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Chinese Chip Distributor Pleads Guilty to Scheme to Steal and Illegally Export Military-Grade Semiconductors

Kristal Snider
04/18/2016

On December 10, 2015 three Chinese nationals (DAOFU ZHANG, 40; JIANG GUANGHOU YAN, also known as “Ben,” 33; and XIANFENG ZUO, 37) were arrested on federal criminal complaints in connection with a scheme to obtain and illegally export sophisticated semiconductors stolen from the U.S. Military. 
 
ZHANG, YAN, and ZUO operated businesses in China and elsewhere that engage in the purchase and sale of electronic components, including integrated circuits. Federal law enforcement agents began investigating YAN and a Chinese company known as HK Potential in 2012 for trafficking in counterfeit semiconductors.  In October 2014 and in March 2015, YAN sold a total of 45 counterfeit Intel microprocessors to an undercover agent who had advised YAN that the components would be used on a U.S. Navy contract involving submarines.
 

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