Stavridis: Cooperation Key in Tackling Piracy Threat

By Donna Miles

American Forces Press Service

WASHINGTON, Sept. 27, 2012 – Hoping to build on successes over the past year in combating piracy, the top U.S. commander in Europe and other key stakeholders in the fight gathered in London this week to help chart the way forward.

Navy Adm. James G. Stavridis, who also serves as the NATO commander, joined leaders from the NATO Maritime Component Command, European Union, shipping security officials and other experts to explore ways to improve their cooperation in tackling this transnational threat.

“We face a significant global problem that has caused extensive and expensive disruptions to the global maritime grid,” Stavridis noted in his blog post on the U.S. European Command website. “In particular, off the Horn of Africa in the northern Indian Ocean, we’ve seen hundreds of pirate attacks and dozens of successful hijackings over the past years.”

He estimated costs to the international community as high as $5 billion to $10 billion per year, noting that hundreds of mariners have been held hostage by pirates for ransom.

“Although the success rate and the numbers of attacks are down this year, we still have seven ships and more than 100 hostages held by Somali pirates on the largely ungoverned east coast of Africa,” the admiral said.

NATO, the European Union and a variety of other nations, including Russia, China, Japan, South Korea, India, Iran and the Gulf States, have come together to help address this problem, he noted. With a fleet that averages 20 to 30 ships, they patrol waters stretching from the Red Sea, past the Gulf of Aden and down into the northern Indian Ocean.

Shared concern about the problem led last week to the first bilateral counter-piracy exercise between the United States and China. Crew from the guided-missile destroyer USS Winston S. Churchill and other Navy assets joined Chinese People’s Liberation Army sea elements, including the frigate Yi Yang, for training near the Horn of Africa.

The sailors’ focus was on bilateral interoperability in detecting, boarding and searching suspected vessels, as well as the ability of both Chinese and American naval assets to respond to pirated vessels, a USS Winston S. Churchill spokesman reported.

Meanwhile, the shipping industry has implemented best business practices: traveling in convoys, hardening their defenses such as stringing concertina wire along their decks, posting lookouts and hiring private teams, Stavridis reported. They appear to be paying off, he said, recognizing that although many ships with embarked private security teams have been attacked, none has been successfully hijacked.

Participants at this week’s conference, co-hosted by the U.N.-sponsored International Maritime Organization, discussed ways to increase cooperation between shippers and protecting forces and ways to move ashore to pre-empt pirate strikes and disrupt pirates’ bases and logistics systems.

Another focus, Stavridis said, was on building capacity within local coast guards and to applying a comprehensive approach to make piracy less attractive as an occupation.

Former Employee of New Jersey Defense Contractor Convicted of Exporting Sensitive Military Technology to China

Stole Trade Secrets from Morris County Company

NEWARK—A federal jury today convicted a former employee of a New Jersey-based defense contractor of exporting sensitive U.S. military technology to the People’s Republic of China (PRC), stealing trade secrets, and lying to federal agents, U.S. Attorney Paul J. Fishman announced.

Sixing Liu, a/k/a, “Steve Liu,” 49, a PRC citizen who had recently lived in Flanders, New Jersey, and Deerfield, Illinois, was taken into custody following the verdict, based on risk of flight considerations. Sentencing before U.S. District Judge Stanley R. Chesler is scheduled for January 7, 2013.

“The jury found that in order to promote himself, Liu took highly sensitive defense information and trade secrets to China, violating the rules of his company and the laws of this country, and then lied about it upon his return to the United States,” U.S. Attorney Fishman said. “We will not tolerate the exploitation of this country’s opportunities through the theft of our secrets.”

“This specific investigation is troubling on many levels,” FBI Special Agent in Charge Michael B. Ward said. “Mr. Liu helped develop technology critical to our military, then took a computer with that information on an unauthorized trip to China to present at a conference sponsored by the Chinese government. The United States spends billions of dollars each year on research and development, and this ‘intellectual capital’ is very attractive to others. If they are able to acquire this research, they can save billions and quickly develop their own products to compete against the United States, be it in the world economic market or on the battlefield.”

