SAN JOSE MAN INDICTED FOR EXPORTING MISSILE TECHNOLOGY TO CHINA WITH…

SAN JOSE MAN INDICTED FOR EXPORTING MISSILE TECHNOLOGY TO CHINA WITHOUT AN EXPORT LICENSE

SAN JOSE – LAWFUEL – Press Release Service United States Attorney Kevin V. Ryan announced that a federal grand jury in San Jose yesterday indicted Yueqiang Chen, a.k.a. Bill Chen, for exporting items without a license for use in the design, development, production, and use of missiles to an end-user in China. Mr. Chen is the General Manager and Chief Representative of Data Physics Corporation in China. Data Physics is a San Jose, California, company engaged in the business of manufacturing and selling signal processing equipment for use in noise and vibration testing, including a line of electro-dynamic shakers, vibration controllers, and dynamic signal analyzers. These items are utilized to test missile vibration.

These charges are the result of an investigation by Special Agents from the Office of Export Enforcement, Bureau of Industry and Security, Department of Commerce.

“This indictment demonstrates our continuing commitment to preventing the illegal and unlicensed export of military technology abroad,” said U.S. Attorney Kevin V. Ryan.

Bill Chen, 45, of San Jose, allegedly exported vibration test and shaker equipment, without a license from the Bureau of Industry and Security, to an end-user in China while knowing that such items would be used in the design, development, production, and use of missiles. According to the indictment, on five different occasions, Mr. Chen, a permanent resident alien of the U.S., knowingly violated Export Administration Regulations as follows:

On or about January 22, 2003, Chen exported one model 421.20 Spherical Coupling and one model 42 3.20 Spherical Coupling

On or about April 2, 2003, Chen exported two M1216V shaker systems

On or about February 10, 2005, Chen exported one DMA4020E/2016EVH shaker system

On or about June 23, 2005, Chen exported one DMA4020E/2016EVH shaker system, and,

On or about July 3, 2005, Chen exported one model 421.20 Spherical Coupling and one model 42 3.20 Spherical Coupling

An affidavit filed in connection with a criminal complaint also alleges that the defendant willfully and knowingly exported the items to the “3rd Academy” in China, an entity engaged in the research, design, development, and production of cruise missiles. The complaint also alleges that the defendant used the false end-user name of “27th Locomotive Factory” to disguise the true destination of the exports.

Mr. Chen was arrested on the criminal complaint on May 18, 2006, and made his initial appearance in federal court in San Jose on that day. He was released on $300,000 bond. The defendant’s next scheduled appearance is at 2:00 p.m. on June 8, 2006, for preliminary hearing before Magistrate Judge Seeborg.

The maximum statutory penalty for each count of violation of export administration regulations regarding exports to china in violation of 18 U.S.C. § 1705(b) & 15 C.F.R. § 744.6(a)(1)(i)(B) is 20 years imprisonment and a fine of $50,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

An indictment contains only allegations against an individual and, as with all defendants, Mr. Chen must be presumed innocent unless and until proven guilty.

Matt Parrella is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Brenda Hodgen. The prosecution is the result of an investigation by the Office of Export Enforcement, Bureau of Industry and Security, Department of Commerce.

Further Information:

A copy of this press release may be found on the U.S. Attorney’s Office’s website at www.usdoj.gov/usao/can.

Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl.

Judges’ calendars with schedules for upcoming court hearings can be viewed on the court’s website at www.cand.uscourts.gov.

All press inquiries to the U.S. Attorney’s Office should be directed to Luke Macaulay at (415) 436-6757 or by email at [email protected]

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