A Chinese national has been charged in a scheme to illegally export US semiconductor technology to China, federal prosecutors announced Monday.
Han Li, 44, also known as Anson
Li, and Lin Chen, 64, were indicted on charges related to the conspiracy, which allegedly took place between May 2015 and August 2018.
The indictment alleges that Li and Chen conspired to evade export restrictions imposed by the Department of Commerce on Changdu GaStone Technology Company (CGTC), a Chinese company added to the Entity List in August 2014. The defendants allegedly used intermediary companies to obtain a DTX-150 Automatic Diamond Scriber Breaker machine from Dynatex International, a California-based company.
The machine, used to cut thin semiconductors, requires a license and authorization to export to CGTC under Department of Commerce regulations. Li and Chen allegedly sought to obtain the machine for CGTC without obtaining the necessary licenses.
"The export restrictions at issue in this case were put in place to prevent the illicit procurement of commodities and technologies for unauthorized military end use in the People’s Republic of China," said US Attorney for the Northern District of California Ismail Ramsey.
"This office will continue to vigorously enforce the nation’s export laws, including those pertaining to advanced technologies, to protect our national security."
The indictment was unsealed on Monday, and Chen was arrested in Chicago the previous day. Li’s whereabouts are currently unknown.
The case highlights the importance of interagency collaboration in preventing illegal exports that could compromise sensitive technologies and our national security. Federal regulations restrict the export of certain items to companies, research institutions, and other entities identified on the Department of Commerce’s Entity List.
"Stopping the flow of US semiconductor technology that supports the PRC’s military modernization efforts is a top priority for the Office of Export Enforcement," said Brent Burmester, Special Agent in Charge of the US Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, San Jose Field Office.
"BIS will continue to prioritize investigations involving exports of advanced technologies to prohibited parties to protect US national security."
The defendants face charges of conspiracy to commit a crime against the United States, in violation of the International Emergency Economic Powers Act (IEEPA) and Export Administration Regulations (EAR). If convicted, they face up to 20 years in prison and a fine of up to $1 million.
The US Attorney’s Office for the Northern District of California is handling the case, with the assistance of the FBI, US Customs and Border Protection, and the Department of Commerce’s Bureau of Industry and Security.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Cybercrime
- Source: Official Source ↗
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