Economic / Industrial / Corporate Espionage Case

 

Name

CHAO, Tah Wei

 Guo, Zhi Yong
Employer
 Printing Plus Graphics  

Dates of Employment

    
Employee Type
    
Job Title/Duties
    
Military Rank
    
Clearance Level
    
       
Spying For
 PRC PRC
Codename
    
Spying Dates
    
Co-conspirators
    
Methodology
 Purchased 3 thermal imaging cameras in the fall of 2007. Purchased 10 more cameras in March 2008 from FLIR Systems, Inc.

FLIR Systems repeatedly warned Chao that the cameras could not be moved outside of the United States without an export license issued by the Department of Commerce.

  
Possible Motivations, Problems
    
Finances
    
Identified/
Investigation
 Investigating the men since August 2007, when an Oregon-based company informed them of an order for three of the cameras from a new customer -- Printing Plus Graphics of San Gabriel, Calif. Chao's printing business did not have any legitimate use for thermal imaging cameras.

Product of an investigation by the newly created Export and Anti-proliferation Global Law Enforcement (EAGLE) Task Force. The counter-proliferation task force was recently created by the United States Attorney’s Office for the Central District of California in conjunction with federal law enforcement agencies to jointly investigate and combat the illegal exports of arms and sensitive technologies. The members of the EAGLE Task Force that participated in this investigation are: the United States Department of Commerce, Bureau of Industry and Security, Office of Export and Enforcement; U.S. Immigration and Customs Enforcement; the Federal Bureau of Investigation; Customs and Border Protection; the Diplomatic Security Service and the Transportation Security Administration.

Arrest Date/Location
 Saturday, 5 April 2008, Los Angeles International Airport as they were preparing to board a flight to China.
Charges
 Violating the International Emergency Economic Powers Act and Export Administration Regulations by knowingly exporting and attempting to export restricted items without a license.

Attempted to bring 10 thermal-imaging cameras to the People’s Republic of China without obtaining the necessary licenses.

The thermal imaging cameras, which have potential military use, can be used to observe things not otherwise visible to the naked eye, and they are export-controlled for national security, nuclear proliferation and regional stability reasons.
Court
 Central District of California, Los Angeles
Lawyers
 Richard Goldman David Bortman
Status
 16 March 2009: Sentencing scheduled.

17 July 08: pled guilty to three felony counts concerning 10 cameras concealed in luggage bound for China in April this year and three cameras shipped illegally to Beijing in October 2007.

 11 May 09: Sentencing scheduled.

23 February 09:  Found guilty of conspiracy and attempting to export restricted items.

       
Date/Place of Birth
 1956, PRC 1959, PRC
Citizenship
 Naturalized US citizen PRC
Residences
 Beijing, PRC Beijing, PRC
Education
    
Family
    
Other Employment
    
Additional Bio
    
       
Documents
 Zhi Yong Guo Found Guilty of Illegally Exporting Sensitive Thermal-Imaging Technology to China  (DOJ/USAO press release, 23 February 2009)

Chinese Resident Chao Tah Wei Pleads Guilty to Having Export-Controlled Thermal-Imaging Cameras Sent to China (DOJ/USAO press release, 17 July 2008)

Two Chinese residents charged with attempting to bring export-controlled thermal-imaging cameras to PRC (DOJ/USAO press release, 7 April 2008)
Quotes
  
Case Links
  

BOOKS

  

 

News:

 

Chinese National Convicted of Exporting Sensitive Technology to China

Zhi Yong Guo, 50, a resident of Beijing, was convicted of conspiracy and exporting and/or attempting to export restricted items, charges that carry a statutory maximum sentence of 40 years in prison. A federal jury in Los Angeles returned the guilty verdicts following a one-week trial.  The charges relate to 10 cameras concealed in luggage destined for China in April 2008. The export of the thermal-imaging cameras to China are controlled by the Department of Commerce for national security and regional stability reasons because of their use in a wide variety of civilian and military applications. The thermal-imaging cameras can be used to observe things not otherwise visible to the naked eye.  Previously in this case, Tah Wei Chao, 53, of, Beijing, China, pleaded guilty to three felony counts: conspiracy, and two counts of exporting and/or attempting to export restricted items.  In March 2008, Chao ordered 10 thermal-imaging cameras from FLIR Systems, Inc. for $53,000. Representatives from FLIR Systems repeatedly warned Chao that the cameras could not be moved outside of the United States without an export license issued by the Department of Commerce. Both Chao and Guo were arrested at Los Angeles International Airport in April 2008 after authorities recovered the 10 cameras that had been hidden in their suitcases, stuffed in shoes and concealed in clothing. Each of the cameras had a warning sticker stating: “This product is an export controlled item. Authorization by the U.S. Government must be obtained prior to any shipment outside of the United States.”   In addition to the 10 cameras intercepted by federal authorities in April 2008, Chao admitted that, acting at the behest of Guo, he shipped three cameras to China in October 2007. The evidence at trial showed that Guo, an engineer and a managing director of a technology development company in Bejing, directed Chao to obtain the cameras for Guo’s clients, the Chinese Special Police and the Special Armed Police.  Both Chao and Guo were charged under the International Emergency Economic Powers Act and Export Administration Regulations for their procurement and illegal export of sensitive technology in violation of export laws. . . . Guo is scheduled to be sentenced by Judge Walter on May 11.  Chao pleaded guilty before Judge Walter last summer. Chao, who faces a statutory maximum penalty of 60 years in prison, is scheduled to be sentenced on March 16.  This case is the product of an investigation by the Export and Anti-proliferation Global Law Enforcement (EAGLE) Task Force.  (Australia TO, 25 Feb 09)

