Chinese citizen gets 12 months for military equipment scheme
By RANDALL BEACH | The New Haven Register (Tribune News Service) | Published: December 21, 2016
HARTFORD, Conn. — A citizen of China Tuesday received a prison sentence of approximately 12 months for attempting to purchase and export to China without a license equipment used in military satellites and missiles.
The sentencing was announced in a release by U.S. Attorney for the District of Connecticut Deirdre M. Daly and Acting Assistant Attorney General for National Security Mary B. McCord.
U.S. District Judge Robert N. Chatigny imposed the sentence on Jiang Yan, 34, of Shenzhen, China. He has already served the prison time imposed, as he has been detained since his arrest on Dec. 10, 2015, in Milford.
Yan also was convicted of conspiring to sell counterfeits of the sophisticated integrated circuits to a purchaser in America.
According to court documents and court statements, Yan conspired in the scheme with Xianfeng Zuo and Daofu Zhang. All three of them operated businesses in China that bought and sold electronic components, including integrated circuits.
In the summer of 2015, the documents noted, Zuo asked Yan to locate and purchase several advanced circuits made by Xilinx Corp. That equipment can be used on missiles and surveillance satellites because of its radiation tolerance in space, according to the release.
Yan then asked an American to locate the circuits and sell them to Yan.
The American explained they can’t be shipped outside the U.S. without an export license but Yan still wished to make the purchase.
According to the documents, when the American expressed concern the circuits would have to be stolen from military inventory, Yan proposed to supply the U.S. source with “fake” circuits that “look the same,” to replace the ones to be stolen from the military.
In November 2015, the documents stated, Zhang shipped from China to the American two packages containing a total of eight counterfeit circuits, each bearing a counterfeit Xilinx brand label. In early December 2015, Yan, Zhang and Zuo flew from China to America to complete the purchase.
Then on Dec. 10, 2015, the three conspirators drove to a location near Interstate 95 in Milford, where they planned to meet the American to make the transaction.
But federal agents arrested all three of the Chinese men at that meeting site.
On March 7, 2016, Yan pleaded guilty to one count each of conspiracy to traffic in counterfeit goods and attempted unlicensed export of export-controlled items, according to the release.
As part of his sentence, he was ordered to forfeit $63,000 in cash seized in conjunction with his arrest, the release said.
Yan will be transferred to the custody of the U.S. Department of Homeland Security and deported to China.
Zhang and Zuo also pleaded guilty. Each was sentenced to 15 months in prison.
The federal agencies who investigated the case included the Defense Criminal Investigative Service, Department of Homeland Security, Department of Commerce, the FBI and the Air Force Office of Special Investigations.
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