from:http://www.newsday.com/news/local/wire/newjersey/ny-bc-nj--weaponssales0913sep13,0,3807041.story?coll=ny-region-apnewjersey
Four admit illegal sale of electronics gear to China
By JEFFREY GOLD
Associated Press Writer
NEWARK, N.J. -- Four people who operated an electronics firm in southern New Jersey pleaded guilty Tuesday to violating export regulations by shipping nearly $400,000 of electronics that could be used for military purposes to entities controlled by the Chinese government.
The case involving Manten Electronics Inc. is the latest, but far from the largest, to deal with illegal technology and arms exports to China.
U.S. Immigration and Customs Enforcement said it has seen a dramatic increase in the shipment of sensitive technology and weapons components to China. Since January 2000, the agency has launched more than 400 investigations into illegal technology and arms exports to China.
The four people at Manten, as well as four people at Universal Technologies Inc. in Mount Laurel, were arrested in July 2004 following an 18-month investigation by ICE, the FBI and the U.S. Commerce Department.
Prosecutors have reached plea deals with the Universal defendants but the agreements have not yet been formalized, Assistant U.S. Attorney Judith H. Germano said.
Among the restricted items Manten obtained were monolithic microwave integrated circuits, an electronics component used in a variety of weapons systems and found on U.S. bombers, fighter aircraft, military helicopters, missiles and satellites, according to court papers.
In court Tuesday, Manten president Xu Weibo and his three co-defendants each pleaded guilty to a single charge of conspiring to violate export laws, admitting that they sent restricted items at the request at least two Chinese agencies, the 20th and 41st Research Institutes. They admitted they lied to U.S. distributors and on shipping documents to conceal the nature of the shipments. The conspiracy charge carries up to five years in prison and a fine of up to $250,000 or twice any profit.
The two Chinese agencies are part of the Ministry of Information Industry and develop military and civilian communications technology, according to court papers. Specialties of the 20th include aircraft landing systems and military radio-navigation technology. Work at the 41st includes military amplifiers and testing devices for military instruments.
The Commerce Department in May 2001 said the 20th Research Institute "poses an unacceptable risk in the development of weapons of mass destruction or the missiles used to deliver weapons of mass destruction," according to court papers.
Weibo, 38, also pleaded guilty to violating the Export Administration Act, which carries up to 10 years in prison and a fine of up to $250,000 or five times the value of the export or twice any profit; and a count of violating the Arms Export Control Act, which carries up to 10 years in prison and a fine of up to $1 million or five times the value of the export or twice any profit.
Also pleading guilty was his wife, purchasing agent Xiu Ling Chen, also known as Linda, 33, of Mount Laurel; her brother, vice president Hao Li Chen, known as Ali, 29, of Mount Laurel; and his wife, controller Kwan Chun Chan, known as Jenny, 29, of Mount Laurel.
The four agreed to forfeit $391,337, which Germano said represented the revenue from illegal sales made from June 2002 until Manten was closed with the arrests in July 2004.
All four are naturalized U.S. citizens from China. The women used a translator to follow court proceedings, but answered in English when questioned by U.S. District Judge Joseph A. Greenaway Jr. They remain free on bail pending sentencing, scheduled for Feb. 6.
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On the Net: U.S. Attorney's Office in Newark:
http://www.njusao.org/break.html