PRECISION IMAGE CORPORATION, a Woodinville, Washington based company and its owner CHIH-KWANG HWA, pleaded guilty today in U.S. District Court in Seattle to violating the Arms Export Control Act and wire fraud, announced U.S. Attorney Jenny A. Durkan.
The company, operated by HWA out of his Woodinville home, obtained contracts to supply circuit boards to the U.S. Navy by falsely claiming the boards would be manufactured in the United States. Instead, HWA illegally sent restricted information to a company in Taiwan for the boards to be manufactured there.
The company faces a fine of up to $1,000,000 and HWA faces up to 20 years in prison when sentenced by U. S. District Judge James. L. Robart on October 28, 2013.
"Our national security depends upon protecting our military systems and their specifications. Going ‘on the cheap,’ gave this defendant an unfair advantage over other suppliers and risked our security," said U.S. Attorney Jenny A. Durkan. "Protecting our military technical data and enforcing our export restrictions are critical priorities of the U.S. Attorney’s Office."
According to the charging information and the plea agreements in the case, between 2009 and 2011, HWA obtained contracts worth $180,034 to supply circuit boards to the U.S. Navy. The Navy supplied technical data to PRECISION IMAGE that contained the technical specifications for the circuit boards. This technical data was designated on the United States Munitions List, International Traffic in Arms Regulations. As a result, this technical data could not legally be transmitted outside the United States without a license from the U.S. State Department.
Under the terms of the plea agreement, prosecutors will recommend the company pay a $300,000 fine and HWA serve a sentence within the anticipated guidelines range of 15-21 months in prison. Judge Robart is free to accept or reject these recommendations at the time of sentencing.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Naval Criminal Investigative Service. The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Thomas Woods.
Related Federal Cases
- FDIC Approves GENIUS Act, Washington, 2023 · Washington
- FDIC Not Specified, Community Reinvestment Act Support, Washington … · Washington
- Federal Deposit Insurance Corporation, Community Reinvestment Act C… · Washington
- FDIC, Community Reinvestment Act Examination Violations, Washington… · Washington
- FDIC, Failure to Comply with Community Reinvestment Act, Washington… · Washington
Key Facts
- State: Washington
- Category: Weapons|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News