N1508-11
Drone, Missile and Stealth Technology to China
On January 9, 2015, Hui Sheng Shen, a.k.a. “Charlie,” was sentenced in the District of New Jersey to 49 months in prison and $200 special assessment. On January 6, 2015, Huan Ling Chang, a.k.a. “Alice” was sentenced to time served and $200 special assessment. Previously, on September 22, 2014, Shen and Chang, both Taiwanese nationals, each pleaded guilty to one count of conspiracy to violate the Arms Export Control Act and one count of conspiracy to import illegal drugs. On April 25, 2012, Shen and Chang were charged separately by amended criminal complaints with conspiracy to violate the Arms Export Control Act. The defendants were arrested on February 25, 2012 in New York in connection with a complaint in New Jersey charging them with conspiring to import and importing crystal methamphetamine from Taiwan to the United States. According to the amended complaint, during negotiations with undercover FBI agents over the meth deal, the defendants asked FBI undercover agents if they could obtain an E-2 Hawkeye reconnaissance aircraft for a customer in China. In subsequent conversations, Shen and Chang allegedly indicated they were also interested in stealth technology for the F-22 fighter jet, as well missile engine technology, and various Unmanned Aerial Vehicles (UAV), including the RQ-11b Raven, a small, hand-launched UAV used by the U.S. Armed Forces. Shen and Chang allegedly stated that their clients were connected to the Chinese government and its intelligence service. According to the complaint, they sent undercover agents a code book to facilitate communications relating to the proposed arms exports and opened a bank account in Hong Kong to receive and disburse funds related to the transactions. On a visit to New York in February 2012, the defendants allegedly examined a Raven RQ-11b UAV and manuals relating to the RQ- 4 Global Hawk UAV (provided by undercover FBI agents) that they allegedly intended to export to China. Shen and Chang were arrested shortly thereafter. The export investigation was conducted by the FBI, while ICE was responsible for a parallel investigation into the import of counterfeit goods from China involving other defendants.