Business Owner Faces 20 Years for Attempting to Export Military Tech to China

Business Owner Faces 20 Years for Attempting to Export Military Tech to China.

David C. Bohmerwald, 63, owner of the electronics resale company Components Cooper Inc., pleaded guilty to attempting to illegally export accelerometer technology with military applications to China without the proper license. This violation of the Export Control Reform Act (ECRA) could result in a maximum sentence of 20 years in prison.

The Crime: Exporting Sensitive Technology

Bohmerwald purchased 100 accelerometers from a U.S.-based electronics company, intending to send them to a business in China. These accelerometers have diverse applications, from product development to defense use.

In military settings, they are crucial for structural testing, flight control, and navigation, often playing a role in missile systems and other sensitive technologies. Due to their military applications, exporting accelerometers to China requires a special license.

Bohmerwald's suspicious purchase triggered a response from the electronics company, which alerted law enforcement. When he made the purchase, Bohmerwald falsely claimed the devices were for a company in Missouri. However, federal agents later discovered that no such order existed.

Intercepting the Illegal Shipment

After receiving the accelerometers, Bohmerwald attempted to ship them via FedEx. Two packages were dropped off at a local store, one of which was addressed to a company in China.

A Department of Commerce Bureau of Industry and Security (BIS) agent intercepted the shipment, discovering that the package contained the 100 accelerometers and lacked any relevant export license.

Additionally, Bohmerwald undervalued the shipment. He listed the package's worth at $100, even though its true value was nearly $20,000.

Bohmerwald’s Confession

When questioned by agents, Bohmerwald admitted that he had acquired the accelerometers on behalf of a Chinese company. He also acknowledged that he was aware the items were export-controlled and that exporting them to China required a license.

Agencies Involved in the Case

The investigation was carried out by several agencies, including the Bureau of Industry and Security (BIS), FBI, and Homeland Security Investigations.

The Disruptive Technology Strike Force, which includes both the Departments of Justice and Commerce, coordinates these efforts to protect U.S. supply chains and prevent critical technologies from falling into the hands of hostile foreign actors.

National Security Concerns

This case underscores the growing concerns over the illegal transfer of sensitive technologies to foreign nations, particularly China, which is viewed as a key competitor in global technological and military advancements. U.S. authorities have heightened their focus on preventing the export of technologies that could enhance military capabilities in rival countries.

Bohmerwald faces significant legal consequences for his actions, with a maximum penalty of 20 years in prison.

His case serves as a reminder of the importance of export control laws, designed to safeguard U.S. national security by preventing critical technologies from being accessed by adversarial regimes.

The Disruptive Technology Strike Force

This case was part of a broader initiative coordinated by the Disruptive Technology Strike Force, which aims to target illicit actors attempting to illegally acquire sensitive U.S. technologies. The force works across multiple government agencies to protect technological innovation and maintain national security.

The Export Control Reform Act (ECRA) is a U.S. law designed to regulate and control the export of sensitive goods, technologies, and services that have potential military applications or national security implications.

Enacted in 2018, the ECRA modernized and streamlined the U.S. export control system, which was previously governed by a patchwork of laws and regulations, including the Arms Export Control Act (AECA) and the Export Administration Act (EAA).

Key Aspects of the ECRA:

1. Dual-Use Technologies: The ECRA is particularly focused on controlling "dual-use" technologies—those that have both civilian and military applications. This includes advanced materials, software, electronics, and other high-tech products that could be used in military systems or contribute to the development of weapons of mass destruction.

2. Shift from the AECA to ECRA: Prior to the ECRA, the International Traffic in Arms Regulations (ITAR) governed the export of military goods, while the EAA controlled the export of sensitive technologies that were not specifically military in nature. The ECRA brought these regulations under one unified framework, making it easier for U.S. agencies to oversee and regulate the export of such technologies.

3. National Security and Foreign Policy: One of the key goals of the ECRA is to enhance U.S. national security by preventing the unauthorized export of critical technologies to adversarial countries, such as China, Russia, and other nations that may use these technologies for military purposes. The law gives the Department of Commerce the authority to add items to the Commerce Control List (CCL), which identifies items subject to export controls.

4. Licensing Requirements: Under the ECRA, a license is required for exporting controlled items to certain countries or entities. The government carefully reviews export license applications to ensure that sensitive technologies do not fall into the hands of hostile foreign governments, military organizations, or non-state actors.

5. Enforcement: The law also strengthens enforcement mechanisms, allowing the Bureau of Industry and Security (BIS), FBI, and other agencies to investigate and prosecute violations of export controls. Penalties for violating the ECRA can be severe, including hefty fines and long prison sentences.

6. Preventing Technology Theft and Espionage: The ECRA plays a crucial role in protecting U.S. technological superiority by preventing the theft or illegal transfer of critical technologies, especially to countries with which the U.S. has strategic concerns. This includes measures against espionage and illicit trade in sensitive goods.

7. Interagency Collaboration: The ECRA also facilitates greater collaboration between various government agencies, including the Departments of Justice, State, Commerce, and Homeland Security. These agencies work together to ensure that sensitive technologies are properly safeguarded and that export controls are adhered to.

Bohmerwald faces significant legal consequences for his actions, with a maximum penalty of 20 years in prison.