Two Arrested For Trying To Sell Encryption To China
U.S. Customs Service agents have arrested two men for allegedly attempting to export military-grade encryption technology to China.
Authorities on Tuesday arrested Eugene You Tsai Hsu, of Blue Springs, Mo., and David Tzu Wvi Yang, of Temple City, Calif., accusing the two of plotting to export an encryption technology designed for use exclusively by the U.S. government.
A customs spokesman would not confirm whether the KIV-7HS encryption unit in question has ever been used outside of the U.S. government or exported to any other nations, saying only that the communications encryption device cannot be legally exported from the United States without permission from the State Department.
According to an affidavit filed in federal court, Hsu contacted Columbia, Md.-based Mykotronx Inc. to find out the price of the encryption technology. A Mykotronx security officer then contacted U.S. Customs agents in Baltimore, who subsequently launched an 15-month undercover investigation together with the Defense Department's Defense Security Service.
The Customs Service claims Yang and Hsu conspired to obtain the encryption device and ship it to Charlson Ho, a man reportedly affiliated with Wei Soon Loong Private LTD in Singapore.
If convicted, both men face a maximum of 10 years in jail or a $1 million fine per violation of the Arms Export Control Act. Ho also faces charges that he laundered money to conceal the source of payment for the technology.
