LOS ANGELES – A Pomona woman was arrested this morning on federal charges that accuse her of conspiring to procure and illegally export sensitive space communications technology to her native China.
Si Chen, also known as Cathy Chen, 32, was arraigned this afternoon in United States District Court on charges contained in an indictment that was returned by a federal grand jury on April 27 and was unsealed today after her arrest.
The 14-count indictment accuses Chen of violating the International Emergency Economic Powers Act (IEEPA), which controls and restricts the export of certain goods and technology from the United States to foreign nations. Chen is also charged with conspiracy, money laundering, making false statements on an immigration application, and using a forged passport.
According to the indictment, from March 2013 to December 2015, Chen purchased and smuggled sensitive items to China without obtaining licenses from the U.S. Department of Commerce that are required under IEEPA. Those items allegedly included components commonly used in military communications “jammers” from which Chen removed the export-control warning stickers prior to shipping. Additionally, Chen is suspected of smuggling communications devices worth more than $100,000 that are commonly used in space communications applications. On the shipping paperwork Chen falsely valued the items at $500. The indictment further describes how Chen received payments for the illegally exported products through an account held at a bank in China by a family member.
Chen was taken into custody this morning without incident by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the U.S. Department of Commerce’s Office of Export Enforcement (OEE); and the Defense Criminal Investigative Service (DCIS).
In addition to the export violations, Chen is also charged with employing several aliases and using a forged passport in an effort to conceal her alleged smuggling activities on behalf of unnamed co-conspirators in China. The indictment alleges the defendant used a Chinese passport bearing her photo and a false name – “Chunping Ji” – to rent an office in Pomona where she took delivery of the export-controlled items. After receiving the goods, the indictment alleges Chen shipped the devices to Hong Kong in parcels that bore her false name, along with false product descriptions and monetary values, all done in an effort to avoid attracting law enforcement scrutiny.
Under IEEPA, it is crime to willfully export or attempt to export items that appear on the Commerce Control List without a license from the U.S. Department of Commerce. These are items authorities have determined could be detrimental to regional stability and national security.
If convicted of the 14 charges in the indictment, Chen would face a statutory maximum penalty of 150 years in prison.
