Two men have been arrested and accused of scheming to smuggle military encryption technology to China, the US Customs Service said on Wednesday.
The technology, two devices known as KIV-7HS units, are used to encode classified government communications.
"The technology that these individuals were attempting to export to China is among the most sensitive items on the US munitions list," said Allan Doody, the Customs Service special agent in charge. Doody said sale of the technology must be approved by the National Security Agency.
Customs agents have arrested Eugene Hsu and Taiwanese-born David Yang. Carlson Ho, also charged with attempting to smuggle the technology, is in Singapore and has not been arrested. Ho is affiliated with the Singapore-based Wei Soon Loong Private Ltd, which intended to buy the technology, according to a federal affidavit.
The maximum sentence for smuggling sensitive technology is 10 years in prison and a US$1 million fine. Agents discovered the alleged scheme when Hsu contacted representatives of the company Mykotronx, a private defense contractor based in Maryland, seeking a price quote.
Yang confirmed on Aug. 24 to the customs undercover agent that the units would be shipped from Los Angeles through Taipei to Singapore, where Ho then was to forward the units to China, the agency said.
RSS