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August 02, 2007 

Defendant Pleads Guilty to Illegally Exporting Military-Related Source Code to China

The Justice Department announced today that Xiaodong Sheldon Meng pleaded guilty to violating the Foreign Economic Espionage Act and the Arms Export Control Act by possessing a trade secret belonging to his former employer and "knowingly and willfully" exporting ITAR-controlled source code to China.

According to the Justice Department, this is the first time that a person has been convicted for "illegal exports of military-related source code".

The defendant faces a maximum prison term of 24 months and could be subject to a fine of $500,000 for the Economic Espionage Act conviction and a maximum fine of $1,000,000 on the Arm Export Control Act conviction.

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