“Exporting military weapons and technical data and the theft of sensitive technology in violation of the Arms Export Control Act are serious crimes with global consequences,” Andrew McLees, Special Agent in Charge of Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) in Newark, said. “Illegal foreign procurement networks continue to threaten our safety and this conviction reinforces that HSI has no tolerance for those who try to undermine our nation’s safety and security.”

“This arrest demonstrates the determination of Customs and Border Protection’s frontline officers, who work closely with our law enforcement partners to safeguard the American public from potential threats,” Robert E. Perez, Director Field Operations, for CBP New York, said.

The jury convicted Liu of nine of the 11 counts in the second superseding indictment with which he was charged, including six counts of violating the Arms Export Control Act and the International Traffic in Arms Regulations, one count of possessing stolen trade secrets in violation of the Economic Espionage Act of 1996, one count of transporting stolen property in interstate commerce, and one count of lying to federal agents. The jury acquitted Liu on two counts of lying to federal agents.

According to documents filed in the case and evidence presented at trial:

In 2010, Liu stole thousands of electronic files from his employer, L-3 Communications, Space and Navigation Division, located in Budd Lake, New Jersey. The stolen files detailed the performance and design of guidance systems for missiles, rockets, target locators, and unmanned aerial vehicles. Liu stole the files to position and prepare himself for future employment in the PRC. As part of that plan, Liu delivered presentations about the technology at several PRC universities, the Chinese Academy of Sciences, and conferences organized by PRC government entities. However, Liu was not charged with any crimes related to those presentations.

On November 12, 2010, Liu boarded a flight from Newark Liberty International Airport to the PRC. Upon his return to the United States on November 29, 2010, agents found Liu in possession of a non-work-issued computer found to contain the stolen material. The following day, Liu lied to agents of the Department of Homeland Security about the extent of his work on U.S. defense technology, which the jury found to be a criminal false statement.

The U.S. Department of State’s Directorate of Defense Trade Controls later verified that several of the stolen files on Liu’s computer contained export-controlled technical data that relates to defense items listed on the United States Munitions List (USML). Under federal regulations, items and data covered by the USML may not be exported without a license, which Liu did not obtain. The regulations also provide that it is the policy of the United States to deny licenses to export items and data covered by the USML to countries with which the United States maintains an arms embargo, including the PRC.

The jury heard testimony that Liu’s company trained him about the United States’ export control laws and told him that most of the company’s products were covered by those laws.

After the verdict, Judge Chesler ordered Liu taken into custody, citing the penalties Liu faces, his ties to the PRC, and the lack of an extradition treaty with the PRC, among other reasons.

Liu faces the following maximum penalties, per count:

■Export violations—20 years in prison, $1 million fine

■Stolen trade secrets violation—10 years in prison, $250,000 fine

■Interstate transportation of stolen property—10 years’ in prison, $250,000 fine

■False statement—five years in prison, $250,000 fine

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ward; special agents of ICE-HSI, under the direction of Special Agent in Charge McLees; and officers of CBP, under Director of Field Operations Perez, for the investigation leading to today’s verdict.

The government is represented by Assistant U.S. Attorney L. Judson Welle of the United States Attorney’s Office’s National Security Unit and Assistant U.S. Attorney Gurbir S. Grewal of the United States Attorney’s Office’s Economic Crimes Unit, both in Newark. The prosecution received valuable support from attorneys of the U.S. Department of Justice’s National Security Division, Counterespionage Section.

Eco-Terrorist Sentenced

Help Us Find Remaining Operation Backfire Fugitives

After he was indicted in 2006 for firebombing a University of Washington research facility, Justin Solondz became an international fugitive, beginning an odyssey that would land him in a Chinese jail—and finally before a federal judge in Seattle, who sentenced him last week to seven years in prison.

