2009/02/02
By: Danielle McClellan
Well Being Enterprise Co., Ltd. of Taiwan has been charged with 25 violations of the Export Administration Regulations. Over a span of 3 years the company exported and induced others to facilitate illegal exports of chemicals, metals, and electronic components found on the Commerce Control List. The company has been fined $250,000 for the violations.
Beginning in 2003 Well Being created a scheme that would allow them to export certain chemicals, metals and electronic components to Taiwan. The company requested that its affiliated US company, Elecmat of California, obtain these items from US suppliers and then export them to Well Being headquarters in Taiwan. Elecmat was told not to tell US suppliers that the items would later be exported to Taiwan without the required license.
In 2005, Well Being provided electronic instructions to Elecmat explaining that they should avoid using their correct name when ordering nickel powder from a specific US supplier. The US supplier was aware of Well Being’s relationship with the affiliated US company and was concerned that the supplier would decline the purchase order because the powder could be illegally exported between the two companies. Elecmat purchased ten kilograms of nickel powder and then stored, sold, and forwarded it to Well Being. The nickel powder is classified under ECCN 1C240 and required a license for export from Elecmat to Well Being in Taiwan.
On 22 separate occasions Well Being instructed Elecmat to acquire and export several regulated items classified under the following ECCNs without a license:
- 1C227
- 1C299
- 1C231
- 1C234
- 1C240
Elecmat had previously obtained export licenses for exports of similar items to Taiwan, and was informed by suppliers that the items required licenses for export.
Elecmat’s sole officer was ironically the president of Well Being, Theresa Huei-Min Chang of California. Chang received $6,500 a month from Well Being as compensation for managing Elecmat. Chang has been charged in the above proceedings with 3 charges of illegal exporting, acting with knowledge of a violation and concealment of facts. Chang has been added to BIS’s denied parties list for a period of 2 years.
Hui-Fen Chen, a.k.a. Angela Chen 1 of Taiwan, was an employee of Well Being and conspired to conceal the exports from Elecmat to Well Being. She has been charged with 1 violation of conspiracy to export items which require a license and has been added to the denied parties list for 20 years.
$220,000 of the fined imposed by BIS will be suspended for 5 years and eventually waived as long as Well Being does not commit any more violations during the period of suspension. Well Being and its successors or assigns, officers, representatives, agents and employees will not be able to participate in any transactions involving any items found on the Commerce Control List that are to be exported or reexported from the US for a period of 20 years. In short, the company has been added to BIS’s denied party list for 20 years.
More Information:
- Well Being Charging Letter (PDF)
- Hui-Fen Chen Charging Letter (PDF)
- Theresa Huei-Min Chang Charging Letter (PDF)
- Elecmat, Inc. Charging Letter (PDF)
