The U.S. Justice Department said an arrest was made in New York this week of a Chinese businessman who attempted to obtain and illegally export military-grade carbon fiber to China without a license.
The U.S. Justice Department said an arrest was made in New York this week of a Chinese businessman who attempted to obtain and illegally export military-grade carbon fiber to China without a license.
Fuyi “Frank” Sun has been charged with one count of attempting to violate the International Emergency Economic Powers Act (IEEPA), one count of conspiracy to violate IEEPA and one count of attempting to smuggle goods from the United States.
He was arrested after traveling to the United States to meet with undercover agents in an effort to obtain the specialized fiber which, due to its military and aerospace applications, requires a U.S. export license for export to China.
During his meetings with the agents on April 11-12, Sun “repeatedly suggested that the Chinese military was the ultimate end-user for the M60 carbon fiber he sought to acquire; claimed to have personally worked in the Chinese missile program; and asserted that he maintained a close relationship with the Chinese military, had a sophisticated understanding of the Chinese military’s need for carbon fiber and suggested that he would be supplying the M60 Carbon Fiber to the Chinese military or to institutions closely associated with it,” the Justice Department said.
On April 12, Sun agreed to buy two cases of the carbon fiber from the agents and paid $23,000 in cash. He paid an additional $2,000 to the agents as compensation for the risk he believed they were taking to illegally export the carbon fiber to China without a license.
Attempting to violate IEEPA and conspiracy to violate IEEPA each carry a maximum sentence of 20 years in prison. Sun will be tried in the Southern District Court of New York.
U.S. arrests Chinese businessman for attempted illegal export