Solondz, 32, was a member of an eco-terrorist cell known as “The Family,” which committed an estimated $48 million worth of arson and vandalism across the Pacific Northwest and western U.S. between 1996 and 2001 under the names of the Animal Liberation Front and the Earth Liberation Front.

Three members of The Family are still on the run, and there is a reward for information leading to their arrest.

The cell’s most notorious crime was the 1998 arson of a Vail, Colorado ski resort that caused $26 million in damages and drew international attention to eco-terrorists—those who break the law in misguided and malicious attempts to protect the environment and animal rights. We took the lead in the Vail investigation, working closely with our local, state, and federal law enforcement counterparts. In 2004, multiple eco-terror investigations were condensed into Operation Backfire.

We need your help to bring the three remaining fugitives from The Family to justice. A reward of up to $50,000 each is being offered for information leading to the arrest of Joseph Dibee, Josephine Overaker, and Rebecca Rubin, all believed to be living abroad.

Here is what we know about the trio:

■Dibee was indicted in 2006 on charges of arson, conspiracy, and animal enterprise terrorism. He is believed to be living in Syria with family members.

■Overaker was indicted in 2004 and 2006 for her involvement with the 1998 Vail arson and other crimes. She is believed to have spent time in Germany and may have settled in Spain. She speaks fluent Spanish.

■Rubin was indicted in 2006 for the Vail arson and other acts of domestic terrorism. A Canadian citizen, she has strong family ties to Canada and may be living there.

Investigators identified Solondz as a member of The Family in the spring of 2006, said Special Agent Ted Halla in our Seattle office. “He was traveling overseas, and we started tracking him through Europe to Russia, Mongolia, and then China. He realized we were after him,” Halla said. “He liquidated his bank accounts and tried to hide his tracks online. By the summer of 2006, he disappeared in China.”

Working through our legal attaché office in Beijing, we learned that Solondz had been arrested in China for manufacturing drugs and sentenced to prison. He served nearly three years before the Chinese released him to our custody.

As part of his plea, Solondz admitted building the firebomb that was planted in the office of a University of Washington horticultural researcher. He and The Family mistakenly believed the researcher was genetically altering trees. The fire ruined the researcher’s work along with the work of dozens of other students and researchers.

“The Solondz case has been a long process,” Halla said. “When you are after someone for that many years, it’s a big relief to see the individual finally brought to justice.”

Massachusetts Man Pleads Guilty to Conspiracy to Export Military Antennae to Singapore and Hong Kong

WASHINGTON – Rudolf L. Cheung, 57, a resident of Massachusetts, pleaded guilty today in federal court in the District of Columbia to conspiracy to violate the Arms Export Control Act in connection with the unlawful export of 55 military antennae from the United States to Singapore and Hong Kong.

The plea was announced by Lisa Monaco, Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; John Morton, Director of the Department of Homeland Security’s U.S. Immigration and Customs Enforcement (ICE); Mark Giuliano, Executive Assistant Director of the FBI’s National Security Branch; and Eric L. Hirschhorn, Under Secretary for Industry and Security at the Commerce Department.

Cheung serves as the head of the Research & Development Department at a private company that manufactures antennae. Over the past 17 years, he has designed or supervised the development of a full library of antennae made by the firm, many of which have military applications and are used by defense contractors.   Some of Cheung’s inventions are used in the U.S. space program.  

According to court documents filed in the case, in June 2006, a company in Singapore sent an inquiry to the firm that employs Cheung seeking a quotation for two types of antennae that are classified by the U.S. government as defense articles and may not be exported without a license or approval from the State Department. After receiving the query, the export compliance officer at Cheung’s firm advised the firm in Singapore that neither antenna could be exported unless they filled out a U.S. government form attesting that the goods would not be transferred.   The firm in Singapore refused, and the order was stopped.   

