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.
On February 29, 2016, Paul Skiscim, President of Aerospec, Inc., was arrested on federal charges of supplying defective airplane parts to the federal government for use in its aircraft, including military aircraft.
On January 21, 2016, Warga was sentenced by U.S. District Judge Michael P. Shea in Hartford to three years of probation and was ordered to pay a $10,000.00 fine for supplying customers with falsely remarked microprocessor chips, many of which were used in the assembly of U.S. military and commercial helicopters. T
Since 1990 the United States has maintained an arms embargo against the People's Republic of China (PRC) that prohibits the export, re-export, or transfer of any defense article to the PRC. In its effort to bypass US Federal Regulations, the Chinese Government enlisted the assistance of “technology spies” in an attempt to obtain advanced US fighter aircraft engines and a UAV (unmanned aerial vehicle), according to recently unsealed Federal Court documents.
Kristal Snider & Mary Dunham, ERAI
On April 24, 2012 federal agents searched the office of Epic International Electronics, Inc., a home based business owned and operated by Peter and Lisa Picone. At the time the U.S. Department of Defense Criminal Investigative Services (DCIS) would only confirm the search was the result of an "active investigation". Fourteen months later, on June 25, 2013, Peter Picone was formally charged in an eightcount indictment with conspiring to traffic in counterfeit goods, conspiring to traffic in counterfeit military goods, trafficking in counterfeit goods, conspiring to commit wire fraud, wire fraud and conspiring to commit money laundering.