Twenty-Year Fugitive Sentenced to Federal Prison for Conspiring to Export Defense Articles to Iran

Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced En-Wei Eric Chang, age 48, a citizen of the United States and the Republic of Taiwan, residing in Taiwan, today to two years in federal prison, followed by supervised release of six months of home detention, for a conspiracy related to the export of defense materials to Iran.  Such materials were embargoed under the Iranian Transactions and Sanctions Regulations (“ITSR”).  Judge Bennett also ordered Chang to pay a $10,000 fine.

The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; and Special Agent in Charge Christopher Dillard of the Department of  Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office.

“As this case demonstrates, federal prosecutors have long memories.  If you choose to flee rather than face your federal charges, you will be found and prosecuted,” said United States Attorney Erek L. Barron. 

As detailed in Chang’s plea agreement, the export from the United States of arms, munitions, military aircraft parts, and related components and technology, is strictly controlled.  The Munitions List is a catalog of designated “defense articles” which are subject to export and certain import restrictions.  Any person who intends to export defense articles on the Munitions List from the United States is required to first obtain a license and must identify in the required license application the ultimate and final destination of the goods.  At the time of the conspiracy, it was the policy of the United States to deny licenses, other approvals, and exports of defense articles destined for Iran.

According to his guilty plea, from January 2002 to March 2003, Chang conspired with David Chu to ship items on the Munitions List to Iran without obtaining the proper licensing.  Chu had a business relationship with an Iranian businessman and was the sole individual in contact with the Iranian businessman during the time of the conspiracy.  In 2001 Chu became acquainted with Chang through Chang’s work as an electrical component supplier.
 

According to the plea agreement and other court documents, in January 2002, Chu asked Chang to facilitate an Iranian businessman’s request to research satellite imagery dealers, and Chang agreed to do so.  Shortly thereafter, Chang emailed a Maryland corporation to acquire high-definition satellite space images of Tehran, Iran for export from the United States to Iran.  An undercover government agent based in Maryland ultimately responded to Chang, pretending to be a businessman who could help him acquire the satellite images from a defense contractor.  

Chang and the undercover agent communicated over serval months regarding the status of the satellite images order.  Chu’s Iranian contact subsequently asked Chu to research and source antennas, and on March 12, 2002, Chang contacted the undercover agent asking for quotes on cavity-backed spiral antennas with military applications, including the detection and surveillance of ground-based radar.  These antennas were designated as defense articles on the United States Munitions List.  The undercover agent agreed to attempt to source the antennas.  Chang admitted that he knew that the acquisition of the antennas from the United States for export either directly or indirectly to Iran without proper licensing, was a violation of United States law.  Chang also knew that he did not have the proper license or authorization.

As detailed in the plea agreement, the undercover agent ultimately quoted prices for various models of antennas and noted that the U.S.- based manufacturer “won’t even accept order without approved export license up front.”  Chang repeatedly urged the undercover agent to act faster and on July 19, 2002, Chang wrote: “The Iran guy promises [my co-conspirator, Chu] a 10 million USD business [per] year if we can really do this.”  On July 31, 2002, Chang provided banking information from the undercover agent to Chu to facilitate a $6,400 transfer to the undercover agent in Maryland as a 50% down payment on the cavity-backed antennas, which would take approximately five months to produce.

From March 2002 through January 2003, Chang kept in regular contact with the undercover agent regarding the antennas and asked the undercover agent for pricing information that he indicated was requested by his “buyer” in Iran for items that Chang indicated his “buyer” was interested in purchasing.  The items included: an anti-submarine and surveillance radar system for installation on helicopters and airplanes; military-grade night-vision goggles for use by pilots; helicopters and helicopter engines; ten handheld laser range-finders; and other military items.

By January 2003, the cavity-backed spiral antennas had been produced in the United States.  Chang, his co-conspirator, David Chu, and the undercover agent agreed to transfer the cavity-backed spiral antennas in Guam, where Chu could take possession of them and transfer them to Iran.  In February 2003, Chu travelled to Guam and took possession of the cavity-backed spiral antennas from the undercover agent.  Chu was arrested and his luggage seized by U.S. authorities before he could board the flight to Taiwan.

On March 4, 2003, the undercover agent, via email, informed Chang of his true identity and told Chang that he had been indicted in the District of Maryland with conspiracy to export U.S. Munitions List items to Iran, and that his co-conspirator Chu was in the custody of the U.S. Marshals.  The undercover agent encouraged Chang to turn himself in.  On March 12, 2003, Chang met with U.S. officials in Taiwan who told Chang that he should consider surrendering to the United States on the current charges, but Chang declined.  Chang remained a fugitive until his arrest on April 10, 2023 at Rome-Fiumcino International Airport in Italy and subsequent extradition to the United States.

Co-defendant David Chu, age 48, of Monterey Park, California, pleaded guilty to his role in the conspiracy and was sentenced on February 23, 2004, to two years in federal prison.

U.S. Attorney Erek L. Barron commended HSI and DCIS for their work in the investigation.  Mr. Barron also thanked Assistant United States Attorneys Aaron S.J. Zelinsky and Robert I. Goldaris, who are prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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