computer board, which acts as a switch. Integrated circuits control the flow of electricity in the goods or systems into which they are incorporated. They are used in a variety of applications, including industrial, consumer electronics, transportation, infrastructure, medical devices and systems, spacecraft, and military.

Counterfeit integrated circuits can result in product or system failure or malfunction, and can lead to costly system repairs, property damage and serious bodily injury, including death. They also raise national security concerns because their history is unknown, including who has handled them and what has been done to them. In addition, the devices can be altered and certain devices can be preprogrammed. Counterfeits can contain malicious code or hidden "back doors" enabling systems disablement, communications interception and computer network intrusion.

Markings on integrated circuits indicate a part is "commercial-grade,""industrial-grade," or "military-grade." Military-grade markings signify that the part has been specially tested to withstand extreme temperature ranges and high rates of vibration.

According to the government's evidence, Aljaff and others sold the counterfeit devices, which included military-grade parts, through a cleverly designed web of corporations to unsuspecting customers in the United States and abroad. MVP and related companies sold and distributed counterfeit integrated circuits to approximately 420 buyers in the United States and abroad, including the U.S. Department of the Navy, defense contractors, other broker/distributors and numerous industry sectors, including transportation, medical services and aerospace.

During his guilty plea, Aljaff agreed that on more than 20 separate occasions, he and others imported into the United States from China and Hong Kong, approximately 13,073 integrated circuits bearing counterfeit trademarks, including military-grade markings, valued at about $140,835. Those counterfeit integrated circuits bore the purported trademarks of a number of legitimate semiconductor manufacturers.

One of the two counts to which Aljaff pleaded guilty involved a counterfeit, military-grade integrated circuit that he had purchased from a Florida-based company, Vision Tech Components, LLC. The owner of Vision Tech, Shannon Wren, was indicted in the U.S. District Court for the District of Columbia on conspiracy and other charges related to the firm's own sales of counterfeit integrated circuits. Also indicted in that case was Stephanie McCloskey, Vision Tech's administrative manager. Wren died pending trial. McCloskey pled guilty in November 2010 to charges of conspiracy to traffic in counterfeit goods and to commit mail fraud and was sentenced in October 2011 to a prison term of 38 months.


Remember to Check the "Bad Guy" Lists - or Find Yourself on Them

A former manager of a Netherlands-based freight-forwarding company pleaded guilty for conspiring to defraud the United States by facilitating the illegal export of goods to Iran, New Jersey U.S. Attorney Paul J. Fishman announced.

Ulrich Davis, 50, a Dutch citizen of Pumerend, The Netherlands, pleaded guilty to an Information charging him with conspiracy to defraud the United States through the violation of a U.S. Department of Commerce Temporary Denial Order ("TDO"). Davis entered his guilty plea before U.S. District Judge Claire C. Cecchi in Newark federal court.

According to the Information to which Davis pleaded guilty, other documents filed in this case and statements made in court:

Davis was the sales and business development manager for a company described in the Information as the "Netherlands Freight Forwarding Company" in 2007 and 2008. The Netherlands Freight Forwarding company was affiliated with a New York-based freight-forwarding company.

During that time, Davis facilitated shipments to be made to Iran without the necessary authorization from the United States government and in violation of the law.

In October 2007, an assistant secretary of commerce for export enforcement - at the behest of the U.S. Department of Commerce, Bureau of Industry and Security ("BIS") through its Office of Export Enforcement - issued a Temporary Denial Order (TDO) denying export privileges to the company of Davis' coconspirator under the Export Administration Regulations ("EAR"). The TDO prohibited any person, which included Davis, from directly or indirectly exporting or reexporting to or on behalf of the coconspirator, among others.

The coconspirator, who was located in another country, purchased U.S. origin goods from a New Jersey company, among other companies, for businesses and governmental agencies of Iran. The New Jersey company was in the business of reselling chemicals, lubricants, sealants and other products used in the aircraft industry.

