Forwarded by: William Knowles <wkat_private> http://ap.tbo.com/ap/breaking/MGAJ2GYKZQC.html By Christopher Newton Associated Press Writer August 29, 2001 WASHINGTON (AP) - Two men have been arrested and accused of scheming to smuggle military encryption technology to China, the Customs Service said Wednesday. The technology, two devices known as KIV-7HS units, are used to encode classified government communications. "The technology that these individuals were attempting to export to China is among the most sensitive items on the U.S. munitions list," said Allan Doody, the U.S. Customs Service special agent in charge in Baltimore. Doody said sale of the technology must be approved by the National Security Agency. Customs agents have arrested Eugene Hsu of Blue Springs, Mo., and David Yang of Temple City, Calif. Carlson Ho, also charged with attempting to smuggle the technology, is in Singapore and has not been arrested. Ho is affiliated with the Singapore-based Wei Soon Loong Pvt. Ltd., which intended to buy the technology, according to a federal affidavit. The maximum sentence for smuggling sensitive technology is 10 years in prison and a $1 million fine for each violation. Wei Soon Loong, the Singapore company, did not immediately return telephone calls by The Associated Press. Customs agents discovered the alleged scheme when Hsu contacted representatives of the company Mykotronx, a private defense contractor based in Maryland. Hsu asked about the encryption technology and wanted a price quote. Company executives reported Hsu's telephone call to Customs agents in Baltimore. Undercover agents replaced Mykotronx representatives in later telephone conversations with Hsu. Hsu made clear that he understood the technology could not legally be sold to China, according to the Customs Service. In a taped conversation in May, an undercover agent told Hsu, "I can make a domestic sale to you, and then you can get it out however you want. But that would not be legal. It would be illegal, ... and I just want your assurance it's not going to come back to burn me." Hsu replied, "Everyone will keep their mouths shut." The Customs Service says that Hsu contacted David Yang to ship the freight, and Yang was informed that it was an illegal shipment. Yang told undercover agents that he'd been doing this businesses for 20 years and that he knew "how to handle these types of problems." *==============================================================* "Communications without intelligence is noise; Intelligence without communications is irrelevant." Gen Alfred. M. Gray, USMC ================================================================ C4I.org - Computer Security, & Intelligence - http://www.c4i.org *==============================================================* - ISN is currently hosted by Attrition.org To unsubscribe email majordomoat_private with 'unsubscribe isn' in the BODY of the mail.
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