Exporter Indicted on Conspiracy to Export Microwave Amplifer Products From U.S. to China

The U.S. Attorney for the Northern District of California today announced that a grand jury in San Jose, California indicted Mr. Fu-Tain Lu as well as two companies Mr. Lu founded, Fushine Technology, Inc., located in the San Jose area and Shenzen, China-based Everjet Science and Technology Corporation, conspired to export microwave amplifier products to China without obtaining the required licenses or other approvals from the U.S. Department of Commerce. Mr. Lu was also charged with two counts of making false statements to a government agency. Mr. Lu was arrested earlier this week at San Francisco International Airport after disembarking a flight.

According to Everjet's website, the company specializes in "providing RF and Microwave components, test instrumentations, and Satellite communication systems for markets in HongKong and China."

Microwave amplifers and microwave assemblies/modules with certain specifications are classified in ECCN 3A001.b.4 on the Commerce Control List and are controlled for National Security (NS Column 2) and Anti-Terrorism (AT) reasons. Products subject to NS-2 controls require an export license from the Bureau of Industry and Security prior to be exported to China.

The indictment alleges that the items Fushine shipped and attempted to ship products controlled for national security reasons to China without the required export licenses. The indictment quotes an internal company e-mail in which an Everjet employee told a Fushine employee, “Since these products are a little bit sensitive, in case the maker ask [sic] you where the location of the end user is, please do not mention it is in China.” The indictment also quotes from another e-mail in which Lu advises a subordinate to pretend that the intended end-user for an item is in Singapore rather than China.