Attacks/Breaches
11/18/2008
01:57 PM
Connect Directly
RSS
E-Mail
50%
50%

Chinese-Born Scientist Pleads Guilty To Tech Espionage

Quan-Sheng Shu, who was also charged with illegal arms exports, faces up to 10 years in prison.

A Chinese-born scientist working in Virginia has pleaded guilty to selling U.S. technology and military secrets for rocket propulsion to China, though news service XFN-Asia reported that the Chinese government insists the charges were "completely fabricated."

Quan-Sheng Shu pleaded guilty Monday in U.S. District Court in Norfolk to charges of bribery in violation of the Foreign Corrupt Practices Act and breaking the federal Arms Export Control Act.

The U.S. Department of Justice said the physicist in Newport News exported technical space launch data and defense services to the People's Republic of China and offered bribes to Chinese government officials.

Shu, a naturalized U.S. citizen, exported defense services from January 2003 through October 2007 by helping China design and develop a cryogenic fueling system for space launch vehicles in Hainan, China, U.S. prosecutors said in an indictment. China plans to use the facility to launch space stations, satellites, manned space flights, and lunar missions, according to the complaint. The People's Liberation Army's General Armaments Department and the 101st Research Institute, which is overseen by China's Industry for the National Defense, run the facility.

The U.S. government also claimed that Shu illegally exported controlled military data 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," on December 20, 2003.

Finally, the U.S. government also charged Shu with using his U.S. company, AMAC, and a French company he represented, to offer money to Chinese government officials for a contract for the development of a 600 liter per hour liquid hydrogen tank system. The complaint states that he offered "percentage points" worth about $56,800 in February and April 2006. In May 2006, he offered another $75,700 in points, bringing the total to $189,300, according to the complaint.

In January 2007, the French company that Shu represented won the $4 million hydrogen liquefier project.

Shu, 68, will be sentenced April 6, 2009. He faces a maximum sentence of 10 years in prison and a fine of $1,000,000 for each violation of the Arms Export Control Act, and a possible maximum sentence of five years in prison and a fine of $250,000 or twice the gross gain for violating the Foreign Corrupt Practices Act.

Comment  | 
Print  | 
More Insights
Register for Dark Reading Newsletters
Partner Perspectives
What's This?
In a digital world inundated with advanced security threats, Intel Security seeks to transform how we live and work to keep our information secure. Through hardware and software development, Intel Security delivers robust solutions that integrate security into every layer of every digital device. In combining the security expertise of McAfee with the innovation, performance, and trust of Intel, this vision becomes a reality.

As we rely on technology to enhance our everyday and business life, we must too consider the security of the intellectual property and confidential data that is housed on these devices. As we increase the number of devices we use, we increase the number of gateways and opportunity for security threats. Intel Security takes the “security connected” approach to ensure that every device is secure, and that all security solutions are seamlessly integrated.
Featured Writers
White Papers
Cartoon
Current Issue
Dark Reading's October Tech Digest
Fast data analysis can stymie attacks and strengthen enterprise security. Does your team have the data smarts?
Flash Poll
Video
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2014-7877
Published: 2014-10-30
Unspecified vulnerability in the kernel in HP HP-UX B.11.31 allows local users to cause a denial of service via unknown vectors.

CVE-2014-3051
Published: 2014-10-29
The Internet Service Monitor (ISM) agent in IBM Tivoli Composite Application Manager (ITCAM) for Transactions 7.1 and 7.2 before 7.2.0.3 IF28, 7.3 before 7.3.0.1 IF30, and 7.4 before 7.4.0.0 IF18 does not verify X.509 certificates from SSL servers, which allows man-in-the-middle attackers to spoof s...

CVE-2014-3668
Published: 2014-10-29
Buffer overflow in the date_from_ISO8601 function in the mkgmtime implementation in libxmlrpc/xmlrpc.c in the XMLRPC extension in PHP before 5.4.34, 5.5.x before 5.5.18, and 5.6.x before 5.6.2 allows remote attackers to cause a denial of service (application crash) via (1) a crafted first argument t...

CVE-2014-3669
Published: 2014-10-29
Integer overflow in the object_custom function in ext/standard/var_unserializer.c in PHP before 5.4.34, 5.5.x before 5.5.18, and 5.6.x before 5.6.2 allows remote attackers to cause a denial of service (application crash) or possibly execute arbitrary code via an argument to the unserialize function ...

CVE-2014-3670
Published: 2014-10-29
The exif_ifd_make_value function in exif.c in the EXIF extension in PHP before 5.4.34, 5.5.x before 5.5.18, and 5.6.x before 5.6.2 operates on floating-point arrays incorrectly, which allows remote attackers to cause a denial of service (heap memory corruption and application crash) or possibly exec...

Best of the Web
Dark Reading Radio
Archived Dark Reading Radio
Follow Dark Reading editors into the field as they talk with noted experts from the security world.