Bo Cai, Arms Export Control Act Violations, New Mexico 2013

ALBUQUERQUE – In a shocking turn of events, Bo Cai, a 28-year-old Chinese national, has pleaded guilty to violating the Arms Export Control Act and the International Traffic in Arms Regulations (ITAR) by scheming illegally to export defense articles with military application to the People’s Republic of China.

According to court filings, Bo Cai conspired with his cousin, Wentong Cai, to acquire sensors manufactured for sale to the U.S. Department of Defense. The sensors were primarily used in high-level applications, such as line-of-sight stabilization and precision motion control systems. However, the Arms Export Control Act and the ITAR prohibit the export of defense-related materials from the United States without obtaining a license or written approval from the U.S. Department of State.

Bo Cai’s scheme was discovered in December 2013, when an undercover HSI agent responded to Wentong Cai’s overtures. After negotiations by telephone and email, Bo Cai and Wentong Cai traveled to New Mexico, where they obtained a sensor from undercover HSI agents and developed a plan for smuggling the sensor out of the United States to China.

On December 11, 2013, Bo Cai was arrested at an airport in Los Angeles, Calif., as he was preparing to board a flight to China after the sensor was discovered concealed in a computer speaker in his luggage. Bo Cai faces a statutory maximum penalty of 20 years in prison on the Arms Export Control Act charge, ten years in prison on the smuggling charge, and five years on the conspiracy charge.

U.S. Attorney Damon P. Martinez stated, “It is a top priority for the Justice Department and the District of New Mexico to protect our national security and our technology from disclosure to foreign governments. This prosecution demonstrates the federal law enforcement community’s commitment to safeguarding our nation’s military secrets by keeping America’s critical technology from falling into the wrong hands.”

HSI Special Agent in Charge Dennis A. Ulrich, II, added, “One of HSI’s highest priorities is to prevent illicit procurement networks from illegally obtaining U.S. military products, sensitive dual-use technology, weapons of mass destruction (WMD), or chemical, biological, radiological and nuclear materials. This investigation reflects the outstanding efforts of HSI and its partner agencies in protecting American ingenuity and sensitive military hardware.”

Under the terms of his plea agreement, Bo Cai will be deported after completing his prison sentence. He remains in custody pending his sentencing hearing, which has yet to be scheduled.

Related Federal Cases