Cupertino Export Broker Sentenced to Two Years for Illegally Exporting National Security-Sensitive Technology to China

U.S. Department of Justice, Dec 26, 2007

Defendant Brokered Illegal Sale of Night Vision Technology

SAN JOSE– United States Attorney Scott N. Schools announced that Philip Cheng was sentenced today to two years in prison and ordered to pay a $50,000 fine for his role in brokering the illegal export of a night vision camera and its accompanying technology to China in violation of federal laws and regulations. This sentence is the result of a joint investigation by the Department of Homeland Security’s Immigration and Customs Enforcement (ICE), the Federal Bureau of Investigation (FBI), the Department of Commerce’s Office of Export Enforcement, and the Internal Revenue Service (IRS) Criminal Investigation Division.

Mr. Cheng pleaded guilty on October 31, 2006 to brokering the illegal export of Panther-series infrared camera, a device which makes use of “night vision” technology, in violation of 22 U.S.C. § 2778(b)(1)(A)(ii)(III) and 22 C.F.R. §§ 129.3, 129.6. Mr. Cheng failed to obtain required authorization of the United States Department of State prior to the export of the camera. The technology used in the device was controlled for national security reasons by the United States Department of State.

Mr. Cheng, 60, of Cupertino, was indicted by a federal grand jury on June 3, 2004. He was charged with conspiracy to violate the federal Arms Export Control Act and the International Traffic in Arms regulations, brokering the illegal export of defense articles and services, and three counts of money laundering.

Mr. Cheng’s guilty plea followed a trial in February and March 2006 which ended in a hung jury. Following the mistrial, Mr. Cheng agreed to resolve the case through his guilty plea to the willful illegal brokering of a night vision camera to China.

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