By: Brooke Driver
Chih-Kwang Hwa, owner of the Precision Image Corporation, located in Woodinville, Washington, pleaded guilty on July 30, 2013 to charges of wire fraud and violation of the Arms Export Control Act. Precision Image, a contracted manufacturer of high-tech components for the U.S. Navy, illegally sub-contracted a Taiwanese integrated circuit board manufacturer to create the circuit boards necessary for the Navy job, despite the fact that company owner Hwa had signed a contract stating that all components would be manufactured in the United States. In the process, of course, Hwa shared restricted Navy technical data with the Taiwanese manufacturer, a violation of the United States Munitions List of the ITAR.
U.S. Attorney Jenny A. Durkan comments on the case, “Our national security depends upon protecting our military systems and their specifications. Going ‘on the cheap’ gave this defendant an unfair advantage over other suppliers and risked our security. Protecting our military technical data and enforcing our export restrictions are critical priorities of the U.S. Attorney’s Office.”
Hwa and his company will be sentenced for their crimes October 28, 2013 by U.S. District Judge James L. Robart. At this time, Robart will decide if he agrees with the prosecutors’ suggested punishment: a $300,000 fine for the company and a jail sentence of 15 to 21 months for the unfortunate man behind it—and while this may seem a steep price, it is nothing compared to the maximum penalty of $100,000,000 and 20 years in prison, which Robart has every right to invoke.