Restricted Electronics to China

On March 23, 2014, General Technology Systems Integration was sentenced in the Central District of California to 5 years probation and a special assessment of $400. Previously, on October 11, 2010, York Yuan Chang, also known as David Zhang, and his wife, Leping Huang, were arrested on charges of conspiring to export restricted electronics technology to the People’s Republic of China (PRC) without a license and making false statements. According to the October 9, 2010 criminal complaint, the defendants are the owners of General Technology Systems Integration, Inc., (GTSI), a California company involved in the export of technology to the PRC. GTSI allegedly entered into contracts with the 24th Research Institute of the China Electronics Technology Corporation Group in China to design and transfer to the PRC technology for the development of two-types of high-performance analog-to-digital converters (ADCs). The defendants allegedly hired two engineers to design the technology and provide training to individuals in the PRC. Twice in 2009, U.S. Customs and Border Protection officials stopped the engineers upon their return to the United States and allegedly found computer files and documents indicating illegal technology transfer involving GTSI and China. According to the complaint, Chang and Huang allegedly sought to cover up the project after authorities contacted the engineers. The ADCs that the defendants allegedly attempted to export to the PRC are subject to export controls for national security and anti-terrorism reasons. This investigation was conducted by the FBI, BIS, ICE, IRS and DCIS.