Where Industry and Security Intersect
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| FOR IMMEDIATE RELEASE | BUREAU OF INDUSTRY AND SECURITY |
| Wednesday, August 10th, 2011 |
Office of Public Affairs |
| www.bis.doc.gov | 202-482-2721 |
WASHINGTON –The Commerce Department’s Bureau of Industry and Security (BIS) announced that Jianwei Ding, of Singapore, who currently is incarcerated in federal prison, has agreed to pay a $100,000 civil penalty and have his export privileges denied for a period of 25 years, to settle allegations that he conspired to violate the Export Administration Regulations (EAR) by knowingly and willfully attempting to export carbon fiber to China for use by the China Academy of Space Technology (CAST) without the required U.S. Government authorization.
The carbon fiber materials involved are controlled by BIS for nuclear non-proliferation and national security reasons and valued at approximately $315,000. BIS alleged that from February 2007, through at least April 2008, Ding conspired with others to export two types of this material to CAST in China, via Hong Kong and Singapore, without the required Department of Commerce licenses.
Ding utilized his position as a manager of several Singapore-based companies that acquired items for CAST to further the conspiracy. He directed the activities of individuals and entities in the United States and Singapore to deceive U.S. suppliers and avoid detection by law enforcement, and provided the money used to obtain the controlled materials for export from the United States to China.
Ding took these actions despite repeated warnings that an export license was required for the export of carbon fiber to China. After the material had been purchased and stored in New York as part of the scheme, Ding ultimately directed a co-conspirator by email to export some carbon fiber to Hong Kong and some to a company under Ding’s control in Singapore.
The items were stopped by Special Agents of BIS’s Office of Export Enforcement (OEE) before they could be exported. Ding subsequently was arrested by OEE Special Agents and Homeland Security Investigation Special Agents when he attempted to enter the United States. Prior to settling BIS’s administrative charge, Ding entered a guilty plea to criminal charges of conspiracy to violate the EAR and was sentenced to a period of 46 months imprisonment.
"In addition to the criminal penalties imposed, this case should serve as a strong message that BIS will also impose severe administrative penalties on individuals who willfully attempt to harm the national security of the United States,” said Assistant Secretary of Commerce for Export Enforcement David W. Mills. "I commend the Special Agents from our Chicago Field Office and the Office of Chief Counsel for their work on this investigation and subsequent litigation.”
BACKGROUND
BIS controls exports and re-exports of dual-use commodities, technology, and software for reasons of national security, missile technology, nuclear non-proliferation, chemical and biological weapons non-proliferation, crime control, regional stability, foreign policy and anti-terrorism. Criminal penalties and administrative sanctions can be imposed for violations of the EAR. For more information, please visit www.bis.doc.gov.
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