Download pdf - EIB World Trade HeadlinesBest encrypted messaging apps In alphabetical order: Facebook Messenger Download: Android (free) | iOS (free) Facebook Messenger barely made this list, because

Evolutions In Business • www.eib.com • (978) 256-0438 Fax: (978) 250-4529 • P.O. Box 4008, Chelmsford, MA 01824

February 15, 2017 – Volume 9, Issue 4

EIB World Trade Headlines

NEWSLETTERNOTES*CBP,ICESeizeRecordNumberofShipments…*NIARjoinsNASA-ledgroup…*ClimateChange…*BISArticles*Aviation…*7bestencryptedmessaging…*U.S.Army… *SenateconfirmsformerExxon…*OFAC*MarketForecastindicatesMilitary…*U.S.NuclearEngineerPleads…*CYBER,HACKING,DATATHEFT…*ChineseNationalAdmits…*SingaporeManPleads…*TextronBeginsOn-WaterTestingforCUSV

CBP,ICESeizeRecordNumberofShipmentswithIntellectualPropertyRightsViolationsinFY2016

ReleaseDate:January13,2017 Seizedgoodswouldhavebeenworthmorethan$1.38billionifgenuineWASHINGTON–U.S.CustomsandBorderProtection(CBP)andU.S.ImmigrationandCustomsEnforcement(ICE)seizedarecordnumberofshipmentscontaininggoodsthatviolatedIntellectualPropertyRights(IPR)inFY2016.ThenumberofIPRseizuresincreased9percentinFY2016tomorethan31,560.Thetotalestimatedmanufacturer’ssuggestedretailprice(MSRP)oftheseizedgoods,hadtheybeengenuine,increasedtomorethan$1.38billion.Asaresultofenforcementefforts,ICEHomelandSecurityInvestigationsarrested451individuals,obtained304indictments,andreceived272convictionsrelatedtointellectualpropertycrimesinFY2016.ThePeople’sRepublicofChinaremainedtheprimarysourceeconomyforcounterfeitandpiratedgoodsseized,accountingfor$616millionor45percentofthetotalestimatedMSRPvalueofallIPRseizures.HongKongagainwasthesecondlargestsourceofIPRinfringingshipments,accountingfornearly$600millionor43percentofthetotalMSRPvalueofallIPRseizures.

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NIAR joins NASA-led group to advance aviation composites

BYJERRYSIEBENMARKjsiebenmark@wichitaeagle.comApublic-privateeffortlaunchedbyNASAtobolsterknowledgeofcompositematerialsandimproveaircraftperformancenowincludesWichitaStateUniversity’sNationalInstituteforAviationResearch.NIARhasjoinedNASA’sAdvancedCompositeConsortium,whichincludestheFederalAviationAdministration,Boeing,GEAviationandOrbitalATK.Theconsortiumaimstodecreaseproductdevelopmentandcertificationtimesforcompositesusedinaeronautics,accordingtoaWSUnewsreleaseonTuesday.“Ourexperienceandunderstandingofcompositematerialpropertiesandcertificationprocesseswilladdtothealreadystrongintellectualmembership,”saidRoyalLovingfoss,associatedirectorofNIAR’sCompositesandAdvancedMaterialsLab.“Thecollaborativeexperiencewillbringnewideastotheforefrontandallowforasharingofinformationthatwillbenefittheaviationcommunityasawhole.”

Climate Change and Robotics

Recently,scientistsreportedthattheEarthreacheditshighesttemperatureonrecordin2016,trouncingarecordsetonlyayearearlier,whichbeatonesetin2014.Itisthefirsttimeinthemoderneraofglobalwarmingdatathattemperatureshaveblownpastthepreviousrecordthreeyearsinarow(below).IntheUnitedStatesalonethereareover3,500landfillsthatemit20%ofdangerousmethanegasintotheatmosphere.Since1960,humanshavedoubledthedailygarbagecontributionduetoourthirstforplasticwaterbottles.Justlastyear,Americansusedabout50billionplasticwaterbottles,with80%endingupinlandfills.Thismeansthat38billionwaterbottlesor$1billionworthofrecycledmaterialsarewastedeveryyear.Mostoftheworld’srecyclingplantscannotaffordlargeindustrialspectrometerstosortgarbage,andrelyoninefficient,expensive,humanlabor……..Watchthevideobelow:https://youtu.be/hUKNTaPQwBc

BIS Articles 1/19/1782FR6218AmendmentstotheExportAdministrationRegulationsImplementinganAdditionalPhaseofIndia-U.S.ExportControlCooperationInthisfinalrule,theBureauofIndustryandSecurity(BIS)amendstheExportAdministrationRegulations(EAR)toimplementtheIndia–U.S.JointStatementofJune7,2016(JuneStatement),whichrecognizedtheUnitedStatesandIndiaasMajorDefensePartners.ThisruleamendstheEARbyestablishingalicensingpolicyofgeneralapprovalforexportsorreexportstoortransferswithinIndiaofitemssubjecttotheEARandcontrolledonlyforNationalSecurityorRegionalStabilityreasons.Inaddition,BISamendstheenduseandenduserprovisionsoftheValidatedEndUser(VEU)authorizationtostatethatitemsobtainedunderauthorizationVEUinIndiamaybeusedforeithercivilormilitaryendusesotherthanthosethatareforuseinnuclear,"missile,"orchemicalorbiologicalweaponsactivities.1/19/1782FR6216SupportDocumentRequirementsWithRespecttoHongKongThisrulerequirespersonsintendingtoexportorreexporttoHongKonganyitemsubjecttotheExportAdministrationRegulations(EAR)andcontrolledontheCommerceControlList(CCL)fornationalsecurity(NS),missiletechnology(MT),nuclearnonproliferation(NPcolumn1),orchemicalandbiologicalweapons(CB)reasonstoobtain,priortosuchexportorreexport,acopyofaHongKongimportlicenseorawrittenstatementfromtheHongKonggovernmentthatsuchalicenseisnotrequired.ThisrulealsorequirespersonsintendingtoreexportfromHongKonganyitemsubjecttotheEARandcontrolledforNS,MT,NPcolumn1,orCBreasonstoobtainaHongKongexportlicenseorastatementfromtheHongKonggovernmentthatsuchalicenseisnotrequired.TheruleiseffectiveonApril19,2017.

