Iranian weapons program: Exporter arrested, charged with exporting missile parts

The complaint charges defendant Chen with exporting and attempting to export U.S. commodities to Iran in violation of the International Emergency Economic Powers Act and the United States Iran Embargo (the Embargo). The Embargo prohibits the exportation from the U.S. to Iran of any goods, technology, or services, with limited exceptions, unless authorized by the Department of Treasury, Office of Foreign Assets Controls. The Embargo is enforced through the IEEPA.

According to the affidavit filed in support of the criminal complaint, Chen facilitated the purchase and export of various dual use goods from the U.S. to Iran by way of Taiwan and Hong Kong. “Dual use” goods are goods and technologies that have commercial application, but also could make a significant contribution to the military or nuclear potential of other nations and could be detrimental to the foreign policy or national security of the United States.

U.S. Attorney Jeffrey H. Sloman stated, “Keeping our nation safe is the number one priority of the Department of Justice. To that end, we will vigorously investigate and prosecute individuals who export items to prohibited entities such as the Islamic Republic of Iran. Iran has been designated a state sponsor of terrorism and remains subject to United States, United Nations and European Union economic sanctions and export controls because of its continued involvement in terrorism and its nuclear weapons ambitions. The dual use items allegedly exported in this case could easily be used in missile development and other military components. Such conduct poses a serious threat to our national security, and will not be tolerated.”

"Today's arrest is the result of ongoing cooperation between government agencies to combat the illegal transhipment of U.S.-origin items to Iran," said Michael Johnson, Special Agent in Charge, U.S. Department of Commerce's Miami Office of Export Enforcement. "We will continue to work together to pursue willful violators no matter where they set up their networks and protect our national security.”

The complaint alleges that Chen caused dual use goods to be exported from the U.S., including P200 Turbine Engines and spare parts, MIL-S-8516 Sealing Compound, Glass to Metal Pin Seals, and Circular Hermetic Connectors (Model MIL-C-81703). P200 Turbine Engines are designed for use as model airplane engines but can also be used to operate unmanned aerial vehicles and military target drones. MIL-S-8516 Sealing Compound is an accelerated, synthetic, rubber sealing compound used for sealing low-voltage electrical connectors, wiring, and other electrical equipment against moisture and corrosion.

This particular sealant is designed to military specifications and has numerous applications in military, aerospace, and automotive industries. It is also considered a hazardous material for shipping purposes. Glass to Metal Pin Seals are commonly used to seal a conductor pin in a metal feed thru in an electrical device. These have many applications, such as vacuum components, sensor or transducer housings, feedthroughs for harsh environments, and battery headers.

The pin seals exported by Chen were designed with the nickel alloy known as “Alloy 52" and have dual applications in aerospace industries, thermal imaging devices, chemical agent monitors, and weapons systems. Circular Hermetic Connectors are designed to facilitate the flow of electrical current across two devices and can be mechanically coupled to, or uncoupled from, another connection. These connectors are designed to military specifications and have aerospace, defense, industrial, and petrochemical applications.