Virginia Physicist Pleads Guilty to Illegal Exports to China and Violating FCPA
Mr. Shu Quan-Sheng, president of Newport News, Virgina-based AMAC International, today pleaded guilty in federal court in Norfolk, Virginia to two counts of violating the Arms Export Control Act (AECA) and one count of attempting to bribe Chinese government officials, in violation of the Foreign Corrupt Practices Act (FCPA).
Count one of the criminal information alleged that Shu violated the AECA by willfully exporting a defense service from the United States to the PRC without first obtaining the required export license or written approval from the State Department. Shu is alleged to have provided the PRC with assistance in the design and development of a cryogenic fueling system for space launch vehicles to be used at the heavy payload launch facility located in the southern Chinese island province of Hainan.
Count two alleged that Shu violated the AECA by willfully exporting a defense article to the PRC without first obtaining the required export license or written approval from the State Department. Shu is alleged to have illegally exported to the PRC controlled military technical data contained in a document entitled "Commercial Information, Technical Proposal and Budgetary Officer -Design, Supply, Engineering, Fabrication, Testing & Commissioning of 100m3 Liquid Hydrogen Tank and Various Special Cryogenic Pumps, Valves, Filters and Instruments."
Count three alleged that Shu offered to pay money to foreign officials of the PRC’s 101 Institute to obtain a contract for a French company he represented to develop of a liquid hydrogen tank system. Shu is alleged to have received more than $386,000 in commissions for securing the contract and has agreed to forfeit those funds.
Shu is schedule to be sentenced on April 6, 2009. Shu faces a possible maximum sentence of 10 years in prison and a fine of $1,000,000 for each violation of the Arms Export Control Act, and a possible maximum sentence of five years in prison and a fine of $250,000 or twice the gross gain for violating the Foreign Corrupt Practices Act.