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Aviation Week Network Selects Top 20 Aerospace-Bound Engineering

Students

NEWSPROVIDEDBYAviationWeekNetworkJan12,2017,09:00ETNEWYORK,Jan.12,2017/PRNewswire/--AviationWeekNetwork(http://www.aviationweek.com),incollaborationwiththeAmericanInstituteofAeronauticsandAstronautics(AIAA),announcedtodaythewinnersofitsawardsprogram,"Tomorrow'sEngineeringLeaders:The20Twenties."Theawardsrecognizetopscience,technology,engineering,andmathundergraduateandgraduatestudents.TheprogramconnectsthenextgenerationofaerospaceanddefensetalentwithestablishedinnovatorsandleadershonoredattheLaureatesAwards,whohavecreatedmanyofthe"firsts"drivinginnovationinthe21stcentury."Oneofthepillarsofourservicetotheaerospacecommunityisactivelyengaginganddevelopingnext-generationtechnologytalentwhoareessentialtothefutureofthisexceptionalindustry,"GregHamilton,AviationWeekNetworkpresident,said."Truly,thisyear'snomineesandwinnersrepresentthebestintermsoftheirtalent,theircreativity,andability.""Thewinnersforthisyear's20Twentiesprogramreflectthediversity,ingenuityandremarkabletalentfoundwithintheaerospacecommunity,"saidSandyMagnus,AIAAexecutivedirector."Eachoftheseoutstandingstudents,fromaroundtheworld,ismakingsignificantcontributionstotheirfieldsofstudy–rangingfromelectricpropulsiontohypersonicstoautonomousvehicles–aswellasworkingtomaketheworldabetterplace.Theirresearchisshapingnotonlythefutureofaerospace,butthefutureofhumanity,andeachisuniquelyworthyofourpraiseandthishonor."Thisyear'srecognitionprogramhadqualifiednomineesfrom36differentuniversities.ThewinnerswillbehonoredduringAviationWeek's60thAnnualLaureatesAwardsMarch2attheNationalBuildingMuseum,Washington,DC.The201720Twentieswinnersare:

(*Continued On The Following Column)

-KeenanE.S.Albee,ColumbiaUniversity-GeoffreyAndrews,PurdueUniversity-JakobBludau,TechnicalUniversityofMunich-JuliaCrowleyFarenga,PurdueUniversity-JohnL.Deaton,U.S.AirForceAcademy-JuliaDi,ColumbiaUniversity-JenniferDomanowski,BoiseStateUniversity-KarlDomjahn,TheUniversityofQueensland-AlexanderW.Feldstein,MassachusettsInstituteofTechnology-BrianFree,UniversityofMaryland-KellyHenckel,UniversityofMichigan-RebeccaE.Hill,UniversityofMichigan-MatthewRyanHurst,UniversityofColorado,Boulder-RubbelKumar,UniversityofMaryland-BravenC.Leung,GeorgiaInstituteofTechnology-WanyiNg,UniversityofMaryland-KristenRailey,MassachusettsInstituteofTechnology-ChristineReilly,UniversityofColorado,Boulder-RoseWeinstein,UniversityofMaryland-EmilyMarieZimovan,PurdueUniversityFormoreinformationabout20TwentiesAwards,[email protected]

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7 best encrypted messaging apps for all the Edward Snowdens out there

Lovehimorhatehim,EdwardSnowdenmademanyofusmoreaware.Wenowpaycloseattentiontoouronlineprivacyandcareaboutthingslikemetadata,surveillance,digitalsnooping,anddatatheft.Whilegovernmentsandcompanieswagewarabouthowmuchofourinformationshouldbeaccessibleindifferentsituations,appdevelopersaregivingusthetoolstodecideforourselveswhatwewanttoshare.They'recreatingencryptedservicesandlaunchingend-to-endencryptionoptionswecanenableinapps.Withthesetools,we'reabletomakesurethatonlyus-andthepeoplewe'recommunicatingwith-canreadwhatissent.Nobodyinbetween,notthegovernmentnoreventhecompaniesanddevelopersofferingthesetools,canaccessit.Manydifferentdepartmentsandpoliceagenciesprefertohaveaccesstoallourcommunicationsinordertostopcriminals,andbecauseofthat,end-to-endencryptedservices,whichagainmeansonlythesenderandtherecipientareabletoreadmessages,arehotlydebated.Butprivacycampaignerswarnthatunderminingencryptionisarightsviolation.Sometimesencryptionhappensautomatically,sothere'snoneedtoturnonasetting.Othertimes,it'strickier.Youmayevenneedtosetupsecretchats.Inthepost-Snowdenera,youcanneverbetooconcernedaboutyourprivacy.Withthatinmind,herearesomeofthebestencryptedmessagingappsavailablenowforAndroidandiOSdevices.BestencryptedmessagingappsInalphabeticalorder:FacebookMessengerDownload:Android(free)|iOS(free)FacebookMessengerbarelymadethislist,becausetechnically,itisn'tfullyend-to-endencrypted.Weonlyincludeditbecauseit'stheworld'smostpopularmessagingapp,anditdoesactuallyofferanoptionalend-to-endencryptionfeature,calledSecretConversation,whichyoucanenableforindividualchatconversationsfromanAndroidoriOSdevice(it'snotyetavailablefordesktops).


Messagessentusingend-to-endencryptionwon'tsupportGIFs,calls,orvideos,butFacebookuserswillbeabletosettimersonmessages,enablingthethreadstoself-destructafterasetamountoftime,sortoflikeSnapchatSnaps.Messenger'sencryptionisalsobasedonOpenWhisperSystem'sSignalProtocol,whichiswhistleblowerSnowden'spreferredmeansofencryption.Facebooksaidbothyouandtheotherpersoninthesecretconversationhaveadevicekeythatyoucanusetoverifythatthemessagesareend-to-endencrypted.Thefeatureonlyworksfromonephone,tablet,orcomputer.Keepinmindthatthepersonyou'remessagingcouldstillchoosetosharetheconversationwithothersviaascreenshot.Tolearnmore,checkoutFacebook'sHelpCenter.SignalDownload:Android(free)|iOS(free)OpenWhisperSystems'Signalisprobablythebest-knownmessagingappformobileusersconcernedabouttheirprivacy.Itisafreeappthatprovidesmessagingandvoice-callservices-andeverythingiscompletelyend-to-endencrypted.Youcansendtextmessagestoindividualsandgroups,placecalls,sharemediaandotherattachmentstoyourphonecontacts,andmore.Thebestpartisyoudon'thavetousePINcodesorgeneratespeciallogins.Messagescanalsoself-destructafterasetamountoftime.AndifyouwanttouseSignalfromyourcomputer,there'sanewChromebrowserpluginfordesktops.SilentDownload:Android($9.95/mo)|iOS($9.95/mo)SilentCircleisanothertrustedsolutionthatprovidesnotonlysecure-communicationssoftwarebutalsohardwareliketheBlackphone.Thecompany'smobile-messagingplatform,SilentPhone,offersencrypted,self-destructingmessagesandfiletransfersaswellasencryptedvideoandvoicecalls.Youholdtheencryptionkey,notSilentCircle,sowhileyourdatadoespassthroughSilentCircle'snetwork,itcan'treadanything.Unfortunately,youmustbeapaidsubscribertousetheapp.TelegramMessengerDownload:Android(free)|iOS(free)TelegramMessengerisoneofthemoreuser-friendlysolutions-andit'smarketedasthe"fastest".JustlinkyourTelegramaccounttoyourphonenumber,andyoucanusetheapptosendencryptedchatmessagesoverthecloud.Youcanevensetmessagetoself-destruct.EverythingonTelegram,includingchats,groups,media,etc,isencrypted.Italsoincludesfunphoto-andvideo-editingtools,aswellasasticker/GIFplatformsoyoucangetcreativewithyourchats.

