A Chinese national, who was residing in Oakland, Calif., pleaded guilty Sept. 3 to conspiracy to violate the Arms Export Control Act and to Smuggle Goods from the United States.
This guilty plea was announced by U.S. Attorney John Walsh, District of Colorado, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar C. Kibble.
Philip Chaohui He, aka Philip Hope, is scheduled to be sentenced by Senior U.S. District Court Judge Wiley Y. Daniel Dec. 18. He is currently in federal custody.
According to court documents, including the stipulated facts contained in the plea agreement, He attempted to illegally export to China radiation-hardened computer memory circuits used in satellite communications with a value of almost $550,000. He, the only employee of Oakland, California-based Sierra Electronic Instruments (SEI), purchased 312 radiation-hardened circuits from a Colorado manufacturer. The circuits purchased by He are categorized as defense articles within the International Trafficking in Arms Regulations (ITAR). Lawfully exporting defense articles requires licensing from the U.S. State Department’s Directorate of Defense Trade Controls.
Oh joy! The Company, Aeroflex claimed some credit on this “busting” espionage.
For Aeroflex in Colorado Springs it was an order that just didn’t seem right. The company provides high-tech products for aerospace industry, defense industry and others. Aeroflex became highly suspicious of an order for nearly $500,000 worth of radiation-hardened integrated circuits.
Agents from the Department of Homeland Security were notified. Their investigation uncovered an international smuggling ring. It found almost $500,000 was wired from a bank in the People’s Republic of China to the bank account of Phillip Chaohui in Oakland, Calif. The money was then used to purchase the products from Aeroflex by claiming they would not leave the country.
If you really want to dig fishy stories, the company in Colorado, Aeroflex, has manufacturing facility in China.
And Aeroflex just settled ($8 Million) with US Justice Department in August 2013, for ITAR violation, for what? YEARS of SAME export violations to China.
HMMM??? So, US company does it, Settle.
Some immigrant does it. SPY?!
I do have to say, Mr. He is quite stupid. As a Chinese immigrant, he should have known that he can’t get away with Sh*t pulled by the “too big to prosecute” types of Americans. (American dream doesn’t include letting you, a Chinese immigrant, get away with stuff RESERVED ONLY for the finest vintaged Americanness. You can just forget about it. No way in Hell. Never ever.)
When it comes to the likes of Mr. He, it’s the US policy that “too Chinese NOT to Prosecute.”
And what’s worse, Mr. He actually LOST money in the deal: he was paid about $490K from the “Chinese co-conspirators”, but then he had to pay Aeroflex about $550K to just to order the parts!! Mr. He actually lost $60K on the deal!!
You know, I really smell something fishy about this whole deal, which simply makes no sense to me.
It frankly feels like a set up to start with. Mr. He’s mistakes were just too stupid to be real, including the silly cliched meet at the docks bit.
And “rad hard memory chips”??! Come on.