Two Plead Guilty in Scheme to Export Sensitive Electronics to China

Two Plead Guilty in Scheme to Export Sensitive Electronics to China -- Technology had military radar and communications applications --

MILWAUKEE, WI –S Steven M. Biskupic, United States Attorney for the Eastern District of Wisconsin, today announced that two Chinese citizens pleaded guilty Monday to criminal charges in connection with a conspiracy to illegally export restricted electronic components with potential uses in a wide variety of military radar and communications applications to the People’s Republic of China (PRC).

Jian Guo Qu, (dob 9/30/59) a male citizen of the PRC and owner of the Beijing Rich Linscience Electronic Company in China, pled guilty in federal district court in Green Bay to one count of violating Title 18 U.S.C. Section 371 -- conspiracy to illegally export dual-use semi-conductors and other electronic components from the United States to China without the proper export licenses from the U.S. Department of Commerce. Qu is scheduled to be sentenced July 25, 2005 and could face up to four years in prison.

Ruo Ling Wang, (dob 5/14/64), the wife of Qu, and a citizen of the PRC employed at the Beijing Rich Linscience Electronic Company in China, also pled guilty in federal district court in Green Bay to one count of violating Title 50 U.S.C. Section 1705 (b) in relation to falsifying and undervaluing a shipment of illegally exported electronics valued at $11,000 from the United States to China in an attempt to avoid scrutiny or inspection.

Wang was sentenced to time served (six and a half months) and a $1,500 fine.

Qu and Wang were among four defendants arrested on September 30, 2004 in Milwaukee and Manitowoc by a task force that included agents from the U.S. Department of Commerce, Office of Export Enforcement, the U.S. Department of Homeland Security, U.S. Immigration and Customs Enforcement (ICE), the Federal Bureau of Investigation (FBI), and the Internal Revenue Service (IRS), Criminal Investigation Division. The Manitowoc Police Department also provided assistance.

The other two defendants arrested last September were Ning Wen, (dob 4/12/49) a male U.S. citizen residing at 402 Wild Oak Drive in Manitowoc, and Hailin Lin, (dob 4/28/49), the wife of Wen and also a U.S. citizen residing at 402 Wild Oak Drive in Manitowoc. Trial for Wen and Lin is scheduled for September 14, 2005 in federal court in Green Bay.

A criminal complaint filed against the four defendants in September 2004 alleged that, since at least 2001, Wen and Lin used a business called “Wen Enterprises,” which they operated from their home in Manitowoc, to ship restricted parts to Qu and Wang at Beijing Rich Linscience Electronic Company in China.

The complaint alleged that for most of these transactions, Lin obtained the restricted technology from a U.S. manufacturer or supplier based upon a request from Wang or Qu; falsified shipping documents by concealing the true nature of the shipments and stating that a license was not required for the shipments at the direction of Qu; and then shipped the product to Wang and/or Qu in the PRC, without receiving, or even applying for, the requisite export license from the U.S. Department of Commerce.

The complaint also alleged that the China National Packaging Base Construction Company or an individual in Hong Kong wire transferred money to a Wisconsin bank account of Wen Enterprises to pay for the shipments. The complaint further alleged that Wen was once a Chinese citizen employed at the Chinese Consulates in San Francisco and Los Angeles. The complaint also alleged that Wen “was recruited and worked for the FBI as an informant” during the 1990s and during some of the time period of the illegal export scheme.

In addition to being charged with conspiring to violate the International Emergency Economic Powers Act and Export Administration Regulations, the defendants were charged with money laundering. Wen and Lin each face up to 25 years in prison and substantial fines if convicted of these charges at trial.

The lead prosecutors in the case are Assistant U.S. Attorney Erica N. O’Neil and Assistant U.S. Attorney Michelle Jacobs.

U. S. Bureau of Industry and Security For Immediate Release: May 5, 2005 Contact - BIS Public Affairs 202-482-2721