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WhatsAppDownload:Android(free)|iOS(free)WhatsAppslowlyrolledoutitsend-to-endencryptionoffering.ItfirstpartneredwithOpenWhisperSystemsin2014toaddthesameencryptionmethodsusedinSignal,andthenin2016,itannouncedthatallWhatsAppcommunications-voicemessages,photos,videomessages,chats,groupchats,etc-areprotectedbyend-to-endencryption.Itevenprovidesasecurity-verificationcodethatyoucansharewithacontacttoensurethatyourconversationisencrypted.WickrMeDownload:Android(free)|iOS(free)WickrMeisalesser-knownend-to-endencrypted-messagingapp,butitworksmuchliketheothers.Youcansendprivate,self-destructingmessages,photos,video,andvoicemessagestootherWickrcontacts.Italsodeletesmetadatalikegeotagsandmessagetimes.Plus,there'sa"SecureShredder"featurethatenablesyoutosecurelyeraseattachedfiles,messages,andotherdatashouldsomeonetrytorecoveranything.ViberDownload:Android(free)|iOS(free)Viberrecentlyjoinedtheend-to-endencryptioncrowd.It'suniqueinthatitsportsacolour-codedsystemthatshowhowprotectedyourconversationsarewithaperson.Greymeansencryptedcommunications,greenmeansencryptedcommunicationswithatrustedcontact,andredmeansthereisanproblemwiththeauthenticationkey.Vibercanalsohidechatroomsonashareddevice.Andeverything,fromtexttovoicemessaging,istiedtoyournumber.Butifyouwanttocallnon-Viberusers,you'llhavetopayup.WorthmentioningiMessage:Apple’sdefaultmessagingappisalsoencrypted,butencryptionexpertshavenotediMessageusesanApple-developedencryptionthatdoesn'tfollowallofthebestpractices.Youcan’tverifycontacts’identities,forinstance,andthecodeisn’topentoindependentreview.Also,anexploitwasrecentlyfoundthatwouldallowasophisticatedattackertodecryptphotosandvideossentovertheservice.Still,Applecouldn’treadthemessageseveniftheywereorderedtobyacourtorder,sothat'snice.

U.S. Army, GM Team Up to Build Fuel Cell Vehicle

TheZH2isanelectriccarthatusesfuelcelltechnologyandwasunveiledataDCautoshow.BYKEN-YONHARDY,STARSANDSTRIPES/JANUARY27,2017USARMY/DAVIDVERGUN(TNS)--WASHINGTON—TheZH2fuelcellelectricvehicle,developedandbuiltbyGeneralMotorsfortheU.S.Armytotestandevaluatethereadinessoffuel-cellpropulsioninmilitary-likeenvironments,isinthepubliceyethisweekattheWashingtonAutoShow.RepresentativesofofGMandtheArmy'sTankAutomotiveResearch,DevelopmentandEngineeringCenter(TARDEC)metwithreportersattheWalterE.WashingtonConventionCenteronThursdaytoshowoffthenewtechnology.“Ourengineersandscientistsareexcitedaboutthesoldiers’feedbackontheirexperienceusingafuelcellvehicle,”saidTARDECDirectorDr.PaulRogers.“Ultimatelythesewarfightersareourcustomer,andbringingtheirvehiclesthecapabilitiesthatmaketheirmissionssuccessfulandbringthemhomesafelyisparamount.”RELATEDHydrogen-CellBusDebutsatColumbus,Ohio,StatehouseOaklandExpoShowcasesAlternativeFuelVehiclesConnecticuttoExpandItsFuelCellIndustryTheZH2,aversionoftheChevroletColoradomid-sizetruck,willbeondisplayforthedurationoftheshowfromJan.27throughFeb5.©2017theStarsandStripesDistributedbyTribuneContentAgency,LLC.

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Senate confirms former Exxon CEO Rex Tillerson as secretary of state

RexTillersonwonconfirmationWednesdaytobecomesecretaryofstate,placingalifelongoilcompanyexecutiveatthehelmoffwhatPresidentTrumphaspromisedwillbean“Americafirst”foreignpolicy.

TillersontakesofficeafterachaoticfirstfewweeksfortheTrumpadministrationthatsawbigswingsawayfromthenationalsecurityandforeignpolicypoliciesinplaceundertheObamaadministration.

TheStateDepartmenthenowheadshasacentralroleinrefugeeresettlementandotherimmigrationandtravel-relatedpoliciesnowatissueinaWhiteHouseordersuspendingtheadmissionofrefugeesandrestrictingentryforcitizensfromseveralMuslim-majoritynations.

HealsoisheadofDefenseTradeOfficewhichoverseaslicensingorMilitaryGoods,TechnicalDataandServicesaroundtheglobe.

OFAC

PublicationofKingpinAct/Panama-relatedGeneralLicense2/1/2017Today,theDepartmentoftheTreasury'sOfficeofForeignAssetsControl(OFAC)publishedtwoKingpinActGeneralLicenses:GeneralLicense5C,"AuthorizingCertainTransactionsandActivitiesRelatedtothePanamanianGovernmentSeizureofBalboaBank&Trust",andGeneralLicense6C,"AuthorizingCertainTransactionsandActivitiesRelatedtotheInterventionbytheSuperintendencyofSecuritiesMarketsofPanamainBalboaSecurities,Corp."TheselicensesextendexistingauthorizationsregardingcertaintransactionsandactivitiesthatwouldotherwisebeprohibitedpursuanttotheKingpinAct.BothauthorizationsexpireonApril7,2017,unlessextendedorrevoked.AmendmenttoPublicationofKingpinAct/Panama-relatedGeneralLicense2/2/2017Thenotice"KingpinAct/Panama-relatedGeneralLicense"wasamendedonFebruary2,2017toreadasfollows:Today,theDepartmentoftheTreasury'sOfficeofForeignAssetsControl(OFAC)publishedtwoKingpinActGeneralLicenses:GeneralLicense5C,"AuthorizingCertainTransactionsandActivitiesRelatedtothePanamanianGovernmentSeizureofBalboaBank&Trust",andGeneralLicense6C,"AuthorizingCertainTransactionsandActivitiesRelatedtotheInterventionbytheSuperintendencyofSecuritiesMarketsofPanamainBalboaSecurities,Corp."TheselicensesextendexistingauthorizationsregardingcertaintransactionsandactivitiesthatwouldotherwisebeprohibitedpursuanttotheKingpinAct.BothauthorizationsexpireonApril7,2017,unlessextendedorrevoked.OFACisalsoamendingtwoFrequentlyAskedQuestions.UpdatetotheIranianTransactionsandSanctionsRegulations,31CFRPart560,Section560.530(a)(3),ListofMedicalDevicesRequiringSpecificAuthorization2/2/2017TheDepartmentoftheTreasury'sOfficeofForeignAssetsControl(OFAC)isupdatingtheListofMedicalDevicesRequiringSpecificAuthorizationasidentifiedin31C.F.R.§560.530(a)(3)(ii)oftheIranianTransactionsandSanctionsRegulations,31C.F.R.part560(ITSR),toupdateandclarifythescopeofmedicaldevicesthatarenotauthorizedforexportationorreexportationpursuanttothegenerallicenseat31C.F.R.§560.530(a)(3)(i).


