(The following press release from the U.S. Department of Justice was received
by e-mail. The sender verified the statement.)
TUESDAY, DECEMBER 18, 2012
TWO CHINESE INDIVIDUALS CHARGED IN SCHEME TO OBTAIN
CONTROLLED DUAL-USE AMERICAN TECHNOLOGY
Defendants Allegedly Stole the Name of an American Business in Attempt to
Purchase Programmable Logic Devices Capable Of Military Applications
PORTLAND, Ore. -- U. S. Attorney S. Amanda Marshall, F.B.I. Special
Agent-in-Charge Greg Fowler, and Department of Commerce, Bureau of Industry and
Security, Office of Export Enforcement, Special Agent-in-Charge Julie L.
Salcido announced today the unsealing of a 12-count indictment charging Wan Li
Yuan and another unknown Chinese resident with conspiracy to violate the Export
Administration Regulations and smuggle goods, conspiracy to commit money
laundering and 10 counts of money laundering in connection with an attempt to
obtain dual-use programmable logic devices (PLDs) which are manufactured by
Lattice Semiconductor Corporation of Hillsboro, Ore., to perform at extended
temperature ranges and tested to military specifications.
According to the indictment, while operating from the People’s Republic of
China, Yuan used the alias “Nicholas Bush,” and a second Chinese resident used
the alias “Jason Jiang,” as they created a sophisticated scheme to conceal
their true identity and location in order to mislead U.S. companies into
believing they were dealing with American customers so that the defendants
could procure and send sensitive technologies to China without the required
Specifically, Yuan and Jiang sought to procure Lattice Semiconductor PLDs
designed to operate at extreme temperature ranges and which can have military
applications such as in missiles and radar systems. To further his efforts,
the indictment alleges that Yuan created a fake website and email addresses
using the name of a legitimate New York-based company. Yuan requested U.S.
companies to ship the desired parts to the address of a freight forwarder in
New York, which he also falsely represented as being associated with the New
York company whose business name Yuan had stolen.
Through the investigation and use of an undercover operation, the FBI and
Department of Commerce were able to seize approximately $414,000 in funds sent
by Yuan as down payments for the Lattice PLDs.
“The Department of Justice is committed to finding, charging, and prosecuting
anyone who attempts to illegally procure American technology,” said U. S.
Attorney Marshall. “Even if we cannot arrest them overseas, we will seek to
forfeit any assets we find in the United States.”
“Oregon is rich with high-tech innovators and companies that power the U.S.
economy,” said FBI Special Agent in Charge Fowler. “These companies can become
targets for foreign nationals and governments who want to take advantage of
American research and production while taking aim at American national security
interests. The FBI works closely with our industry partners to prevent the
illegal acquisition of export-controlled sensitive U.S. technologies.”
“This indictment tells illicit traders that violating the U.S. export
regulations threatens our national security and will be dealt with
accordingly,” said Commerce Special Agent-in -Charge Salcido.
Lattice Semiconductor cooperated with the government in this investigation.
“As a global technology company, Lattice is committed to strict compliance with
U.S. and other applicable export controls,” stated Byron Milstead, Lattice’s
general counsel. “We appreciate the support provided by U.S. enforcement
authorities in assisting us in our compliance efforts.”
A criminal indictment is only an allegation and not evidence of guilt.
Defendants are presumed to be innocent unless and until proven guilty.
The investigation was conducted jointly by the Portland Office of the FBI and
the U.S. Commerce Department’s Bureau of Industry and Security’s Office of
Export Enforcement, San Jose Field Office, and is being prosecuted by Assistant
U.S. Attorney Charles F. Gorder, Jr.
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