New Zealand Man William Ali Convicted in Seattle Missile Parts Smuggle

A New Zealand national was found guilty yesterday of attempting to traffic high-grade missile and spacecraft navigation components out of the United States and into China. William Ali, 38, was convicted in U.S. District Court in Seattle on two federal felonies: conspiracy to violate the Arms Export Control Act and attempting to violate the Act. After just three hours of deliberation, the jury delivered a swift verdict. Ali remains in federal custody awaiting sentencing on March 16, 2017.

The case centers on a year-long scheme beginning in April 2015, when Ali began emailing U.S. distributors seeking to purchase sensitive accelerometers designed for missile guidance and space applications. These components are strictly export-controlled and require a license from the U.S. State Department—something Ali never obtained. His inquiries triggered an alert with the Department of Homeland Security, which launched an investigation.

Over the next 12 months, Ali engaged in repeated communications—via email and phone—with both a person in China he referred to as “Michael” and an undercover Homeland Security agent. Michael was seeking not only accelerometers but also military-grade gyroscopes. Ali made no secret of the illegal nature of the transaction, sending emails acknowledging that shipping the components to China would violate U.S. law.

Ali funneled nearly $25,000 to the undercover agent—money he said came from Michael—to secure the restricted parts. On April 16, 2016, he flew to Seattle and met the agent at a downtown hotel. Moments after taking possession of the devices, federal agents moved in and arrested him. Found in his possession: a one-way airline ticket to Hong Kong and a valid Chinese visa.

The charges carry serious penalties. Conspiracy to violate the Arms Export Control Act is punishable by up to five years in prison and a $250,000 fine. The attempt charge could land Ali up to 20 years behind bars and a $1 million fine. U.S. District Judge Thomas S. Zilly will weigh the facts, Ali’s background, and the national security implications before imposing sentence.

The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The prosecution was led by Assistant U.S. Attorneys Thomas Woods and Rebecca Cohen. Authorities say the case underscores ongoing efforts to prevent the illicit transfer of U.S. defense technology to foreign adversaries.

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