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Forreference,OFACpreviouslypublishedrelatedfrequentlyaskedquestionsonthegenerallicensetoprovideguidanceonthescopeandlimitationsofthisgenerallicense.PublicationofCyber-relatedGeneralLicense2/2/2017Today,theDepartmentoftheTreasury'sOfficeofForeignAssetsControl(OFAC)publishedCyber-relatedGeneralLicense(GL)1,"AuthorizingCertainTransactionswiththeFederalSecurityService,"pursuanttoExecutiveOrder13694ofApril1,2015,"BlockingthePropertyofCertainPersonsEngaginginSignificantMaliciousCyber-EnabledActivities."GL1authorizescertaintransactionswiththeFederalSecurityService(a.k.a.FSB)thatarenecessaryandordinarilyincidenttorequestingcertainlicensesandauthorizationsfortheimportation,distribution,oruseofcertaininformationtechnologyproductsintheRussianFederation,aswellastransactionsnecessaryandordinarilyincidenttocomplywithrulesandregulationsadministeredby,andcertainactionsorinvestigationsinvolving,theFSB.

Market Forecast indicates Military UAV market to grow with CAGR of 38.7%

TheglobalmilitaryUAVmarketisprojectedtogrowtoUSD13.9billionby2026,ataCAGRof38.7%from2016to2022.WheretheMUAV/MAVsaredominantintermsofunitsdeliveredandtheUCAVsintermsvalue.

Inrecentyears,therehasbeenagrowingusebymilitariesaroundtheworldofUnmannedAerialVehicles,morepopularlyknownasdrones.Morethan10,000UAVsarenowoperatedorcomingintoservicewithmilitariesaroundtheworld.TheirincreasedusagehasmostlybeendrivenbytheoperationalexperienceoftheUSandIsrael,aswellasrecentoperationsinAfghanistan,IraqandSyriaforintelligence,surveillanceandreconnaissance(ISR)taskswiththeUSleadingthewayintermsofspendingonresearch,procurementandsupport.Othercountriesaregaininganddevelopingtheirownplatformsinparttoenhancetheirmilitaryintelligencecapabilities,orassomeexerciseinnationalprestigetodeveloptheirowndefenseandaerospaceindustries.

U.S. Nuclear Engineer Pleads Guilty to Violating the Atomic Energy Act

SzuhsiungHo,akaAllenHo,66,anaturalizedU.S.citizen,pleadedguiltytoconspiracytounlawfullyengageorparticipateintheproductionordevelopmentofspecialnuclearmaterialoutsidetheU.S.,withouttherequiredauthorizationfromtheU.S.DepartmentofEnergy(DOE)inviolationoftheAtomicEnergyAct.ActingAssistantAttorneyGeneralforNationalSecurityMaryB.McCordandU.S.AttorneyNancyStallardHarroftheEasternDistrictofTennesseemadetheannouncement.InApril2016,afederalgrandjuryissuedatwo-countindictmentagainstHo;ChinaGeneralNuclearPowerCompany(CGNPC),thelargestnuclearpowercompanyinChina,andEnergyTechnologyInternational(ETI),aDelawarecorporation.AtthetimeoftheindictmentHowasanuclearengineer,employedasaconsultantbyCGNPCandwasalsotheownerofETI.CGNPCspecializedinthedevelopmentandmanufactureofnuclearreactorsandwascontrolledbyChina’sState-OwnedAssetsSupervisionandAdministrationCommission.Accordingtodocumentsfiledinthecase,beginningin1997andcontinuingthroughApril2016,HoconspiredwithotherstoengageorparticipateinthedevelopmentorproductionofspecialnuclearmaterialinChina,withoutspecificauthorizationtodosofromtheU.S.SecretaryofEnergy,asrequiredbylaw.HoassistedCGNPCinprocuringU.S.-basednuclearengineerstoassistCGNPCanditssubsidiarieswithdesigningandmanufacturingcertaincomponentsfornuclearreactorsmorequicklybyreducingthetimeandfinancialcostsofresearchanddevelopmentofnucleartechnology.Inparticular,HosoughttechnicalassistancerelatedtoCGNPC’sSmallModularReactorProgram;CGNPC’sAdvancedFuelAssemblyProgram;CGNPC’sFixedIn-CoreDetectorSystem;andverificationandvalidationofnuclearreactor-relatedcomputercodes.UnderthedirectionofCGNPC,Hoalsoidentified,recruited,andexecutedcontractswithU.S.-basedexpertsfromthecivilnuclearindustrywhoprovidedtechnicalassistancerelatedtothedevelopmentandproductionofspecialnuclearmaterialforCGNPCinChina.HoandCGNPCalsofacilitatedthetraveltoChinaandpaymentstotheU.S.-basedexpertsinexchangefortheirservices.


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SentencinghasbeensetforMay17,2017,at11:00a.m.,inU.S.DistrictCourtinKnoxville,Tennessee.Hofacesamaximumsentenceof10yearsinprisonandamaximum$250,000fine.ThemaximumstatutorysentenceisprescribedbyCongressandisprovidedhereforinformationalpurposes,asthesentencingofthedefendantwillbedeterminedbythecourtbasedontheadvisorySentencingGuidelinesandotherstatutoryfactors.ThiscasewasinvestigatedbytheFBI,TennesseeValleyAuthority-OfficeoftheInspectorGeneral,DOE-NationalNuclearSecurityAdministrationandU.S.ImmigrationandCustomsEnforcementHomelandSecurityInvestigations,withassistancefromotheragencies.AssistantU.S.AttorneysCharlesE.AtchleyJr.andBartSlabbekornoftheEasternDistrictofTennessee,andTrialAttorneyCaseyT.ArrowoodoftheCounterintelligenceandExportControlSectionandAttorneyJeffreyM.SmithoftheAppellateUnitintheNationalSecurityDivision,representedtheU.S.

CYBER, HACKING, DATA THEFT, COMPUTER INTRUSIONS & RELATED Ransomware: Now a Billion Dollar a

Year Crime and Growing

Ransomwarepaymentsfor2016areexpectedtohitabilliondollars,accordingtotheFBI.Thatcomparestojust$24millionpaidin2015.Andit'sexpectedtogetevenworsethisyear—withmorevictimsandmoremoneylost.Expertsevenpredictthatthecloudcouldcomeunderattackthisyearbecauseit'ssuchalucrativetargetandcouldresultinransompaymentsinthemillionsofdollars.RansomwareisafamilyofmalwarethatblocksaccesstoaPC,serverormobiledevice,orencryptsallthedatastoredonthatmachine.It'stypicallydeliveredviamaliciousemailorinfectedthird-partywebsites.Toregainaccessorcontrolofthedata,theusermustpayaransom—typicallyviabitcoin.Theencryptionisunbreakableandsimplyremovingthemalwarewillnotsolvetheproblem.Thevictimisforcedtopayfortheuniquesoftwarekeythatwillunlockeverything."It'slikesomesortofgoldrush,"saidLimorKessem,executivesecurityadviserforIBMSecurity."Cybercriminalsareusingransomwaretobringextortiontothemassesandmorecriminalsarenowdoingitbecausethey'reinterestedingettingapieceoftheaction."


