don’t let this happen to you!!! university professor sentenced to federal prison professor john...
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DON’T LET THIS HAPPEN TO YOU!!!University Professor Sentenced to FEDERAL Prison
Professor John Reece Roth: formerly of theUniversity of Tennessee
EXPORT CONTROL &ITAR
International Traffic in Arms Regulations
Dr. Carla Raineri PadillaFayetteville State University
Fayetteville, N.C.
Agencies Involved:
Dept. of State (ITAR)
Dept. of Commerce: Bureau of Industry and Security-BIS (Export Control)
Dept. of Treasury: Office of Foreign Assets Control OFAC economic & trade sanctions against targeted
1. Foreign Governments2. Individuals 3. Practices (i.e. illegal embargoes)
Other Agencies Involved:
Dept. of EnergyNuclear Regulatory CommissionDept. of Commerce-Patent & Trade OfficeDept. of InteriorFood & Drug AdministrationDept. of Commerce- Bureau of CensusDHS- Border & Transportation SecurityDHS- US Customs Service
Why are Exports Controlled?
National Security Foreign Policy
Anti-Terrorism Crime ControlRegional Stability
Non-proliferationNuclear WeaponsChemical/Biological WeaponsMissiles/Rocket Systems & UAV
“Subject to the EAR” 15 CFR §734.2(a)
• Items and activities under regulatory jurisdiction of the EAR
• Items on the Commerce Control List (CCL) • Some items located outside of the United States (depends on the % US items and the
country its going to)
“Subject to the EAR” cont.
• US Persons and Foreign Persons(ANY Person in the U.S. is a U. S. Person!!!)
• ALL Items in the United States except:Publicly available technology and software
(Excluding- Encryption)
EXPORT
REEXPORT (RETRANSFER):
Shipment or transmission of items subject to the EAR from one foreign country to another
ITEM:1. Commodity2. Software3. Technology
(IP)
“Knowledge”
Includes:• Positive knowledge that a circumstance exists
or is substantially certain to occur• An awareness of a high probability of its
existence or future occurrence
KNOW = reason to know = reason to believe
3 Questions You Must Ask
1. What is the item/technology?2. Where or to whom is it going?3. What is the end use?
Dept of Commerce: Office of Export Enforcement
Export enforcement- task is to prevent the export of U.S. goods and technology that may be used by rogue states or terrorists to make chemical, biological or nuclear weapons
Dual–Use Commodities
Dual-use
Telecom Relay Device Triggered Spark Gap
Civilian use- office equipmentMilitary use- IED triggers
Civilian use- hospital equipmentMilitary use- detonator for nuclear bomb
“FRE”- Fundamental Research ExclusionNSDD 189
Basic and applied research in science & engineering, the results of which ordinarily are published & shared broadly within the scientific community, as distinguished from proprietary research & from industrial development, design, production, & product utilization, the results of which ordinarily are restricted for proprietary or national security reasons.
U Research is NOT “FRE” if:
1. Publication restrictions2. Side-deals, such as NDA’s3. Sponsor approval is required prior to
publication4. Security Clearance Required
U Research is NOT “FRE” if:
5. Government Contract involves ITAR6. Transfer of Defense Services7. “Use” of Controlled Equipment by a foreign
national-May require a license, even if the research is otherwise “FRE”
8. Encryption Technology
NOTE: Include the price of a CCL export license if you are writing a grant that requires the tech be shared with foreign nationals or occurs in a foreign country
U of Massachusetts at Lowell: “Use” of Controlled Equipment in
Fundamental Research
• BIS charged U Mass with violations of the Export Control Act for the export of EAR 99, atmospheric testing device.
• Device was used by the space and Upper Atmospheric Research Commission in Pakistan for Fundamental Research
• Charged May 2013- currently in litigation
Release of TechnologyRelease of technology can occur through:
1. Visual inspection2. Oral exchange3. Application of Knowledge
Deemed Exports
Deemed Export release of technology or software source code to a foreign national in the United States.
Considered an export to the home country of the foreign national
Rule does not apply to:– Permanent resident aliens– Protected individuals
Deemed Export Rule
“Deemed Export Rule”: The obligation to get a license before releasing controlled technology to a foreign person
Release of controlled technology to foreign persons in the U.S. are “deemed” to be an export to the person’s country or countries of nationality.