After learning that the export compliance officer at his company had blocked the export, Cheung admitted that he discussed with an individual outside his company (co-conspirator C) a plan to bypass the export controls at his company and arrange for the antennae to be exported to Singapore through co-conspirator C. Under the plan, co-conspirator C, who operated his own company in Massachusetts, would purchase these goods from Cheung’s company and then export them on his own to the firm in Singapore, with Cheung’s knowledge.

Subsequently, co-conspirator C contacted the firm in Singapore and offered to broker the deal with Cheung’s company. Co-conspirator C then negotiated the purchase of the antennae with employees of the firm in Singapore and, later, with another company called Corezing International in Singapore. Between July and September 2007, co-conspirator C purchased 55 military antennae from Cheung’s company, which he then exported to Corezing addresses in both Singapore and Hong Kong.  

According to court documents, Cheung was aware that the purchases by Co-conspirator C were intended for export from the United States and that these exports had previously been blocked by his export compliance manager. Yet Cheung took no action to stop the sale of these antennae from his company or their subsequent export from the United States, even though he knew a license was required for such exports. Cheung neither sought nor obtained any license from the State Department to export these items outside the United States.

At sentencing, Cheung faces a maximum potential sentence of five years in prison, a fine of $250,000 and a 3-year term of supervised release.

Corezing, based in Singapore, has been charged in a separate indictment in the District of Columbia in connection with the export of these particular military antennae to Singapore and Hong Kong. Corezing and its principals have also been charged, and the United States is seeking their extradition, in connection with the export of 6,000 radio frequency modules from the United States to Iran via Singapore, some of which were later found in improvised explosive devices in Iraq.

This investigation was jointly conducted by ICE agents in Boston and Los Angeles; FBI agents in Minneapolis; and Department of Commerce, Bureau of Industry and Security agents in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection and the State Department’s Directorate of Defense Trade Controls.

The prosecution is being handled by Assistant U.S. Attorneys Anthony Asuncion and John W. Borchert of the U.S. Attorney’s Office for the District of Columbia; and Trial Attorneys Jonathan C. Poling and Richard S. Scott of the Counterespionage Section of the Justice Department’s National Security Division.

Troops Get Supplies Despite Pakistan’s Border Closing

By Jim Garamone
American Forces Press Service

WASHINGTON, Dec. 8, 2011 – U.S. and NATO forces in Afghanistan will receive the supplies they need to perform their missions regardless of Pakistan’s closure of its border with Afghanistan, Pentagon officials said today.

Pentagon Press Secretary George Little and Navy Capt. John Kirby hope that Pakistan will reopen the border between the countries and return its troops to the border coordination centers. The centers are designed to avoid incidents like that of Nov. 26 when NATO ordnance accidently killed 24 Pakistani soldiers.

The two spoke during a Pentagon news conference.

The war effort in Afghanistan continues unabated by the closures, Little said. “We’re well-aware of the closures and potential impacts,” he said. “To date, there’s been no significant impact to our ability to provide for the war effort. That being said, we do believe that these are important supply routes, and we hope that in the near future they can be reopened.”

Good logistics systems are among the crucial factors for success in any military operation, and redundancy is key to logistics. About 30 percent of the supplies to NATO and U.S. troops in Afghanistan travel through Pakistan. Other routes are taking up the slack.

NATO International Security Assistance Force commander Marine Corps Gen. John R. Allen “is comfortable” with his supply situation now, Kirby said. “So there have been no major muscle movements to alter the flow of logistics,” he said.

Kirby also discussed China and reports that Chinese leaders have ordered their navy to be operationally ready. This does not mean that China is girding for war. “Nobody is looking for that kind of conflict with China,” he said.

Navies exist to protect the national security interests of their countries, Kirby said.

“All navies have to be ready for operation; our navy is ready for operations,” he said. “We certainly wouldn’t begrudge the Chinese government from wanting to ensure that their navy was fit for sea.”

U.S. military relations with China are improving. Michele Flournoy, undersecretary of defense for policy, has just left China after holding defense consultative talks with military and governmental leaders there.