Theaverageransomdemandedin2016was$679,morethandoublethe$295demandedattheendof2015,accordingtoareportfromSymantec.Somebusinessesthatexperiencearansomwareattackaremaking4-to5-digitpaymentstogettheirdataunlocked."WedidasurveyintheU.S.anddiscoveredthat64percentofenduserswhogotransomwarepaidtheransom,"saidKevinHaley,directorofSymantecSecurityResponse."Peoplearewillingtopay,sothebadguyskeepraisingtheprice.We'llprobablyseeithitathousanddollarsbefore2017isover."Criminalgangsarenowcapableofpushingtheirmalwaretomillionsofcomputersaday.Infact,Malwarebytesreportsthat60percentofallmalwareobservedlastyearwasransomware.Noteveryonegetsinfected,butalotdo."It'safantasticmoneymaker,"saidAdamKujawa,directorofmalwareIntelligenceforMalwarebytes."Withothertypesofmalware,acriminalhastodealwithcollectingpersonalinformationlikepasswordsorcreditcardnumbersandthentrytoresellthatintheundergroundmarketplacetoothercriminals,"hesaid."Withransomware,it'sdirect.Youinfectsomeone,theypayyoudirectly."It'sGoingtoGetMuchWorseDigitalsecurityexpertstellNBCNewsthenumberofransomwareattacksskyrocketedin2016andthesophisticationofthismalwaregrewexponentially.Andtheysayit'sgoingtogetworse.Morecriminalsareexpectedtoshifttoransomwarebecausetheycannowbuyready-maderansomwaresoftwarefromsuperhackers.Thesetoolkitsmakeitpossibleforanyonewithbasiccomputerskillstolaunchsophisticatedattacks.Themenacewillalsogrowasnewvariantsofthismalicioussoftwarearedevelopedthatdomorethansimplyencryptthedata.Forexample,"Jigsaw"encryptsthedataandthenstartsdeletinggroupsoffilestoputpressureonthevictimtopayupquickly."Chimera"threatenstopostthevictim'sfilesonline,includingpicturesandvideos,iftheransomisnotpaidbythedeadline.WemayalsoseeattacksondevicesthatusetheAndroidoperatingsystem.Symantechasalreadydiscoveredransomwarecalled"Flocker"thatcanlockAndroidsmartTVs.Withransomware,thecriminalscanbeanywhereintheworldandattackanyindividualorcorporatecomputerconnectedtotheInternet.AsurveybySymantecfoundthattheU.S.wasthefavoritetargetwith28percentofglobalinfections.Canadawasadistantsecondat16percent.


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AnyonehitbyransomwareshouldfileareportviatheFBI'sInternetCrimeComplaintCenter.TheFBIalsohastipsforprotectingyourselfandyourorganization.

Bigandmedium-sizedcompaniesaremoreattractiveextortionvictims,sincetheycanpayabiggerransom.ButtheIBMreportcautionssmallbusinessesthattheyremain"aripetarget"forransomwarebecausetheiremployeesoftenlacktraininginworkplaceITsecurity.Thestudyfoundthatonly30percentofthe200smallbusinessessurveyedoffersecuritytrainingtotheiremployees,comparedto58percentoflargercompanies.

EveryoneIsatRisk

Everyonewhogoesonline—viahomecomputerormobiledevice—needstobepreparedforaransomwareattackandtakestepstoreducethechancesofinfection.

Andwhileyoumaysayyou'dneverpayifyougothit—youmightreconsiderifallofyourfinancialfiles,familypicturesoreverythingstoredonyourmobilephonearelockedandyoudon'thavebackupsanywhere.

"Youhavetoprepareforitnow.Youhavetoarmyourselfandputpropersecurityprecautionsinplacebecauseifyoudon'tprotectyourfiles,nobodyelsewill,"saidMalwarebytesAdamKujawa."Youneedtothinkofitasbeinginawarandyouneedtoprotectyourself."

Aspartofitsjust-releasedsurvey,IBMaskedmorethanathousandAmericanadultsaboutransomware.Onlyone-thirdhadheardofitand59percenthadnottakenanyproactivemeasuresinthepastthreemonthstoprotecttheirdevicesfrombeinghacked.

HowtoProtectYourself

Thinkbeforeyouclick

Mostransomwareisdeliveredviaemailthattellsyoutoclickonalinkoropenanattachment.Themessageisdesignedtogetyoutoopenthatinfectedattachment.Itcouldappeartobeinformationaboutapackagedeliveryoraninvoicethatyou'resupposedtopay.Ifyou'renotexpectingit,don'topenit.IBMfoundthatnearly40percentofallspamemailssentin2016containedransomware.

Backupallofyourdata

Youshouldhaveafrequentandregularbackuproutineforallofyourdevicesnomatterwhichoperatingsystemtheyuse.Applesoftwareisnotimmune.SymantecreportsthatinMarchof2016,"KeRanger"becamethefirstwidespreadransomwaretotargettheMacOSXoperatingsystem.Youcanbackupinthecloud,onathumbdriveorexternaldrive.Justmakesureyourbackupsaresecureandnotconstantlyconnectedormappedtothelivenetworkortheycouldalsogetinfected.


Rightnow,individualcomputerusersarethemostlikelyvictimsbecausetheytendtohavelessrobustsecurityinplace.Butaswesawlastyear,corporatesystemsarealsovulnerable.It'sbeenreportedthathospitals,policedepartments,colleges,banks,andutilitiespaidaransominordertoregainaccesstotheirinformation.InFebruary,HollywoodPresbyterianMedicalCenterinLosAngelespaidnearly$17,000tounlockthehospital'scomputernetwork."Thequickestandmostefficientwaytorestoreoursystemsandadministrativefunctionswastopaytheransomandobtainthedecryptionkey,"hospitalCEO,AllenStefaneksaidinastatementatthetime.InlateNovember,ransomwarehittheSanFranciscoMunicipalTransportationAgencyanddisabledtheticketvendingmachinesforMunilightrail.TheSymantecreportwarnsthatsomeransomwaregangsareincreasinglyinterestedinhittingbusinessesandthatthey'reusing"advanceattacktechniques,displayingalevelofexpertisesimilartothatseeninmanycyberespionageattacks."Businessesaremorelikelytopaytheransomiftheydon'thavebackupfilesandcan'tgetthingsupandrunningagainquickly.WouldYouPaytoGetYourFilesBack?IBMasked600U.S.businessleaderswhattheywoulddoiftheyfacedthissortofextortion.Thesurveyresultsshow70percentofthebusinessesinfectedwithransomwarehadpaidaransomtoregainaccesstotheirbusinessdataandsystems.Halfofthesecompaniespaidmorethan$10,000and20percentpaidmorethan$40,000.Otherkeyfindings:·Nearlyhalfoftheexecutivessurveyedsaidtheircompanyhadexperiencedaransomwareattack·Nearly60percentindicatedtheywouldpayaransomtorecoverdata·Twenty-fivepercentsaidthey'dbewillingtopaybetween$20,000and$50,000,dependingonthetypeofdatalost.LimorKessem,whowrotetheIBMSecurityreport,toldNBCNewsshewassurprisedtolearnhowmanybusinesseshadalreadyexperiencedaransomwareattack.Ransomwareisprettymuchtheonlymalwarethatcanimpedeeverythingyou'redoing,"Kessemsaid."Itcanlockupyourdevicesaltogetheroritcanlockupthedataonthosedevices.Andthiscanparalyzeabusiness."Lawenforcementdiscouragesvictimsfrompayingtheransom—believingitencouragesmoreattacksandpaysforthedevelopmentofmoreevilmalware.There'salsonoguaranteethatoncetheransomispaid,thefileswillbeunlocked.Butmanybusinessespaybecausethey'renotpreparedandfeeltheyhavenootheroption.