As part of the conspiracy, Davis and his coconspirator directed the New York Freight Forwarding company to arrange for a trucking company to pick up commodities from the New Jersey company and transport them to New York on behalf of the coconspirator's company.

Davis admitted that in November 2007, he completed an air waybill that represented certain acrylic adhesives and spray paint coatings obtained from a New Jersey company were to be forwarded on behalf of the co-conspirator's company to a company in Iran after issuance of the TDO.

In a January 2008 e-mail regarding the shipments, Davis noted that, "99% of these goods were destined to be send [sic] to Teheran [sic]/Iran, which was and still is a very difficult destination due to political reasons. We have handled shipments to Teheran [sic] for various customers who had to shut down their operation because they were doing business with Teheran [sic]/Iran and inspite [sic] of the risk we take we always handled your shipments in a good manner."

Davis acknowledged that at no time was any relief, exception, or other authorization sought from the TDO.

The count to which Davis pleaded guilty carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is currently scheduled for May 15, 2012.

WHEN CAN INFORMATION GET YOU IN TROUBLE? Ask these 3 Companies about Anti-boycott Penalties


U.S. Department of Commerce Assistant Secretary for Export Enforcement, Bureau of Industry and Security, David W. Mills announced today that three companies agreed to pay a total of $ 35,200 in civil penalties to settle allegations that each violated the antiboycott provisions of the Export Administration Regulations (EAR). The companies are: Weiss-Rohlig USA LLC, JAS Forwarding (USA) Inc. (Los Angeles), and Rexnord Industries LLC.

Case summaries and additional information:

Weiss-Rohlig USA LLC (W-R), located in Cranford, NJ, has agreed to pay a civil penalty of $8,000 to settle two allegations that it violated the antiboycott provisions of the EAR. The Bureau of Industry and Security (BIS), through its Office of Antiboycott Compliance (OAC), alleged that during the year 2006, in connection with transactions involving the sale and/or transfer of goods or services (including information) from the United States to Kuwait, W-R on one occasion, furnished prohibited information in a statement regarding the blacklist status of the carrying vessel, in violation of the antiboycott provisions of the EAR and, on one occasion, failed to report to the Department of Commerce the receipt of a request to engage in a restrictive trade practice or boycott, as required by the EAR. Further information is available at: http://efoia.bis.doc.gov/antiboycott/violations/tocantiboycott.html

JAS Forwarding (USA) Inc. (Los Angeles) (JAS) has agreed to pay a civil penalty of $ 19,200 to settle three allegations that it violated the antiboycott provisions of the EAR. The Bureau of Industry and Security (BIS), through its Office of Antiboycott Compliance (OAC), alleged that during the year 2006, in connection with transactions involving the sale and/or transfer of goods or services (including information) from the United States to Lebanon and Kuwait, JAS, on three occasions, furnished prohibited information in statements certifying that the goods were neither of Israeli origin nor contained Israeli materials and in a statement regarding the blacklist status of the insurance company. Further information is available at: http://efoia.bis.doc.gov/antiboycott/violations/tocantiboycott.html

Rexnord Industries LLC (Rexnord), located in Milwaukee, WI, has agreed to pay a civil penalty of $ 8,000 to settle five allegations that it violated the antiboycott provisions of the EAR. The Bureau of Industry and Security (BIS), through its Office of Antiboycott Compliance (OAC), alleged that during the years 2007 through 2009, in connection with transactions involving the sale and/or transfer of goods or services (including information) from the United States to Qatar, Pakistan and Bangladesh, Rexnord, on one occasion, furnished prohibited information in a statement certifying that the goods were neither of Israeli origin nor contained Israeli materials and, on four occasions, failed to report to the Department of Commerce the receipt of a request to engage in a restrictive trade practice or boycott, as required by the EAR. Rexnord voluntarily disclosed the transactions to BIS. Further information is available at: http://efoia.bis.doc.gov/antiboycott/violations/tocantiboycott.html


The antiboycott provisions of the EAR prohibit US persons from taking certain actions with intent to comply with, further or support unsanctioned foreign boycotts, including furnishing information about business relationships with or in a boycotted country or with blacklisted persons. In addition, the EAR requires that persons report their receipt of certain boycott requests to the Department of Commerce. For more information, please visit BIS' Online Training Room at http://www.bis.doc.gov/seminarsandtraining/seminar-training.htm or contact the OAC Advice Line at (202) 482.2381.


