Zhang Indictment

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EMN:SDD F. #2012R01387

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK

- - - -X

r# FILED

IN CLERK'S OFFICE U.S. DISTRICT COURT E.D.N.Y

* OCT 1 8 2012 * BROOKLYN OFFICE

UNITED STATES OF AMERICA

eli D I C T M E N T 0 1.2- 666 - against -

MING SUAN ZHANG,

Defendant.

THE GRAND JURY CHARGES:

(T. 18, U.S.C., §§ 2, 981 (a) (1) (C) and 3SS1 et ~.; T. SO, U.S.C., §§ 1702, 170S(a) and 170S(c); T. 28, U.S.C.,

----X § 2461(c); T. 21, U.S.C., § 8S3(p); T. 1S, C.F.R., § 764.21 .

. · coG"N, J. INTRODUCTION

At all times relevant to this

1. The export of so-called "commerce controlled"

items was regulated by the United States Department of Commerce

("DOC"). Under the International Emergency Economic Powers Act

("IEEPA"), SO U.S.C. §§ 1701 et seq., the President of the United

States was granted the authority to deal with unusual and

extraordinary threats to the national security, foreign policy,

and economy of the United States. Under IEEPA, the President

could declare a national emergency through Executive Orders that

had the full force and effect of law.

2. On August 17, 2001, under the authority of IEEPA,

the President issued Executive Order 13222, which declared a

national emergency with respect to the unrestricted access of

Case 1:12-cr-00666-NGG Document 9 Filed 10/18/12 of 7 PageID #: 34

foreign parties to United States goods and technologies and

extended the Export Administration Regulations (the "EAR"), 15

C.F.R. §§ 730-774. Through the EAR, the DOC imposed license or

other requirements before an item subject to the EAR could be

lawfully exported from the United States or lawfully re-exported

from another country. These items were listed on the commerce

control list, or "CCL," published at 15 C.F.R. § 774, Supp. 1.

The President issued annual Executive Notices extending the

national emergency declared in Executive Order 13222 from the

time period covered by that Executive Order through the time of

this Indictment. See 77 Fed. Reg. 49,699 (Aug. 15, 2012).

3. Pursuant to its authority derived from IEEPA, the

DOC reviewed and controlled the export of certain goods and

technology from the United States to foreign countries. In

particular, the DOC placed restrictions on the export of goods

and technology that it determined could make a significant

contribution to the military potential or nuclear proliferation

of other nations or that could be detrimental to the foreign

policy or national security of the United States. Under IEEPA

and the EAR, it was a crime to willfully export, attempt to

export, conspire to export or aid and abet the export, from the

United States any item listed on the CCL, and therefore subject

to the EAR, without first obtaining the license from the DOC.

See 50 U.S.C. § 1705(c); 15 C.F.R. § 764.2.

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4. Certain types of carbon fiber were listed on the

CCL, and therefore subject to the EAR's licensing requirements.

See 15 C.F.R. § 774, Supp. 1. Carbon fiber is a commodity,

subject to U.S. government license regulations, which has both

military and non-military uses. Carbon fiber composites are

ideally suited to applications where strength, stiffness, lower

weight and outstanding fatigue characteristics are critical

requirements. These composites also can be used in applications

where high temperature, chemical inertness and high damping are

important.

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5. The two main applications of carbon fiber are in

specialized technology, which includes aerospace and nuclear

engineering, and in general engineering and transportation, which

includes engineering components such as bearings, gears, cams,

fan blades and automobile bodies. In addition, certain carbon

fiber based composites are used in military aircraft. Toray type

M60JB-3000-50B carbon fiber was an extremely high-grade product,

used primarily in aerospace and military applications.

6. Toray type M60JB-3000-50B carbon fiber was under

the licensing jurisdiction of the DOC, and a license was required

to export that commodity to China. Toray type M60JB-3000-50B

carbon fiber was also controlled under Export Control

Classification Number 1C210.a for nuclear non-proliferation and

anti-terrorism reasons.


ATTEMPT TO VIOLATE THE IEEPA

7. The allegations contained in paragraphs one

through six are realleged and incorporated as if fully set forth

in this paragraph.