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Update,patchandpurgeYoushouldbesettoreceiveautomaticupdatesforallsoftware,includingoperatingsystems,appsandsecuritysoftware—onalldevices.Deleteanyapplicationsthatyourarelyorneveruse.DisablethosemacrosIBMreportsthatdocumentmacrosarenowacommonwaytodeliverransomware.That'swhymacrosforemailanddocumentsshouldbedisabledbydefault."Thisisnotsomethingthathappenstootherpeople,itcouldeasilyhappentoyou,"cautionedSymantec'sKevinHaley."Wereallyneedtostepupourprotectionbecausethebadguysaresteppinguptheirgame.There'sjusttoomuchmoneyinvolvedforthemnotto."

Chinese National Admits to Stealing Sensitive Military Program Documents

from United Technologies

YuLong,38,acitizenofChinaandlawfulpermanentresidentoftheU.S.,waivedhisrighttobeindictedandpleadedguiltytodayinNewHavenfederalcourtinConnecticut,tochargesrelatedtohistheftofnumeroussensitivemilitaryprogramdocumentsfromUnitedTechnologiesandtransportingthemtoChina.Longpleadedguiltytoonecountofconspiracytoengageinthetheftoftradesecretsknowingthattheoffensewouldbenefitaforeigngovernment,foreigninstrumentalityorforeignagent,anoffensethatcarriesamaximumtermofimprisonmentof15years.HealsopleadedguiltytoonecountofunlawfulexportandattemptedexportofdefensearticlesfromtheU.S.inviolationoftheArmsExportControlAct,anoffensethatcarriesamaximumtermofimprisonmentof20years.ThemaximumstatutorysentenceisprescribedbyCongressandisprovidedhereforinformationalpurposes.Ifconvictedofanyoffense,thesentencingofthedefendantwillbedeterminedbythecourtbasedontheadvisorySentencingGuidelinesandotherstatutoryfactors.TheannouncementwasmadebyActingAssistantAttorneyGeneralforNationalSecurityMaryB.McCord,U.S.AttorneyDeirdreM.DalyfortheDistrictofConnecticut,SpecialAgentinChargeMatthewEtreoftheFBI'sHomelandSecurityInvestigations(HSI)inBoston,Massachusetts,SpecialAgentinChargeCraigW.RupertoftheDefenseCriminalInvestigativeService(DCIS)NortheastFieldOffice,SpecialAgentinChargePatriciaM.FerrickoftheFBI’sNewHavenDivisionandSpecialAgentinChargeDanielleAngleywiththeAirForceOfficeofSpecialInvestigations(AFOSI).


“Longadmittedtostealingandexploitinghighlysensitivemilitarytechnologyanddocuments,knowinghistheftwouldbenefitChina’sdefenseindustryanddeliberatelycontravenetheembargoonU.S.MunitionsListtechnologytheUnitedStateshasimposedonChina,”saidActingAssistantAttorneyGeneralMcCord.“ExportlawsexistasanimportantpartofournationalsecurityframeworkanddisruptingandprosecutingthiskindofeconomicespionageisoneoftheNationalSecurityDivision’shighestpriorities.”“Inanefforttofurtherhisowncareer,thisdefendantstoleanextraordinaryamountofproprietarymilitaryprograminformationfromUnitedTechnologiesandtransportedmuchofthatstoleninformationtoChina,”saidU.S.AttorneyDaly.“Hisactions,whichheknewwouldbenefitChina,notonlyviolatedhisemploymentagreementanddamagedthecompany,buthavethreatenedourcountry'snationalsecurityinterests.U.S.companiescontinuetobetargetedbythosewhoseektostealintellectualproperty,tradesecretsandadvanceddefensetechnology–whetherthroughacomputerhackorcyberintrusion,orthrougharogueemployee.Workingcloselywithournation’sdefensecontractors,wewillrelentlesslyinvestigateandprosecutethosewhosteal,orattempttosteal,tradesecretsandsensitivemilitaryinformation,whetherfortheirownpersonalgainorforthebenefitofforeignactors.”“Thesesophisticatedtechnologiesarehighlysoughtafterbyouradversaries,”saidSpecialAgentinChargeEtre.“TheyweredevelopedtogivetheUnitedStatesanditsalliesadistinctmilitaryadvantage,whichiswhyHSIandourlawenforcementpartnerswillcontinuetoaggressivelytargettheindividualswhostealtheideasofothersandselltheseitems.”"Today'spleademonstratesthecommitmentoftheDefenseCriminalInvestigativeServiceandourfederallawenforcementpartnerstoidentifyingthosewhoillegallyexportsensitivedefenseinformationtoadversarialForeigngovernments,"saidSpecialAgentinChargeRupert."DCISwillcontinuetosafeguardsensitivetechnologyandtoshieldAmerica'sinvestmentinnationaldefensebydisruptingeffortsofgroupsandindividualswhotrytoillegallyacquireournationalsecurityassets."“ThiscasehighlightsthecomplexityinwhichtheFBIandlawenforcementarebeingchallengedtokeeptheintegrityofourindustryintellectualpropertyintact,”saidSpecialAgentinChargeFerrick.“Investigatingcriminalactivityofthisnaturewillcontinuetobeapriority.”“ThiscasewasenabledbytheoutstandingteamworkoftheFBI,DCIS,HSI,AFOSIandtheU.S.Attorney'soffice,”said,SpecialAgentinChargeAngley.“Inaddition,itdemonstratesthefocusoflawenforcementagenciestoprotectournation'scriticalresources.”