BAD SPORTS: 300+ Websites Seized for Sports-Related IP Infringement

Furthering the US government's efforts to combat counterfeiting and piracy online, special agents recently seized a total of 307 websites. Sixteen of the sites illegally streamed live sporting telecasts over the Internet, including NFL games. Two hundred ninety-one website domain names were illegally selling and distributing counterfeit merchandise.

Additionally, Yonjo Quiroa, 28, of Comstock Park, Mich., was recently arrested by special agents with HSI. He is charged with one count of criminal infringement of a copyright related to his operation of websites that illegally streamed live sporting event telecasts and pay-per-view events over the Internet. Quiroa operated nine of the 16 streaming websites that were seized, and he operated them from his home in Michigan until yesterday's arrest.

The website seizures during Operation Fake Sweep represent the 10th phase of Operation In Our Sites, a sustained law enforcement initiative targeting counterfeiting and piracy on the Internet. The 307 websites have been seized by law enforcement and are now in the custody of the federal government. Visitors to these websites will then find a seizure banner that notifies them that the domain name has been seized by federal authorities and educates them that willful copyright infringement is a federal crime.

American business is threatened by those who pirate copyrighted material and produce counterfeit trademarked goods. Criminals are attempting to steal American ideas and products and sell them over the Internet, in flea markets, in legitimate retail outlets and elsewhere. Intellectual property (IP) thieves undermine the U.S. economy and jeopardize public safety. American jobs are being lost, American innovation is being diluted - and organized criminal enterprises are profiting from their increasing involvement in IP theft.

Since the launch of Operation In Our Sites in June 2010, the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) has seized a total of 669 domain names.

INTERCEPTION !! ICE Seizes nearly $5 Million in fake NFL Gear

Speaking at a National Football League (NFL) news conference on Thursday (2 Feb 2012), U.S. Immigration and Customs Enforcement (ICE) Director John Morton, U.S. Customs and Border Protection (CBP) Director of Field Operations in Chicago David Murphy and NFL Vice President for Legal Affairs Anastasia Danias announced the record-breaking results of a nationwide enforcement operation targeting stores, flea markets and street vendors selling counterfeit game-related sportswear throughout the country. Special agents and officers also targeted illegal counterfeit imports into the United States, and seized hundreds of websites engaged in counterfeiting and piracy online. The initiative, dubbed Operation Fake Sweep, commenced Oct. 1, 2011.

Fake jerseys, ball caps, t-shirts, jackets and other souvenirs are among the counterfeit merchandise and clothing confiscated by teams comprised of: ICE's Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP), U.S. Postal Inspection Service (USPIS), Indianapolis Metropolitan Police Department and the Indiana State Police - all in partnership with the NFL.

'Hard goods' seizures

Special agents from HSI and officers with CBP operated in multiple teams with the NFL and various law enforcement agencies throughout the nation to identify illegal shipments imported into the U.S., as well as stores and vendors selling counterfeit trademarked items. With three days left before Super Bowl XLVI, these teams have already seized 42,692 items of phony Super Bowl-related memorabilia along with other counterfeit items to date for a total take of more than $4.8 million - up from $3.72 million last year.

During this operation, an additional 22,570 items of counterfeit merchandise and clothing representing other sports leagues, including Major League Baseball, National Basketball Association and National Hockey League were seized by law enforcement. In total, this operation netted 65,262 counterfeit items worth $6.4 million.

