SmallGovTimes.com

By: Jim Kouri | Published on 11/10/06    

A Hawaii man of Indian descent was indicted by a federal grand jury on charges he sold missile-related national defense secrets to the People's Republic of China.

A federal grand jury in Honolulu returned an 18-count indictment against Noshir S. Gowadia, age 62, of Maui, charging him with performing defense related services for the People's Republic of China by agreeing to design -- and then later designing -- a low observable cruise missile exhaust system nozzle capable of evading detection and interception by the US missile defense systems currently in place.

Count one of the indictment charges Gowadia with conspiring to violate the Arms Export Control Act by entering into an illegal agreement to design and assist in the testing of the stealthy cruise missile nozzle.

Count two charges Gowadia with the substantive act of performing a defense service for the Chinese without first obtaining the necessary licensing approval of the US Department of State.

The superseding indictment describes six trips taken by Gowadia to China for the purpose of discussing, designing and testing the stealthy cruise missile nozzle and describes contacts through covert email addresses between Gowadia and named co-conspirators, one of whom is alleged to be a representative of China's "Foreign Experts Bureau."

The superseding indictment also describes Gowadia's covert travel and entry into mainland China for the purpose of assisting the Chinese military in the development of the stealthy exhaust nozzle.

The superseding indictment also charges Gowadia with three counts of willfully communicating classified national defense information to Chinese representatives with the intent that it be used to the advantage of the their military or to the injury of the United States.

These charges each carry a term of imprisonment up to life, with a possible maximum sentence of death if certain statutory criteria are met, and a maximum fine of up to $250,000, or twice the gross gain derived from the violation.

The superseding indictment additionally charges Gowadia with two counts of willfully communicating classified national defense information which could be used to the advantage of the Chinese who were not entitled to receive it.

The superseding indictment also includes counts from the original indictment charging three counts of communicating classified national defense information to a person not authorized to receive it, and three counts of exporting technical data related to a defense article without an export license.

Gowadia is also charged with the unauthorized retention and possession of classified national defense information and with four counts of laundering the financial proceeds he derived from his unlawful defense service work.

The superseding indictment also charges Gowadia with four counts of laundering funds paid to him by the PRC and provides notice of the government's intent to seek forfeiture of property which facilitated the espionage violations or was a proceed of Gowadia's alleged money laundering activities.

"As charged in the superseding indictment, the defendant in this case attempted to profit from his know-how and his knowledge of sensitive military technology," said Assistant Attorney General Ken Wainstein.

"This case demonstrates that the Department of Justice will vigorously prosecute those who illegally transfer such information and services to foreign countries."

Original URL:
http://www.smallgovtimes.com/story/06nov10.defense.secrets.chinese/index.html