FBI arrests man for attempts to smuggle sensitive military ICs to China

According to the FBI, Lian Yang attempted to purchase 300 radiation-hardened, programmable semiconductor devices used in satellites and export those parts to China, violating the Arms Export Control Act.

By Suzanne Deffree, Managing editor, news -- EDN, December 7, 2010

The FBI (Federal Bureau of Investigation) has arrested a Woodinville, Wash, man who allegedly attempted to smuggle "sensitive military technology" to the People's Republic of China.

Lian Yang made an initial appearance in US District Court in Seattle Monday following his arrest on December 3.

According to the FBI, Yang attempted to purchase and export 300 radiation-hardened, programmable semiconductor devices used in satellites. Without giving further details on the technologies involved, the FBI said the parts are export restricted and require export license or approval from the US State Department authorizing the export of these items.

The FBI has alleged that Yang contemplated creating a shell company in the United States that would appear to be purchasing the parts so that he could conceal the fact the parts were to be shipped to China. After planning false purchase orders that would indicate the parts to be purchased were not restricted parts, Yang agreed to pay $620,000 to obtain the 300 parts through subterfuge, the FBI claimed.

Yang had been under surveillance for months. In July was detained by Customs and Border Protection personnel and Homeland Security Investigations when he returned from a trip to China regarding equipment in his luggage. In the fall, Yang attended a series of meetings with undercover agents posing as contacts who could obtain the restricted parts. The FBI said that on multiple occasions Yang and the participants in the meetings discussed legal restrictions on exporting these types of parts. The FBI arrested Yang when he was scheduled to meet with undercover agents to exchange cash for parts.  

Yang is charged with conspiracy to violate the Arms Export Control Act, punishable by up to five years in prison.

"Our national security and economic competitiveness rely on vigorous protection of our sensitive technologies," said US Attorney for the Western District of Washington Jenny A Durkan in a statement from the FBI. "I commend the FBI and Homeland Security Investigations for their work on this case."

The case is being investigated by the FBI with assistance from Homeland Security Investigations.