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Accordingtocourtdocumentsandstatementsmadeincourt,fromapproximatelyMay2008toMay2014,LongworkedasaSeniorEngineer/ScientistatUnitedTechnologiesResearchCenter(UTRC)inConnecticut.Long’semploymentatUTRCincludedworkonF119andF135engines.TheF119engineisemployedbytheU.S.AirForceF-22Raptorfighteraircraft,andtheF135engineisemployedbytheU.S.AirForceF-35LightningIIfighteraircraft.Beginningin2013,LongexpressedhisintenttoindividualsoutsideUTRCtoreturntoChinatoworkonresearchprojectsatcertainstate-rununiversitiesinChinausingknowledgeandmaterialshehadacquiredwhileemployedattheUTRC.Tothatend,Longinteractedwithseveralstate-runinstitutionsinChina,includingtheChineseAcademyofScience(CAS)andtheShenyangInstituteofAutomation(SIA),astate-rununiversityinChinaaffiliatedwithCAS.During2013and2014,LongwasrecruitedbySIAandotherstate-rununiversities,duringwhichheleveragedinformationthathehadobtainedwhileworkingatUTRCtoseekemploymentinChina,culminatinginhistraveltoChinainthepossessionofvoluminousdocumentsanddatacontaininghighlysensitiveintellectualproperty,tradesecretsandexportcontrolledtechnology,whichhehadunlawfullystolenfromUTRC.InDecember2013,afterLongagreedinprincipletojoinSIA,anSIA-CASDirectorandanSIA-CASRecruiteraskedLongtoprovidedocumentsfromhisworkatUTRCandexamplesofprojectsonwhichhehadworkedtosubstantiatetheclaimsLongmadeinhisapplication,andinterviewwithSIA.Longagreed.OnDec.24,2013,LongemailedseveraldocumentstotheSIA-CASDirector,includingadocumentthatcontainedthecoverpageofanexportcontrolledUTRCpresentationonDistortionModelingdatedSept.30,2011.WhilenegotiatingwithSIA,Longalsocontinuedtoexploreotheropportunitiesatotherstate-runinstitutionsinChina.Inoneemail,Longstated:“IhavemademymindtoreturntoChina,sohavepreparedaresearchplanbasedonmyindustryexperienceandcurrentprojects.”Intheresearchplan,Longstated:“Inthepastfiveyears,IhavebeenworkingwithPrattWhitney,alsootherUTCbusinessunits,likeUTAS(includingHamiltonSundstrandandGoodrich),Sikorsky,CCS(includingCarrierandFire&Security),andOtis.TheseuniqueworkingexperienceshaveprovidedmeagreatstartingpointtoperformR&DandfurtherspinoffbusinessinChina.IbelievemyeffortswillhelpChinatomatureitsownaircraftengines.”OnMay30,2014,LongleftUTRC.InJune2014,LongtraveledtoChinaandbeganworkingforSIA.


BeginninginJuly2014,digitalevidenceandforensicanalysisindicatedthatLongbroughtwithhimandaccessedinChinaaUTRCexternalharddrivethathadbeenissuedtohimandthatheunlawfullyretained.InJuly2014,LongwaslistedastheprojectleaderonalengthyresearchplanforCASinvolvingfourteenotherindividuals.TheplanwasrepletewithreferencestohowtheproposedresearchanddevelopmentwouldbenefitChina.Theplanstated:“Thethreemajorenginecompaniesintheworld,i.e.GE,Pratt&WhitneyintheUSandRolls-RoyceintheUK,areallusingthistechnology...Ournationlackstheabilitytoprocesshighperformancecomponents,suchasairplanewings,tailhooksoncarrieraircrafts,andblisks...Becauseofthetechnologyembargoimposedbywesterndevelopedcountries,itisverydifficultforustoobtainmoreadvanceddesignandmanufacturingtechnology...Thisresearchprojectwillincreaseourindependentability,efficientandqualityinkeycomponentmanufacturing.”OnoraboutAug.12,2014,thedocumentonDistortionModeling–thesamedocumentfromwhichLonghadsentthecoverpagetotheSIA-CASDirectoronDec.24,2013–wasaccessedontheexternalharddrive.TravelrecordsandforensicanalysisconfirmedthatbothLongandtheexternalharddrivewereinChinawhenthisfilewasaccessed.OnAug.19,2014,LongreturnedtotheU.S.fromChinathroughJohnF.KennedyInternationalAirportinNewYork.DuringasecondaryinspectionscreeningbyU.S.CustomsandBorderProtection(CBP)officers,Longwasfoundinthepossessionofalargelycompletedapplicationforworkwithastate-controlledaviationandaerospaceresearchcenterinChina.TheapplicationhighlightedcertainpartsofLong’sworkrelatedtotheF119andF135engineswhileatUTRC.OnoraboutAug.20,2014,LongemailedanindividualatauniversityinChina,attachinganupdated“achievementandfutureplan.”Intheplan,LongdiscussedhisworkrelatedtotheF119andF135U.S.militaryfighterjetenginesandstatedthathealsohadknowledgeofunpublishedUTRCprojectsinwhichtheU.S.AirForcehadshowninterest.OnNov.5,2014,LongboardedaflightfromIthaca,NewYorktoNewarkLibertyInternationalAirportinNewark,NewJersey,withafinaldestinationofChina.DuringLong’slayoverinNewark,CBPofficersinspectedLong’scheckedbaggageanddiscoveredthatitcontainedsensitive,proprietaryandexportcontrolleddocumentsfromanotherdefensecontractor,RollsRoyce.FurtherinvestigationdeterminedthattheU.S.AirForcehadconvenedaconsortiumofmajordefensecontractors,includingPrattandRollsRoyce,toworktogethertoseewhethertheycouldcollectivelylowerthecostsofcertainmetalsused.


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Aspartofthoseefforts,membersoftheconsortiumsharedtechnicaldata,subjecttorestrictionsonfurtherdissemination.RollsRoycereviewedthedocumentsfoundinLong’spossessionatNewarkLibertyAirportandconfirmedthatitprovidedthedocumentstomembersoftheconsortium,whichincludedPratt.RollsRoycefurtherconfirmedthatLongwasneveranemployeeofRollsRoyce.AreviewofUTRCcomputerrecordsindicatedthatLonghadprintedthedocumentswhileemployedatUTRC.LongwasarrestedonafederalcriminalcomplaintonNov.7,2014.AreviewofLong’sdigitalmediaseizedatthetimeofhisarrestrevealedvoluminousfilesprotectedbytheInternationalTrafficinArmsRegulationsandExportAdministrationRegulations,andvoluminousfilesproprietarytovariousU.S.companies.Inshort,theinvestigationrevealedthatLongtookhislaptopandtheUTRCexternalharddrivewithhimtoChinain2014,atwhichtimetherewasasubstantialbodyofhighlysensitive,proprietaryandexportcontrolledmaterialspresentonthatdigitalmedia.UTRChasconfirmedthattheharddrivethatLongunlawfullyretainedandaccessedinChinacontainednotonlydocumentsanddatafromprojectsonwhichLongworkedwhileemployedatthecompanybutalsofromprojectsonwhichhedidnotworktowhichhewouldhavehadaccess.Asentencingdatehasnotbeenset.Longhasbeendetainedsincehisarrest.ThisinvestigationisbeingledbytheFBIinNewHavenincoordinationwithHomelandSecurityInvestigationsinNewHavenandNewark;theDefenseCriminalInvestigativeServiceinNewHaven;theU.S.AirForce’sOfficeofSpecialInvestigationsinBoston,Massachusetts;and,theDepartmentofCommerce’sBostonOfficeofExportEnforcement.U.S.AttorneyDalyandActingAssistantAttorneyGeneralMcCordalsothankedtheFBIinNewark,IthacaandSyracuse,NewYork,theU.S.CustomsandBorderProtectionServiceinNewYorkandNewark,andtheU.S.Attorney’sOfficesfortheNorthernDistrictofNewYorkandtheDistrictofNewJersey,fortheireffortsandassistanceinthismatter.ThiscaseisbeingprosecutedbyAssistantU.S.AttorneysTracyLeeDaytonandStephenB.ReynoldsoftheDistrictofConnecticut,andTrialAttorneysBrianFlemingandJulieEdelsteinoftheNationalSecurityDivision’sCounterintelligenceandExportControlSection.NationalSecurityDivision(NSD)USAO-ConnecticutDepartmentofJusticeOfficeofPublicAffairs