Deemed Exports Currently Targeted:
• Biotechnology• Pharmaceuticals• Nanotechnology• Quantum Computing• Advanced Materials• Communication & Encryption Technology• Weapons Systems yet Unclassified
ITARUS Munitions List
1- Firearms, Close Assault Weapons and Combat Shotguns2- Guns and Armament3- Ammunition/Ordnance4- Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs and Mines5- Explosives and Energetic Materials, Propellants, Incendiary Agents and Their Constituents
6- Surface Vessels if War and Special Naval Equipment7- Ground Vehicles8- Aircraft and Related Articles9- Military Training Equipment and Training10- Protective Personnel Equipment and Shelters
USML- cont.
11- Military Electronics12- Fire Control, Range Finder, Optical and Guidance Control Equipment13- Materials and Miscellaneous Articles14- Toxicological Agents, Including Chemical Agents, Biological Agents and Associated Equipment15- Spacecraft Systems and Associated Equipment
16- Nuclear Weapons, Design and Testing Related Items17- Classified Articles, Technical Data, and Defense Services Not Otherwise Enumerated18- Directed Energy Weapons19- Gas Turbine Engines and Associated Equipment20- Submersible Vessels and Related Articles
FSO
Facility Security Officer
US DoD: Defense Security Service
http://www.cdse.edu/resources/resources-fso.html
SCIF
Sensitive Compartment Information Facility
Must be US Government accredited
Minimum Requirements defined in “Community Directive (ICD) 705/IC Technical Specification”http://www.ncix.gov/publications/policy/docs/ICD_705-Sensitive_Compartmented_Information_Facilities.pdf
http://www.fas.org/irp/dni/icd/ics-705-ts.pdf
DoD and ITARS
GrantsContractsSubcontract-
watch flow-down requirements
If you do get a Sensitive Grant
1. FSO2. SCIF3. DO NOT have foreign nationals in the lab4. Check security clearance requirements for
your personnel5. Do not take any technology outside of the
country6. Check with your Export Control Officer
DON’T LET THIS HAPPEN TO YOU!!!University Professor Sentenced to FEDERAL Prison
Professor John Reece Roth
University of Tennessee Sentence to 4 years in federal prison for Violations of Export Control Laws
How did the Plasma Guidance System he developed end up in Chinese Drones?
• Roth took reports and related studies in his laptop to China in 2006 while attending conferences
• Roth had two foreign research assistants, 1 from Iran and 1 from China, working on secure research projects- He had been told by U. Export Control Officer they could not be in the lab.
DON’T LET THIS HAPPEN TO YOU!!!University Professor Sentence to FEDERAL Prison
Dr. Thomas Campbell Butler Sparked Bioterrorism Scare• 30 vials of Yersinia pestis
went missing from his lab.• Causal organism of Bubonic
Plague• He had illegally exported
them to U of Tanzania for research and lied about the export
• Convicted on 47 countsFormerly:Chief of Infectious Disease
Texas Tech University
Other Universities
2009 Georgia Institute of Technology’s restricted access course on US Weapons Tech was accidentally uploaded to the Web and available for view for 15 days• Viewed by individuals in 36 countries,
including China and Iran
Theft of Trade Secrets
U of Buffalo’s Technology Incubator- Amherst
Yi Liu- PhD in Mechanical Engineering24 Oct 2013 – 7 count indictment for theft of trade secretsMaximum possible penalty 60 years & $3,500,000 fine
How to get Around Problems:
• For subawards/subcontracts- check you flow down
• Do not accept awards with publication restrictions
If you want to get a sensitive grant of contract but it is outside of normal University Procedures
Use your universities Research Corporation 501(c)(3)
1. Voluntary Compliance Programs2. If you want to use a foreign national in export controlled work (not ITAR) get a license BISNote: Generally not granted for individuals from
ChinaSyriaNorth KoreaNorth SudanIran
How to make BIS happy
Penalties
Export Control ViolationsUniversity:
up to $1,000,000or 5X the value of
the violationIndividual:
$250,000up to 10 years or both
Revocation of licenses
ITAR ViolationsUniversity: up to $1,000,000
Individual:$250,000
up to 10 years or both
Revocation of licenses
Methods Used to Target Technology
• Hacking• Unsolicited emails• Compromise of laptop
while traveling overseas• Downloading information
from your network• Visiting Scientific and
Research Delegations• Attending/Hosting
Conferences
• Front Companies• Relocating R & D
facilities overseas• Circumventing Export
Control Laws• Liaisons with Universities
that have ties to Defense Contractors
• Recruiting by Foreign Intelligence Services
Questions
Carla Raineri [email protected]
910.672.1569Fayetteville State University
1200 Murchison RoadFayetteville, NC 28301
Handy Dandy Web Addresses
State Department Compliance Program Guidelines: http://www.pmddtc.state.gov/compliance/documents/compliance_programs.pdf