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Man Charged in Plot to Export Restricted Technology to India

July 31, 2007

The Justice Department alleges the international sales manager of a high-technology firm is guilty of five counts of unlawful exports to a prohibited entity. The facility was removed from the prohibited entity list in 2001.


WASHINGTON /PRNewswire-USNewswire/ -- A California man was charged with illegally exporting sensitive technology to a business in India that was restricted from receiving such technology without a license, Assistant Attorney General for National Security Kenneth L. Wainstein and U.S. Attorney for the Central District of California George S. Cardona announced.

Samuel Shangteh Peng, 56, of Yorba Linda, CA, was named in criminal information filed in the U.S. District Court in Santa Ana, CA. The information alleges five counts of unlawful exports to a prohibited entity. Peng has agreed to plead guilty to the charges, each of which carries a statutory maximum penalty of 10 years in federal prison.

"The defendant circumvented our export laws and put sophisticated equipment in the hands of a foreign company that was listed as an end-user of concern for proliferation reasons. With this prosecution, the defendant will no longer be able to make a profit at the expense of our national security," said Assistant Attorney General Wainstein.

Peng was an international sales manager and was responsible for all exports at Endevco Corp., an Orange County, CA, company that manufactures electronic sensors, vibration testing equipment, and other technology with both civilian and military applications. The information alleges that Peng illegally exported a variety of sensitive items in 1999 and 2000 from the U.S. to Hindustan Aeronautics Limited (HAL), Engine Division, in Bangalore, India.

In 1998, the U.S. Department of Commerce designated this facility in India as an end-user of concern for proliferation reasons. As such, it was unlawful for anyone in the U.S. to export certain goods or technology of U.S. origin from the U.S. to HAL without authorization and an export license from the Department of Commerce. The facility was removed from the prohibited entity list in 2001.

During 1999 and 2000, Peng allegedly exported to HAL vibration amplifiers, cable assemblies and vibration processor units, which can be used in military and civilian aircraft to extract vibration information from engines and to simulate output for calibrating, servicing, and testing that equipment. According to the criminal information, at no time did Peng have the required export license to export vibration amplifiers, cable assemblies, and vibration processor units from the U.S. to HAL.

Peng will be summoned to appear for an arraignment in U.S. District Court in Santa Ana, CA, on August 20, 2007.

This case is being investigated by the U.S. Department of Commerce, U.S. Immigration and Customs Enforcement, and U.S. Naval Criminal Investigative Service. The case is being prosecuted by Assistant United States Attorney Todd T. Tristan of the Santa Ana Branch Office of the U.S. Attorney's Office for the Central District of California.


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