Chong Sik Yu, Export Control Reform Act Violation, New York 2022
Chong Sik Yu, a/k/a “Chris Yu,” President of America Techma Inc. (ATI), and Yunseo Lee, an ATI Sales Representative, were arrested today in Manhattan federal court for allegedly conspiring to unlawfully export dual-use electronics components, in violation of the Export Control Reform Act, and to commit wire fraud, bank fraud, and money laundering.
Assistant Attorney General for National Security John C. Demers said, “The Department’s fight against illegal technology transfer to China is no more critical than in areas like those involved in this case — controlled items used in missile and nuclear technology. We will do everything in our power to disrupt illegal exports like these that jeopardize our national security.”
Acting U.S. Attorney Audrey Strauss stated, “Chong Sik Yu and Yunseo Lee are accused of violating U.S. export laws by sending electronics components with military applications to Hong Kong and China. Together with the Commerce Department and all of our law enforcement partners, we will continue to protect our national security by preventing dual-use technologies from being sent abroad without the required licenses.”
OEE Special Agent in Charge Jonathan Carson said, “A top priority of the Office of Export Enforcement is identifying and disrupting the illicit export of items to Hong Kong and China that undermine the national security of the United States. We will continue to work with our law enforcement partners using criminal prosecutions to keep the most dangerous goods out of the most dangerous hands.”
According to the criminal Complaint, unsealed today in Manhattan federal court, since at least 2019, a U.S. company named America Techma Inc. (ATI) has illegally exported electronic components from the United States to Hong Kong for apparent re-export to other countries, including China, in violation of the Export Control Reform Act of 2018 (ECRA). The Commerce Department administers export-licensing and other requirements for the export of goods, software, and technologies from the United States to foreign countries.
The alleged scheme involved Yu and Lee working together and with others to ship what they knew to be export-controlled items to Hong Kong and China. For instance, in June 2019, ATI obtained electronics components — which are export-controlled under the CCL for missile technology, nuclear nonproliferation, and anti-terrorism reasons — from a U.S. supplier (U.S. Supplier-1), and then sent those components to a trading company in Hong Kong (Hong Kong Trading Company-1). In January 2020, ATI attempted to send to Hong Kong Trading Company-1 several electronic components, which are export-controlled under the CCL for anti-terrorism, national security, regional stability, missile technology, nuclear nonproliferation, and anti-terrorism.
Yu and Lee were arrested this morning and are expected to be presented later today before U.S. Magistrate Judge Kevin Nathaniel Fox in Manhattan federal court. The charges against Yu and Lee include conspiring to unlawfully export dual-use electronics components, in violation of the Export Control Reform Act, and to commit wire fraud, bank fraud, and money laundering.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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