Singapore Man Pleads Guilty to Plot Involving Illegal Exports of Radio

Frequency Modules From the U.S. To Iran

LimYongNam,akaStevenLim,42,acitizenofSingapore,pleadedguiltytodaytoafederalchargestemmingfromhisroleinaconspiracythatallegedlycausedthousandsofradiofrequencymodulestobeillegallyexportedfromtheU.S.toIran.Atleast16ofthecomponentswerelaterfoundinunexplodedimprovisedexplosivedevices(IEDs)inIraq.TheguiltypleawasannouncedbyActingAssistantAttorneyGeneralforNationalSecurityMaryB.McCord,U.S.AttorneyChanningD.PhillipsoftheDistrictofColumbia,DirectorSarahSaldañaofU.S.ImmigrationandCustomsEnforcement(ICE),ExecutiveAssistantDirectorMichaelSteinbachoftheFBI’sNationalSecurityBranchandUnderSecretaryEricL.HirschhornoftheU.S.DepartmentofCommerce.LimwasextraditedearlierthisyearfromIndonesia,wherehehadbeendetainedsinceOctober2014inconnectionwiththeU.S.requestforextradition.HepleadedguiltytoachargeofconspiracytodefraudtheU.S.bydishonestmeans.Thechargecarriesastatutorymaximumoffiveyearsinprisonandpotentialfinancialpenalties.ThemaximumstatutorysentenceisprescribedbyCongressandisprovidedhereforinformationalpurposes.Ifconvictedofanyoffense,thesentencingofthedefendantwillbedeterminedbythecourtbasedontheadvisorySentencingGuidelinesandotherstatutoryfactors.Underfederalsentencingguidelines,thepartieshaveagreedthatLimfacesarangeof46to57monthsinprisonandafineofupto$100,000.Limremainsincustodypendinghissentencing,whichwasscheduledforXXbeforetheHonorableEmmetG.Sullivan.LimandotherswereindictedintheDistrictofColumbiainJuneof2010onchargesinvolvingtheshipmentofradiofrequencymodulesmadebyaMinnesota-basedcompany.Themoduleshaveseveralcommercialapplications,includinginwirelesslocalareanetworksconnectingprintersandcomputersinofficesettings.Thesemodulesincludeencryptioncapabilitiesandhavearangeallowingthemtotransmitdatawirelesslyasfaras40mileswhenconfiguredwithahigh-gainantenna.Thesesamemodulesalsohavepotentiallylethalapplications.Notably,during2008and2009,coalitionforcesinIraqrecoverednumerousmodulesmadebytheMinnesotafirmthathadbeenutilizedaspartoftheremotedetonationsystemforIEDs.Accordingtothepleadocumentsfiledtoday,between2001and2007,IEDswerethemajorsourceofAmericancombatcasualtiesinIraq.


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EIB World Trade H

eadlines Evolutions In Business • w

ww

.eib.com • (978) 256-0438 • P.O

. Box 4008, Chelmsford, M

A 01824

Inhisguiltyplea,LimadmittedthatbetweenAugust2007andFebruary2008,heandotherscaused6,000modulestobepurchasedandillegallyexportedfromtheMinnesota-basedcompanythroughSingapore,andlatertoIran,infiveshipments,knowingthattheexportofU.S.-origingoodstoIranwasaviolationofU.S.law.Ineachtransaction,LimandothersmademisrepresentationsandfalsestatementstotheMinnesotafirmthatSingaporewasthefinaldestinationofthegoods.AtnopointintheseriesoftransactionsdidLimoranyofhisco-conspiratorsinformthecompanythatthemodulesweredestinedforIran.Similarly,accordingtothestatementofoffense,LimandotherscausedfalsedocumentstobefiledwiththeU.S.government,inwhichtheyclaimedthatSingaporewastheultimatedestinationofthemodules.Limandhisco-conspiratorsweredirectlyawareoftherestrictionsonsendingU.S.-origingoodstoIran.ShortlyafterthemodulesarrivedinSingapore,theywerekeptinstorageatafreightforwardingcompanyuntilbeingaggregatedwithotherelectroniccomponentsandshippedtoIran.ThereisnoindicationthatLimoranyofhisco-conspiratorsevertookphysicalpossessionofthesemodulesbeforetheyreachedIranorthattheywereincorporatedintoanotherproductbeforebeingre-exportedtoIran.Accordingtothestatementofoffense,14ofthe6,000modulesthedefendantsroutedfromMinnesotatoIranwerelaterrecoveredinIraq,wherethemoduleswerebeingusedaspartofIEDremotedetonationsystems.ThisinvestigationwasjointlyconductedbyICEHomelandSecurityInvestigations(HSI)SpecialAgentsinBostonandLosAngeles;FBIagentsinMinneapolis;andDepartmentofCommerce,BureauofIndustryandSecurityagentsinChicagoandBoston.SubstantialassistancewasprovidedbytheU.S.DepartmentofDefense,U.S.CustomsandBorderProtection,theStateDepartment’sDirectorateofDefenseTradeControls,theTreasuryDepartment’sOfficeofForeignAssetsControl,andtheOfficeofInternationalAffairsintheJusticeDepartment’sCriminalDivision,theJusticeDepartmentAttachéinthePhilippinesandtheFBIandHSIAttachésinSingaporeandJakarta.U.S.lawenforcementauthoritiesthankedthegovernmentsofSingaporeandIndonesiaforthesubstantialassistancethatwasprovidedintheinvestigationofthismatter.TheprosecutionisbeinghandledbyAssistantU.S.AttorneyAriRedbordoftheDistrictofColumbiaandTrialAttorneyJulieEdelsteinoftheNationalSecurityDivision’sCounterintelligenceandExportControlSection.

Textron Begins On-Water Testing for CUSV

TextronSystemsUnmannedSystems,aTextronInc.(NYSE:TXT)business,announcedtodaythatitbeganon-watertestingforthefourth-generationCommonUnmannedSurfaceVehicle(CUSV™),supportingtheU.S.Navy’sUnmannedInfluenceSweepSystem(UISS)program.TextronSystemscompletedthedesign,buildandcomponenttestphasesoftheUISSprograminNovember2016.Followingcomponenttesting,TextronSystemsbeganthesystemslevelintegrationandtest(I&T)phase,culminatingindocksideandon-watertestinginLakePontchartrainnearitsMarine&LandSystemsfacilityinLouisiana.TheI&Tphaseincludesfunctionaltestingofthesystem’sintegratedgenerators,engines,datalinks,aswellason-watermaneuverabilitytesting.TextronSystemswillmoveintobuilders’trialsuponcompletionofI&TandthenformaltestingtovalidatesystemfunctionalitywiththeU.S.Navylaterthisyear.WebNotice:TheDirectorateofDefenseTradeControls(DDTC)iscurrentlyintheprocessofmodernizingitsITsystems.Duringthistimeperiod,weanticipatetheremaybedelaysinresponsetimesandtimetoresolveITrelatedincidentsandrequests.Weapologizeforanyinconvenience,andappreciateyourpatiencewhileweworktoimproveDDTCservices.Ifyouneedassistance,pleasecontacttheDDTCServiceDeskat(202)663-2838,[email protected](06.28.16)

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