Chinese man convicted of encryption equipment smuggling attempt

Chi Tong Kuok of Macau, China, was convicted on four counts Tuesday, among them violating US export laws, smuggling, and money laundering. The conviction stems from an investigation and arrest in June 2009 when undercover US Customs agents arrested the Chinese national in Atlanta’s Hartsfield International Airport for attempting to sell handheld, multiband radios used by the US military and other intelligence agencies.

In addition to the radios, Reuters reports that Kuok also sought to purchase a device used by the US military and NATO that loads encryption software into communications equipment. US law prohibits the sale of these devices abroad without prior consent from the US State Department.

Kuok orginally contacted a British company to inquire about purchasing the equipment, typically used for secure communications in military aircraft. However, the company referred him to an undercover US Customs agent, who then began a two-year negotiating process with Kuok that eventually led to his arrest.

“This conviction underscores the threat posed by illicit efforts to obtain sensitive US technology and the need for continued vigilance against such schemes”, said David Kris, Assistant Attorney General for National Security. “The military encryption technology at the heart of this conspiracy is controlled for good reason”.

Sentencing for Kuok has been scheduled for August 23, where he could face up to 45 years in prison.
 

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