“This is a country that we have been trying very hard to develop a good, constructive military relationship with,” Kirby said. “We’re taking steps in the right direction, and it is moving in the right direction.”

The peaceful rise of China is not only good for the region, it’s good for the world, Kirby said.

“This is a country that we want to have a good, constructive, productive relationship with,” he said.

Five Individuals Indicted in a Fraud Conspiracy Involving Exports to Iran of U.S. Components Later Found in Bombs in Iraq

Indictment Also Alleges Fraud Conspiracy Involving Illegal Exports of Military Antennas to Singapore and Hong Kong

WASHINGTON—Five individuals and four of their companies have been indicted as part of a conspiracy to defraud the United States that allegedly caused thousands of radio frequency modules to be illegally exported from the United States to Iran, at least 16 of which were later found in unexploded improvised explosive devices (IEDs) in Iraq. Some of the defendants are also charged in a fraud conspiracy involving exports of military antennas to Singapore and Hong Kong.

Yesterday, authorities in Singapore arrested Wong Yuh Lan (Wong), Lim Yong Nam (Nam), Lim Kow Seng (Seng), and Hia Soo Gan Benson (Hia), all citizens of Singapore, in connection with a U.S. request for extradition. The United States is seeking their extradition to stand trial in the District of Columbia. The remaining individual defendant, Hossein Larijani, is a citizen and resident of Iran who remains at large.

The arrests and the indictment were announced by Lisa Monaco, Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; John Morton, Director of the Department of Homeland Security’s U.S. Immigration and Customs Enforcement (ICE); Mark Giuliano, Executive Assistant Director of the FBI’s National Security Branch; Eric L. Hirschhorn, Under Secretary of Commerce; and David Adelman, U.S. Ambassador to Singapore.

“Today’s charges allege that the defendants conspired to defraud the United States and defeat our export controls by sending U.S.-origin components to Iran rather than to their stated final destination of Singapore. Ultimately, several of these components were found in unexploded improvised explosive devices in Iraq,” said Assistant Attorney General Monaco. “This case underscores the continuing threat posed by Iranian procurement networks seeking to obtain U.S. technology through fraud and the importance of safeguarding that technology. I applaud the many agents, analysts and prosecutors who worked on this extensive investigation.”

“These defendants misled U.S. companies in buying parts that they shipped to Iran and that ended up in IEDs on the battlefield in Iraq,” said U.S. Attorney Machen. “This prosecution demonstrates why the U.S. Attorney’s Office takes cases involving misrepresentations regarding the intended use of sensitive technology so seriously. We hope for a swift response from Singapore to our request for extradition.”

“One of Homeland Security Investigations’ (HSI) top enforcement priorities is preventing sensitive technology from falling into the hands of those who might seek to harm American personnel or interests—whether at home or abroad,” said ICE Director Morton. “This international investigation conducted by ICE’s HSI and our law enforcement partners demonstrates the importance of preventing U.S. technology from falling into the wrong hands, where it could potentially be used to kill or injure our military members and our allies. Our agency will continue to work closely through our attachés to identify these criminals, dismantle their networks, and ensure they are fully prosecuted.”

“This multi-year investigation highlights that acquiring property by deceit has ramifications that resonate beyond the bottom line and affects our national security and the safety of Americans worldwide,” said FBI Executive Assistant Director Giuliano. “We continue to work side-by-side with our many partners in a coordinated effort to bring justice to those who have sought to harm Americans. We consider this investigation as the model of how we work cases—jointly with the Department of Homeland Security/Immigration and Customs Enforcement and the Department of Commerce/Office of Export Enforcement and collectively with our foreign partners to address the threats posed by Iranian procurement networks to the national security interests of the United States both here and abroad.”

“These cases are the product of vigorous, cooperative law enforcement focused on denying to Iran items that endanger our coalition forces on the battlefield in Iraq,” said Under Secretary of Commerce Hirschhorn. “We will continue aggressively to go after such perpetrators—no matter where they operate—to guard against these types of threats.”