8. On or about and between July 18, 2012 and

September 14, 2012, both dates being approximate and inclusive,

within the Eastern District of New York and elsewhere, the

defendant MING SUAN ZHANG, together with others, did knowingly,

intentionally and willfully attempt to export from the United

States to China items under the jurisdiction of the DOC, to wit:

one or more spools of Toray type M60JB-3000-SOB carbon fiber,

without first having obtained the required license from the DOC.

4

(Title 50, United States Code, Sections 1702, 1705(a)

and 1705(c); Title 15, Code of Federal Regulations, Section

764.2; Title 18, United States Code, Sections 2 and 3551 et seq.)

CRIMINAL FORFEITURE ALLEGATION

9. The United States hereby gives notice to the

defendant that, upon his conviction of the charged offense, the

government will seek forfeiture in accordance with Title 18,

United States Code, Section 981(a) (1) (C) and Title 28, United

States Code, Section 2461(c), which require any person convicted

of any such offense to forfeit any and all property, real or

personal, which constitutes or is derived from proceeds traceable

to a violation of such offense, including but not limited to


approximately $1,000 in United States currency seized from the

defendant on or about September 14, 2012.

10. If any of the above-described forfeitable

property, as a result of any act or omission of the defendant:

a. cannot be located upon the exercise of due

diligence;

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b. has been transferred or sold to, or deposited

with, a third party;

c. has been placed beyond the jurisdiction of

the court;

d. has been substantially diminished in value;

or

e. has been commingled with other property which

cannot be divided without difficulty;

it is the intent of the United States, pursuant to Title 21,

United States Code, Section 853(p), as incorporated by Title 28,

United States Code, Section 246l(c), to seek forfeiture of any


other property of the defendant up to the value of the

forfeitable property described in this forfeiture allegation.

(Title 28, United States Code, Section 2461(c); Title

18, United States Code, Section 981(a) (1) (C); Title 21, United

States Code, Section 853(p))

LORETTA E. LYNCH UNITED STATES ATTORNEY EASTERN DISTRICT OF NEW YORK

A TRUE BILL

~~ FORE PERSON

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)

)

F#2012R01387

FORM DBD-34

JUN. 85

No.

UNITED STATES DISTRICT COURT

EASTERN District of NEW YORK

CRIMINAL Division

THE UNITED STATES OF AMERICA vs.

MING SUAN ZHANG,

Defendant.

INDICTMENT ( T. 18, U.S.C., §§ 2, 981 (a)(!) (C) and 3551 et~ .;

T. 50, U.S.C., §§ 1702, 1705 (a) and 1705 (c); T. 28, U.S.C., § 2461 (c); T. 21, U.S.C., § 853 (p); T. 15, C.P.R.,§ 764.2)

Atruebill. t.l•/ ----jJtiL ft2/l! _ J!lJ _,['al}---------------Foreman

Filed in open court this _________________ day,

of_________ A.D. 2009

Clerk

Bail,$ __________ _

SETH DUCHARME, AUSA; (718) 254-6021


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'-" INFORMATI00ft:T12 -UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK

666

Title of Case: United States v. MING SUAN ZHANG rJ FILED

Related Magistrate Docket Number(s) None ( )

IN CLERK'S OFFICE U.S. DISTRICT COURT E.D.N.Y

* OCT 1 8 Wt2 * Arrest Date:

Nature of offense(s): COGAN, J. BROOKLYN OFFICE

Felony Misdemeanor D

Related Civil or Criminal Cases- Title and Docket No(s). (Pursuant to Rule 50.3 of the Local E.D.N.Y. Division of Business Rules):--:::-------,--.-,...,,--------

~~ W1v:

Projected Length of Trial: Less than 6 weeks More than 6 weeks

(X) ( )

1/·iAA) County in which crime was allegedly committed: _ ___:H_:__l__.L ____ .(Pursuant to Rule 50.l(d) of the Local E.D.N.Y. Division of Business Rules)

Has this indictment been ordered sealed?

Have arrest warrants been ordered?

Is a capital count included in the indictment?

By:

()Yes (X) No

()Yes (X) No

()Yes(X)No

LORETTA E. LYNCH

UNI~TA-v=RNEY

SKfH DUCHARME, AUSA (718) 254-6021

Rev. 10/01103

Case 1:12-cr-00666-NGG Document 9-1 Filed 10/18/12 Page 1 of 1 PageID #: 41

Zhang Indictment

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