Hong Wei Xian and Li Li, Illicit Export of Military Satellite Components, Virginia 2010

Defendants Attempted to Smuggle Thousands of Radiation-Hardened Microchips

Two Chinese nationals have been indicted for attempting to obtain and export thousands of radiation-hardened microchips, which are prohibited defense items used in the military and aerospace industry.

"Hong Wei Xian, aka ‘Harry Zan,’ 32, and Li Li, aka ‘Lea Li,’ 33, both from the People’s Republic of China (PRC), were charged in a two-count indictment accusing them of conspiring to violate the Arms Export Control Act and to smuggle goods from the United States and the attempted export of U.S. Munitions List items in violation of the Arms Export Control Act," according to a federal indictment unsealed in Alexandria, Va. on April 1, 2011.

If convicted, they face a maximum penalty of five years in prison for the conspiracy charge and 20 years in prison on the export violation charge.

"Xian is the president of Beijing Starcreates Space Science and Technology Development Company Limited (Beijing Starcreates), and Li is the company’s vice president," the indictment states. Beijing Starcreates engages in the business of importing and selling programmable read-only memory microchips to China Aerospace Science and Technology Corporation, which is controlled by the PRC government.

According to the indictment, Xian and Li knew a license was required to export defense articles, but did not seek to obtain one because it was difficult, time-consuming, and would require them to identify the end user and describe the end use. They are accused of conspiring to break up orders into multiple shipments and designate countries outside of the PRC for delivery to avoid drawing attention to the orders.

The indictment states that Xian and Li contacted a company in the Eastern District of Virginia and sought to export thousands of radiation-hardened PROMs from that company from April 2009 to Sept. 1, 2010.

This case was investigated by ICE HSI and DCIS, with assistance from ICE HSI Office of International Affairs and the Department of Justice’s Office of International Affairs. Assistant U.S. Attorney James P. Gillis of the Office’s National Security and International Crime Unit, and Trial Attorney Brandon L. Van Grack of the Justice Department’s National Security Division are prosecuting the case on behalf of the United States.

Criminal indictments are only charges and not evidence of guilt.

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