Dublin Man Sentenced for Making False Statements on Export Forms for Shipments to China
|U.S. Attorney’s Office October 31, 2013|
COLUMBUS—Qiang “John” Wu, 47, of Dublin, Ohio has been sentenced to six months in prison, followed by three years under court supervision, for making a materially false statement relative to the exportation of laser technology to the People’s Republic of China. Wu was also ordered to pay approximately $282,000 in fines and fees, as well as to pay back taxes due for several years.
Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation; Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kathy A. Enstrom, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI); and William J. Hayes, Acting Special Agent in Charge, Immigrations and Customs Enforcement (ICE) Homeland Security Investigations (HSI) announced the sentence imposed by U.S. District Judge Gregory L. Frost.
“This investigation shows there are severe implications for the unlawful transfer of U.S. technology to foreign countries,” stated Kevin R. Cornelius, Special Agent in Charge, of the Cincinnati Division of the Federal Bureau of Investigation. “The United States will continue to protect sophisticated technology and pursue anyone who attempts to obtain or share this equipment illegally.”
According to court documents, the investigation identified seven shipments Wu sent to China through his business, known as Adv-Tech International LLC, between October 17, 2007 and August 31, 2010. Wu knowingly failed to disclose the true end-user on the U.S. Customs and Border Protection Shippers Export Declaration (SED). The items exported, including laser equipment, are considered dual-use technologies with both military and civilian applications.
The investigation revealed two of the true end-users in China as state-owned institutions involved in laser and optical research with military applications. Wu was found to have knowingly filed inaccurate export declarations to deter scrutiny of these shipments by U.S. authorities. Wu is a citizen of China and a legal permanent resident of the United States.
Wu failed to report to the IRS a significant portion of the proceeds of these transactions, some of which were deposited into a U.S. bank account and some of which were diverted to accounts held by Wu in the People’s Republic of China. As a result, Wu has been ordered to file amended tax returns for the tax years 2006 through 2011 and pay any additional taxes due. A civil Foreign Bank Account Reporting (FBAR) penalty of $100,000 was also ordered for failing to report money Wu held in foreign bank accounts.
SAC Cornelius commended the cooperative investigation conducted by the IRS, HSI, and the FBI. He also recognized the work of the U.S. Attorney’s Office for the Southern District of Ohio, who prosecuted the case.