 

Chinese national guilty of plot to export cameras

A Chinese national has been convicted in Los Angeles of plotting to illegally export thermal imaging cameras to China.  After a one week trial, a federal jury on Monday convicted Zhi Yong Guo of Beijing of conspiracy and attempting to export restricted items.  Guo and an accomplice, Tah Wei Chao, were arrested last year at Los Angeles International Airport as they tried to board a plane to China with 10 thermal imaging cameras in their luggage. Prosecutors say Guo directed Chao to obtain the cameras for Chinese special police forces. The cameras are not allowed to be taken outside of the country without a Department of Commerce export license.

Guo faces a maximum of 40 years in prison when he is sentenced May 11.  (AP, 23 Feb 09)

 

Chinese pleads guilty to hi-tech camera plot

A Chinese-born US citizen pleaded guilty on Thursday to charges stemming from a plot to illegally export thermal-imaging cameras out of the United States, justice officials said. Chao Tah Wei, 52, admitted three felony counts concerning 10 cameras concealed in luggage bound for China in April this year and three cameras shipped illegally to Beijing in October 2007. Chao was arrested with a Chinese national at Los Angeles International Airport earlier this year after the cameras, which have the potential for military use, were found in their luggage. The second man, Guo Zhiyong, faces a trial in August. Chao will be sentenced on October 6 and faces a maximum sentence of up to 60 years in prison. The cameras at the center of the case are export-controlled for national security reasons….(AFP, 17 Jul 08)

 

Chinese pleads guilty to hi-tech camera plot

A Chinese-born US citizen pleaded guilty on Thursday to charges stemming from a plot to illegally export thermal-imaging cameras out of the United States, justice officials said. Chao Tah Wei, 52, admitted three felony counts concerning 10 cameras concealed in luggage bound for China in April this year and three cameras shipped illegally to Beijing in October 2007......(AP, 18 Jul 08)

 

2 nabbed with sensitive cameras

Two men stopped from boarding a plane to China were charged Monday with trying to illegally export sensitive infrared cameras that authorities say are restricted because of their potential military uses. Beijing residents Zhi Yong Guo, 49, and Tah Wei Chao, 52, were named in a criminal complaint alleging they knowingly exported or attempted to export restricted items without a license, the U.S. attorney's office said......The men were arrested Saturday at Los Angeles International Airport after they tried to board a plane to China with 10 thermal imaging cameras in their luggage without the proper export licenses, the government said. The cameras, which are primarily used by law enforcement, fire departments and the military, are carefully controlled for national security reasons and are treated as munitions under the International Trafficking in Arms Regulations. They produce heat- based images invisible to the naked eye.....(AP, 8 Apr 08)

 

Two Chinese Charged Over Hi-Tech Cameras

Two Chinese men have been charged with breaching US export laws after being caught trying to take 10 thermal-imaging cameras out of the country illegally. The two men -- a Chinese national and a naturalized US citizen -- were arrested on Saturday at Los Angeles International Airport after the cameras which have potential military use were found in their luggage......(AFP, 7 Apr 08)

 

Charges Filed In Case Of Thermal-Imaging Cameras Found At LAX

Two men were charged Monday in Los Angeles with trying to take 10 thermal-imaging cameras to China without getting proper licenses, federal prosecutors announced. Tah Wei Chao, a 52-year-old naturalized U.S. citizen, and Zhi Young Guo, 49, a Chinese national, were arrested early Saturday at Los Angeles International Airport.......(KNBC-TV, 7 Apr 08)

 

Men Accused of Illegal Technology Export Attempt

Two Chinese residents, arrested at Los Angeles International Airport over the weekend, face charges for allegedly attempting to export sensitive thermal imaging technology to China. Authorities arrested Zhi Yong Guo and Tah Wei Chao as they were about to board an Air China flight to Beijing early Saturday morning, after investigators found 10 of the cameras in their luggage......The men worked for a company, Printing Plus Graphics, in San Gabriel, Calif. After warning Chao several times that the cameras could not be moved outside the U.S. without an export license, a representative from the FLIR Systems corporation — which manufactures the devices — alerted Commerce Department officials last fall about several "red flags." One noted that "A print shop is not what I would consider an ordinary customer," the company representative told investigators in a September 2007 e-mail.......(ABC News, 7 Apr 08)

 

2 charged in LAX infrared cameras case

Two men stopped from boarding a plane to China were charged Monday with trying to illegally export sensitive infrared cameras that authorities say are restricted because of their potential military uses....(AP, 7 Apr 08)

 

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