Virginia Physicist Sentenced to 51 Months in Prison for Illegally Exporting Space...

Virginia Physicist Sentenced to 51 Months in Prison for Illegally Exporting
Space Launch Data to China and Offering Bribes to Chinese Officials

WASHINGTON, April 7 /PRNewswire-USNewswire/ -- A physicist in Newport News,
Va., was sentenced to 51 months in prison today for illegally exporting space
launch technical data and defense services to the People's Republic of China
(PRC) and offering bribes to Chinese government officials.

The sentence was announced today by Dana Boente, Acting U.S. Attorney for the
Eastern District of Virginia; David Kris, Assistant Attorney General for
National Security; Rita M. Glavin, Acting Assistant Attorney General of the
Criminal Division; Arthur M. Cummings, II, Executive Assistant Director, FBI
National Security Branch; and Alex J. Turner, Special Agent-in-Charge, FBI
Norfolk Division.

Shu Quan-Sheng (Shu), 68, a native of China, naturalized U.S. citizen and
Ph.D. physicist, was sentenced by Judge Henry C. Morgan, Jr. in U.S. District
Court for the Eastern District of Virginia, Norfolk Division. Shu has already
forfeited $386,740 to the federal government in connection with the case.

Shu is the President, Secretary and Treasurer of AMAC International Inc.
(AMAC), a high-tech company that is based in Newport News and has offices in
Beijing. AMAC performs research through grants funded by the Small Business
Research program on behalf of the Department of Energy and the National
Aeronautics and Space Administration (NASA).

On Nov. 17, 2008, Shu pleaded guilty to a three-count criminal information.
Count one alleges that from January 2003 through October 2007, Shu violated
the Arms Export Control Act by willfully exporting a defense service from the
United States to the PRC without first obtaining the required export license
or written approval from the State Department.

Specifically, Shu provided the PRC with assistance in the design and
development of a cryogenic fueling system for space launch vehicles to be used
at the heavy payload launch facility located in the southern island province
of Hainan, PRC. The space launch facility at Hainan will house
liquid-propelled heavy payload launch vehicles designed to send space stations
and satellites into orbit, as well as provide support for manned space flight
and future lunar missions, according to a criminal complaint filed in the
case. Among those PRC government entities involved in the Hainan facility are
the People's Liberation Army's General Armaments Department and the 101st
Research Institute (101 Institute), which is one of many research institutes
that make up the China Academy of Launch Vehicle Technology, as overseen by
the Commission of Science Technology and Industry for the National Defense.

Count two of the criminal information alleges that on Dec. 20, 2003, Shu
violated the Arms Export Control Act by willfully exporting a defense article
to the PRC without first obtaining the required export license or written
approval from the State Department. Specifically, Shu illegally exported to
the PRC controlled military technical data contained in a document entitled
"Commercial Information, Technical Proposal and Budgetary Officer -- Design,
Supply, Engineering, Fabrication, Testing & Commissioning of 100m3 Liquid
Hydrogen Tank and Various Special Cryogenic Pumps, Valves, Filters and
Instruments."

Count three of the criminal information alleges that Shu offered, paid,
promised and authorized the payment of bribes to Chinese government officials
to influence their decisions and secure an improper advantage, in violation of
the Foreign Corrupt Practices Act. Specifically, Shu, acting on behalf of his
company, AMAC, and a French company he represented, offered to pay money to
foreign officials of the PRC's 101 Institute to obtain a contract for the
development of a 600 liter per hour liquid hydrogen tank system, according to
the information.

The criminal information indicates that Shu offered money on three occasions
to three PRC officials with the 101 Institute to secure the contract. In
February 2006, he offered "percentage points" worth approximately $56,800. In
April 2006, he offered "percentage points" worth some $56,800, and in May
2006, he offered "percentage points" worth approximately $75,700, for a total
of $189,300, according to the criminal information. In January 2007, the $4
million hydrogen liquefier project was awarded to the French company that Shu
represented.

This investigation was conducted by the FBI, with assistance from U.S.
Immigration and Customs Enforcement and the U.S. Department of Commerce,
Office of Export Enforcement.

The prosecution is being handled Assistant U.S. Attorney Alan M. Salsbury from
the U.S. Attorney's Office for the Eastern District of Virginia and Assistant
Chief Robertson Park from the Criminal Division's Fraud Section. The
Counterespionage Section of the Justice Department's National Security
Division provided critical assistance.

SOURCE U.S. Department of Justice

U.S. Department of Justice Office of Public Affairs, +1-202-514-2007,
+1-202-514-1888 (TDD)