U.S. Ambassador to Singapore, David Adelman, praised the cooperation within the U.S. executive branch agencies and with the Singaporean authorities. “Twenty-first century law enforcement is most effective when countries work collaboratively as evidenced by this strong, cooperative effort between the U.S. and Singapore. Congratulations to all the officials in both our countries who made this happen,” he said.

The Charges

The indictment, which was returned in the District of Columbia on Sept. 15, 2010, and unsealed today, includes charges of conspiracy to defraud the United States, smuggling, illegal export of goods from the United States to Iran, illegal export of defense articles from the United States, false statements and obstruction of justice.

The charged defendants are Iranian national Larijani, 47, and his companies Paya Electronics Complex, based in Iran, and Opto Electronics Pte, Ltd., based in Singapore. Also charged is Wong, 39, an agent of Opto Electronics who was allegedly supervised by Larijani from Iran. The indictment also charges NEL Electronics Pte. Ltd., a company in Singapore, along with NEL’s owner and director, Nam, 37. Finally, the indictment charges Corezing International Pte. Ltd., a company in Singapore that maintained offices in China, as well as Seng, 42, an agent of Corezing, and Hia, 44, a manager, director and agent of Corezing.

Wong, Nam, Seng and Hia allegedly conspired to defraud the United States by impeding U.S. export controls relating to the shipment of 6,000 radio frequency modules from a Minnesota company through Singapore to Iran, some of which were later found in unexploded IEDs in Iraq. Seng and Hia are also accused of conspiring to defraud the United States relating to the shipment of military antennas from a Massachusetts company to Singapore and Hong Kong. Singapore has agreed to seek extradition for Wong and Nam on the charge of conspiracy to defraud the United States relating to the components shipped to Iran, and to seek extradition for Seng and Hia on the charge of conspiracy to defraud the United States relating to the military antenna exports.

In coordination with the criminal actions announced today, the Commerce Department announced the addition of 15 persons located in China, Hong Kong, Iran and Singapore to the Commerce Department’s Entity List. In addition to the five individual defendants in this case, the Commerce Department named additional companies and individuals associated with this conspiracy. In placing these parties on the Entity List, the Commerce Department is imposing a licensing requirement for any item subject to Commerce regulation with a presumption that such a license would be denied.

Exports of U.S. Components Later Found in IEDs

According to the indictment, IEDs caused roughly 60 percent of all American combat casualties in Iraq between 2001 and 2007. The first conspiracy alleged in the indictment involved radio frequency modules that have several commercial applications, including in wireless local area networks connecting printers and computers in office settings. These modules include encryption capabilities and have a range allowing them to transmit data wirelessly as far as 40 miles when configured with a high-gain antenna. These same modules also have potentially lethal applications. Notably, during 2008 and 2009, coalition forces in Iraq recovered numerous modules made by the Minnesota firm that had been utilized as part of the remote detonation system for IEDs.

The indictment alleges that, between June 2007 and February 2008, the defendants fraudulently purchased and caused 6,000 modules to be illegally exported from the Minnesota company through Singapore, and later to Iran, in five shipments, knowing that the export of U.S.-origin goods to Iran was a violation of U.S. law. In each transaction, the defendants allegedly told the Minnesota firm that Singapore was the final destination of the goods. The defendants also caused false documents to be filed with the U.S. government, in which they claimed that a telecommunications project in Singapore was the final end-use for the modules. In reality, each of the five shipments was routed from Singapore to Iran via air cargo. The alleged recipient of all 6,000 modules in Iran was Larijani, who had directed Wong, his employee in Singapore, to order them.

According to the indictment, the defendants profited considerably from their illegal trade. The defendants allegedly made tens of thousands of dollars for arranging these illegal exports from the United States through Singapore to Iran.

