First Arrests, Charges from Disruptive Technology Strike Force
The Department of Justice (DOJ) announced the first arrests and criminal charges connected with the recently launched Disruptive Technology Strike Force.
The strike force is a multi-agency effort, co-led by DOJ and the Department of Commerce, with the aim of preventing sensitive U.S. technology from falling into the hands of hostile nation states like Russia, China, and Iran. U.S. officials say those nations are seeking such technology to further their authoritarian regimes and commit human rights abuses.
DOJ says the initial probes resulted in the arrest of four people and criminal charges in five cases from five different U.S. Attorney’s Offices.
“We will not tolerate those who would violate U.S. laws to allow authoritarian regimes and other hostile nations to use advanced technology to threaten U.S. national security and undermine democratic values around the world,” said Assistant Attorney General Matthew G. Olsen of the National Security Division.
Russia
In the Eastern District of New York, a Greek national was arrested for allegedly acquiring more than ten different types of sensitive technologies on behalf of the Russian government. The suspect allegedly served as procurement agent for two Russian Specially Designated Nationals (SDNs) working on behalf of Russia’s intelligence services. The suspect was arrested in Paris and remains in custody pending extradition proceedings.
In a separate case in the District of Arizona, two Russian nationals were arrested. They are accused of being involved in a procurement scheme to supply multiple Russian commercial airline companies with export-controlled parts and components.
China
Two cases charge former software engineers with stealing software and hardware source code from U.S. tech companies to market it to Chinese competitors.
In the Central District of California, a senior software engineer was arrested for allegedly stealing source code used in “smart” auto manufacturing equipment. That code was allegedly marketed to multiple Chinese companies. The suspect is currently in federal custody.
In the Northern District of California, a former Apple engineer and People’s Republic of China citizen is accused of stealing thousands of documents with source code for software and hardware related to Apple’s autonomous vehicle technology. The suspect fled to China and is believed to be working at Chinese autonomous vehicle competitor.
Iran
In the last case in the Southern District of New York, a Chinese national is charged in a scheme to supply Iran with materials used in weapons of mass district. Prosecutors say the suspect was part of scheme to use his employer to conduct transactions with a U.S. financial institution, to benefit an Iranian entity. It was all allegedly part of an effort to provide isostatic graphite, used the production of weapons of mass destruction, to Iran. The suspect is currently at-large in China.
“The Strike Force actions announced today reflect the core mission of our Export Enforcement team — keeping our country’s most sensitive technologies out of the world’s most dangerous hands,” said Matthew S, Axelrod, Assistant Secretary for Export Enforcement at the Department of Commerce.