After 20 Years on the Lam, Rogue Exporter Pleads Guilty

A citizen of the United States and the Republic of Taiwan, residing in Taiwan, pleaded guilty January 31 to a federal conspiracy charge, related to the export of defense materials to Iran 20 years ago. The defendant had remained a fugitive until his arrest on April 10, 2023, at Rome-Fiumicino International Airport in Italy and subsequent extradition to the United States.

According to En-Wei Eric Chang's guilty plea, from January 2002 and March 2003, he 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 and other court documents, in January 2002, the Iranian businessman requested that Chu research satellite imagery dealers.  Chu asked Chang to facilitate this request, 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.  The undercover agent told Chang: “if the items are going for end use in Iran, sending them there would be a violation of U.S. law.”  Chang wrote back that the images could be sent to Taiwan, and that “from Taiwan to Iran my friend will take care of it.”

Chang and the undercover agent communicated over serval months regarding the status of the satellite images order.  After Chu’s Iranian contact asked Chu to research and source antennas, on March 12, 2002, Chang contacted the undercover agent asking for quotes on antennas and included in his email specific part numbers for cavity-backed spiral antennas with military applications, including related to 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 the laws of the United States.  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: “Please understand our final end user is Iran. ‘the country’ They will keep buying the stuff if we can always deliver . . . 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 $6,400 to be transferred 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, then checked his luggage, which contained the antennas, for a flight from Guam to Taipei, Taiwan.  Chu was arrested and his luggage was 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 to surrender to the United States. 

Chang remained a fugitive until his arrest on April 10, 2023, at Rome-Fiumicino 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, followed by three years of supervised release.

Chang faces a maximum sentence of five years in federal prison for the conspiracy.  U.S. District Judge Richard D. Bennett has scheduled sentencing for May 8, 2024 at 11:00 a.m.