RCMP Charge Four in Connection with the Illegal Export of Goods and Technologies to China

KITCHENER, ON, Feb. 29, 2016 /CNW/ - Officers of the Royal Canadian Mounted Police (RCMP) Serious and Organized Crime Unit, Kitchener Detachment, have arrested two individuals in connection with the illegal export of controlled goods and technologies to China.

The investigation, dubbed Project OSensor, commenced in early 2014 after the RCMP was requested to conduct a criminal investigation by Public Services and Procurement Canada – Controlled Goods Directorate and Global Affairs Canada, as a result of a written complaint having been received by them from Teledyne DALSA Inc. Waterloo.  The matter involves controlled goods and technologies being shipped between Canada and China in violation of the Canadian Controlled Goods Program and related Export Laws.  Police allege that the four accused involved themselves in Chinese contracts for the design and development of Controlled Goods intended for space satellite use.  Two of the accused participated outside of their employment with a Waterloo based company, Teledyne DALSA Inc. while the third accused was a former Teledyne DALSA employee.  The fourth individual charged is employed with one of the Chinese companies allegedly involved in this matter.   These contracts involved a state-owned corporation and a Chinese based company founded by two of the accused to create microelectronics destined to enhance space satellite camera technology.

The RCMP has charged the following individuals and their companies:

Arthur Xin PANG (age 46) of Pierrefonds, Quebec, and his company Global Precision Inc. (GPI) with:

• Theft over $5000 contrary to the Criminal Code
• Fraud over $5000 contrary to the Criminal Code
• Conspiracy to Commit Fraud over $5000 contrary to the Criminal Code
• False Pretenses over $5000 contrary to the Criminal Code
• Possession of Property Obtained by crime over $5000 contrary to the Criminal Code
• Possession and Transfer of Controlled Goods contrary to the Defense Production Act
• Export of Controlled Goods without Permit under the Export and Import Permits Act
• Attempt to Export of Controlled Goods under the Export and Import Permits Act
• Failing to report goods in value exceeding $2,000 contrary to the Customs Act
• Failing to report restricted goods contrary to the Customs Act

Binqiao LI (age 59) of Waterloo, Ontario with:

• Theft over $5000 contrary to the Criminal Code
• Fraud over $5000 contrary to the Criminal Code
• Conspiracy to Commit Fraud over $5000 contrary to the Criminal Code
• Possession of Property Obtained by crime over $5000 contrary to the Criminal Code
• Possession and Transfer of Controlled Goods contrary to the Defense Production Act

Nick TASKER (age 62) of the United Kingdom, formerly of Montreal and his company 3D Microelectronics Inc., Montreal.

• Fraud over $5000 contrary to the Criminal Code
• Conspiracy to Commit Fraud over $5000 contrary to the Criminal Code
• Export of Controlled Goods without Permit under the Export and Import Permits Act
• Attempt to Export of Controlled Goods under the Export and Import Permits Act

Hugh CIAO (age 50) of California, USA, who is currently in China.

• Fraud over $5000 contrary to the Criminal Code
• Conspiracy to Commit Fraud over $5000 contrary to the Criminal Code

Canada has a Controlled Goods Program which is a domestic industrial security program that helps strengthen Canada's defence trade controls and prevents the proliferation of tactical and strategic assets including weapons, satellite global positioning systems and communications equipment, military equipment and related intellectual property.  This is done by regulating and controlling the examination, possession and transfer of controlled goods and controlled technology in Canada.  Anyone who conducts business in Canada and examines, possesses and/or transfers controlled goods/technology in Canada must comply with the Defence Production Act and the Controlled Goods Regulations and the related Export laws governed under the Export Import Permits Act.

"Canada has an international responsibility to safeguard its exports which potentially may be used against Canadians and their allies" said Superintendent Jamie JAGOE, Southwest District Commander for the RCMP in Ontario, "this investigation is an example of foreign governments having an interest in Canadian based controlled technology and it highlights the RCMP's commitment to keeping Canadian's safe from the potential misuse of that technology".

The RCMP would like to thank the Canadian Space Agency, Canada Border Service Agency, Department of National Defense, Public Services and Procurement Canada, Global Affairs Canada, and US Agencies including the Department of Homeland Security, and FBI for their valuable assistance with this investigation.

Arthur PANG and Binqiao LI have been arrested and will be appearing for a bail hearing on February 29, 2016 at the Waterloo Region Courthouse, 85 Frederick St., Kitchener.  Arrest warrants have been issued for Nick TASKER and Hugh CIAO.  The investigation is ongoing and additional charges are anticipated.

SOURCE Royal Canadian Mounted Police

For media inquiries contact: Sgt Penny HERMANN, RCMP Media Relations, RCMP "O" Division, 905-876-9571; Facebook: RCMP.Ontario; YouTube: RCMPGRCPOLICE; Website: RCMP in Ontario; Twitter: @RCMPONT