Louis Brothers, Exporting Tech to China, Kentucky 2023

Exporting Tech

Covington, Kentucky – Louis Brothers, 63, a former president and CEO of Valley Forge Composite Technologies, was sentenced to 93 months in prison for his role in illegally exporting sophisticated technology equipment to the People’s Republic of China (PRC) and concealing the unlawful proceeds, announced U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky and Assistant Attorney General for National Security John P. Carlin.

Brothers, of Covington, Kentucky, was sentenced for conspiracy, aiding and abetting in the illegal export of defense articles, and conspiracy to launder funds. The sentence also includes a monetary judgment of $1.1 million.

According to the investigation, Brothers admitted that from 2009 until 2013, he unlawfully exported microcircuits to the PRC, labeling his shipments as “computer parts” in order to conceal the true identity of the items. Brothers further admitted that he falsified paperwork to make it appear that the proceeds he received from his business with the PRC were actually profits from a business he owned in Kentucky.

The investigation was conducted by the FBI and HSI. The case is being prosecuted by Assistant U.S. Attorney Robert McBride of the Eastern District of Kentucky and Trial Attorney Casey Arrowood of the National Security Division’s Counterintelligence and Export Control Section.

U.S. District Judge Amul R. Thapar of the Eastern District of Kentucky handed down the sentence, which includes the 93 months in prison and the $1.1 million monetary judgment.

This sentence serves as a reminder of the consequences of violating our nation’s export laws and engaging in financial crimes. We will continue to work tirelessly to hold individuals accountable for their actions and protect our national security.

Brothers pleaded guilty to the offenses in July 2015. The investigation and prosecution of this case demonstrates the commitment of the U.S. Attorney’s Office and its law enforcement partners to vigorously enforce our nation’s export laws and prevent the unauthorized transfer of sensitive technology.

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