The indictment alleges that several of the 6,000 modules the defendants routed from Minnesota to Iran were later discovered by coalition forces in Iraq, where they were being used as part of the remote detonation systems of IEDs. In May 2008, December 2008, April 2009, and July 2010, coalition forces found no less than 16 of these modules in unexploded IEDs recovered in Iraq, the indictment alleges.

During this period, some of the defendants were allegedly communicating with one another about U.S. laws prohibiting the export of U.S.-origin goods to Iran. For example, between October 2007 and June 2009, Nam contacted Larijani in Iran at least six times and discussed the Iran prohibitions and U.S. prosecutions for violation of these laws. Nam later told U.S. authorities that he had never participated in illicit exports to Iran, even though he had participated in five such shipments, according to the indictment.

Exports of Military Antennas

The indictment further charges Seng, Hia, and Corezing with a separate fraud conspiracy involving the illegal export of two types of military antenna from the United States. The indictment alleges that these defendants conspired to defraud the United States by causing a total of 55 cavity-backed spiral antennas and biconical antennas to be illegally exported from a Massachusetts company to Singapore and Hong Kong without the required State Department license.

These military antennas are controlled for export as U.S. munitions and are used in airborne and shipboard environments. The indictment states that the biconical antenna, for example, is used in military aircraft such as the F-4 Phantom, the F-15, the F-111, the A-10 Thunderbolt II and the F-16 combat jets.

Seng, Hia and Corezing are alleged to have, among other things, conspired to undervalue the antennas to circumvent U.S. regulations on the filing of shipper’s export declarations to the U.S. government. They also allegedly used false names and front companies to obtain the antennas illegally from the United States.

Additional Misrepresentations

The indictment further alleges that Larijani, based in Iran, made false statements about doing business with an accused Iranian procurement agent and that he attempted to obstruct an official proceeding by the U.S. Department of Commerce.

In January 2010, the Department of Commerce placed Larijani’s company, Opto Electronics, on the Entity List, which is a list of companies to which U.S. businesses cannot export controlled dual-use items without obtaining U.S. government licenses. In response, Larijani repeatedly contacted Commerce Department officials in Washington, D.C., from Iran, requesting that his company be removed from the Entity List, according to the indictment. Commerce officials advised Larijani that, in considering whether his firm should be removed from the list, he needed to disclose whether he or his firm had any involvement with Majid Kakavand or Evertop Services Sdn Bhd.

Kakavand is an accused Iranian procurement agent who has been indicted in the United States, along with his Malaysian company Evertop Services, for illegally exporting U.S. goods to Iran, including to military entities in Iran involved in that nation’s nuclear and ballistic missile programs. Kakavand remains a fugitive and is believed to be in Iran.

According to the indictment, Larijani denied to Commerce officials on three occasions that he or his company, Opto Electronics, had done any business with Kakavand or Evertop Services. In fact, the indictment alleges that Larijani had been in communication with others about his business dealings with Kakavand on at least five occasions from 2006 through 2009.

This investigation was jointly conducted by ICE agents in Boston and Los Angeles; FBI agents in Minneapolis; and Department of Commerce, Bureau of Industry and Security agents in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection, the State Department’s Directorate of Defense Trade Controls, the Treasury Department’s Office of Foreign Assets Control, and the Office of International Affairs in the Justice Department’s Criminal Division, particularly the Justice Department Attaché in the Philippines, as well as the FBI and ICE Attachés in Singapore.

U.S. law enforcement authorities thanked the government of Singapore for the substantial assistance that was provided in the investigation of this matter.

The prosecution is being handled by Assistant U.S. Attorneys Anthony Asuncion and John W. Borchert of the U.S. Attorney’s Office for the District of Columbia; and Trial Attorneys Jonathan C. Poling and Richard S. Scott of the Counterespionage Section of the Justice Department’s National Security Division.

The public is reminded that an indictment contains mere allegations. Defendants are presumed innocent unless and until proven guilty in a court of law.