Background

The Department of Justice reports that a South Bay resident has been charged with smuggling and violating U.S. export control laws by allegedly secretly funneling sensitive aeronautics software to a Beijing university. He faces statutory penalties of up to 20 years in prison for the alleged violations of the International Emergency Economic Powers Act as well as up to 10 years in prison for the smuggling charge, in addition to a fine of over $1 million.

According to the DOJ, the man unlawfully and without a license exported and facilitated the sale and transfer of software to an entity on the Entity List – Beijing University of Aeronautics and Astronautics (BUAA), also known as Beihang University. At issue in the case is a software package that is marketed for the development of unmanned aircraft. Despite being aware that BUAA was on the Entity List, the man allegedly arranged to sell and transfer this software to that entity and exported the software directly in July 2018. The complaint also alleges that the man used an intermediary in hopes that the illegal transfer would not be detected.  

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