Attacks/Breaches
11/18/2008
01:57 PM
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
Comments
Newest First  |  Oldest First  |  Threaded View
Equifax CIO, CSO Step Down
Dark Reading Staff 9/15/2017
1.9 Billion Data Records Exposed in First Half of 2017
Kelly Jackson Higgins, Executive Editor at Dark Reading,  9/20/2017
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Write a Caption, Win a Starbucks Card! Click Here
Latest Comment: Jan, check this out! I found an unhackable PC.
Current Issue
Security Vulnerabilities: The Next Wave
Just when you thought it was safe, researchers have unveiled a new round of IT security flaws. Is your enterprise ready?
Flash Poll
[Strategic Security Report] How Enterprises Are Attacking the IT Security Problem
[Strategic Security Report] How Enterprises Are Attacking the IT Security Problem
Enterprises are spending more of their IT budgets on cybersecurity technology. How do your organization's security plans and strategies compare to what others are doing? Here's an in-depth look.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2017-0290
Published: 2017-05-09
NScript in mpengine in Microsoft Malware Protection Engine with Engine Version before 1.1.13704.0, as used in Windows Defender and other products, allows remote attackers to execute arbitrary code or cause a denial of service (type confusion and application crash) via crafted JavaScript code within ...

CVE-2016-10369
Published: 2017-05-08
unixsocket.c in lxterminal through 0.3.0 insecurely uses /tmp for a socket file, allowing a local user to cause a denial of service (preventing terminal launch), or possibly have other impact (bypassing terminal access control).

CVE-2016-8202
Published: 2017-05-08
A privilege escalation vulnerability in Brocade Fibre Channel SAN products running Brocade Fabric OS (FOS) releases earlier than v7.4.1d and v8.0.1b could allow an authenticated attacker to elevate the privileges of user accounts accessing the system via command line interface. With affected version...

CVE-2016-8209
Published: 2017-05-08
Improper checks for unusual or exceptional conditions in Brocade NetIron 05.8.00 and later releases up to and including 06.1.00, when the Management Module is continuously scanned on port 22, may allow attackers to cause a denial of service (crash and reload) of the management module.

CVE-2017-0890
Published: 2017-05-08
Nextcloud Server before 11.0.3 is vulnerable to an inadequate escaping leading to a XSS vulnerability in the search module. To be exploitable a user has to write or paste malicious content into the search dialogue.