BIS alleged Ding conspired to violate the Export Administration Regulations (EAR) by knowingly and willfully attempting to export carbon fiber to China for use by the China Academy of Space Technology (CAST) without the required U.S. government authorization.
The carbon fiber materials involved are controlled by BIS for nuclear non-proliferation and national security reasons and valued at $315,000. BIS alleged that from February 2007 through at least April 2008 Ding conspired with others to export two types of this material to CAST in China, via Hong Kong and Singapore, without the required Commerce Department licenses.
Ding used his position as a manager of several Singapore-based companies that acquired items for CAST to further the conspiracy. He directed the activities of individuals and entities in the United States and Singapore to deceive U.S. suppliers and avoid detection by law enforcement, and provided the money used to obtain the controlled materials for export from the United States to China.
'Ding took these actions despite repeated warnings that an export license was required for the export of carbon fiber to China. After the material had been purchased and stored in New York as part of the scheme, Ding ultimately directed a co-conspirator by email to export some carbon fiber to Hong Kong and some to a company under Ding's control in Singapore,' BIS said in a statement.
The items were stopped by special agents of BIS's Office of Export Enforcement (OEE) before they could be exported. Ding subsequently was arrested by the BIS and Homeland Security agents when he attempted to enter the United States. Prior to settling BIS's administrative charge, Ding entered a guilty plea to criminal charges of conspiracy to violate the EAR and was sentenced to 46 months in prison.
“In addition to the criminal penalties imposed, this case should serve as a strong message that BIS will also impose severe administrative penalties on individuals who willfully attempt to harm the national security of the United States,' said Assistant Secretary of Commerce for Export Enforcement David W. Mills, in statement.