"While most people are focusing on whether the Patriots or Giants will win on Sunday, we at ICE have our sights on a different type of victory: defeating the international counterfeiting rings that illegally profit off of this event, the NFL, its players and sports fans," said ICE Director Morton. "In sports, players must abide by rules of the game, and in life, individuals must follow the laws of the land. Our message is simple: abiding by intellectual property rights laws is not optional; it's the law."

"The NFL is committed to protecting fans and local businesses from being victimized by counterfeiters who are looking to profit illegally off of the public's enthusiasm for the NFL," said NFL Vice President Danias. "We are grateful for Homeland Security Investigations' tireless efforts in combating intellectual property theft and are pleased to be working along with them and the Indianapolis Metropolitan Police Department on this important issue."

Source: CBP

CBP Donates Nearly $1.3 Million worth of Merchandise to Charities

U.S. Customs and Border Protection recently announced the donation of more than $1 million worth of abandoned and unclaimed merchandise to charities across the nation. Partnering with storage warehouses and local municipalities, several ports of entry were able to donate items to local charities over the last few weeks.

CBP officers in Tampa, Fla. help transfer donated merchandise to an organization set up to assist victims of domestic violence.
CBP officers in Tampa, Fla. help transfer donated merchandise to an organization set up to assist victims of domestic violence.
Some of the donations included clothes and bedding to an organization assisting women of domestic abuse in Tampa; men's and women's clothing to a Mission in Ft. Worth, Texas; and clothing and linens to the Salvation Army in Savannah, Ga. Donations made include more than $1.25 million worth of various articles, including apparel, toys, bedding and footwear.

"During these difficult economic times, charities are on the front lines of serving those in need and CBP is proud to support them by donating unclaimed items in our possession," said Acting Assistant Commissioner Kevin McAleenan. "We especially appreciate the support from our local partners as these donations would not have happened with out their assistance."

CBP relies on the strong partnerships it maintains with both the warehouses, who agreed to waive the storage fees on items that were donated, as well as the local governments and municipalities who worked with CBP to ensure federal rules and regulations were followed. While CBP, as a federal entity, is prohibited from donating General Order merchandise to specific individuals, the agency was able to transfer the merchandise to local municipalities who would make the determination as to the recipient of the goods.

When items arrive at a port of entry without proper contact information for the shipper or recipient, or lack certain other documentation needed to make legal entry into the United States, the goods enter the ranks of General Order merchandise. After six months with no claim, the merchandise then becomes abandoned/unclaimed and property of the U.S. government. These items are then eligible to be sold at monthly auctions, however sometimes CBP is able to donate this property to worthy causes.

While the donation of General Order merchandise is not something CBP is able to do on a regular basis, the agency does have a history of donating seized property. Ports of entry work with points of contact they maintain within their local municipalities to ensure that if a need arises, seized property that meets safety and trademark regulations, can be donated as necessary.

Mixed Signals: Scientist faces Jail for Illegal Antenna Export Scheme

Rudolf L. Cheung, 57, a resident of Massachusetts, recently pleaded guilty in federal court in the District of Columbia to conspiracy to violate the Arms Export Control Act in connection with the unlawful export of 55 military antennae from the United States to Singapore and Hong Kong.

Cheung serves as the head of the Research & Development Department at a private company that manufactures antennae. Over the past 17 years, he has designed or supervised the development of a full library of antennae made by the firm, many of which have military applications and are used by defense contractors. Some of Cheung's inventions 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 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.

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.

According to court documents, Cheung was aware that the purchases by Co-conspirator C were intended for export from the United States 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 United States, 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 United States.

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.

Corezing, based in Singapore, has been charged in a separate indictment in the District of Columbia 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 United States is seeking their extradition, in connection with the export of 6,000 radio frequency modules from the United States to Iran via Singapore, some of which were later found in improvised explosive devices in Iraq.

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