> This defendant schemed to export to China semiconductors with military and civilian uses, then he lied about it to federal authorities and failed to report in

> This defendant schemed to export to China semiconductors with military and civilian uses, then he lied about it to federal authorities and failed to report income generated by the scheme on his tax returns Funny how it always comes back to taxes These people were rank amateurs. You don't do something in this category of activity, unless you're planning to move back to China and you know the government authorities there will have your back. You don't commit a US federal crime that involves defense secrets, continue to live in the USA, and have that income noticed by the IRS. Also, the payoff needs to be commensurate with the risk. If you're not set for life, you're not doing it right. In fact, if given the opportunity, assume you won't do it right, and just don't do it. I'm also curious how he was contacted by that Chinese company. Did he just get an email one day asking for chips in exchange for money? I wonder if there are foreign agents conning US citizens into ex-filtrating sensitive materials and information? The average person would have no way of knowing if someone was using an assumed identity. Such agents could arrange to be out of the country when the deal went down, and certainly by the time the IRS gets involved. Chinese business practices can sometimes be a bit scofflaw. I know that some Chinese exporters (at least used to) ignore certain procedures and documents, because the US personnel didn't have the manpower to enforce certain regulations, despite the fact that jail sentences could technically result. I'd bet a lot of IoT startup projects have run afoul of those regulations. There's also a startup culture idea that people should be a "bit naughty" or engage in civil disobedience in the name of disruptive capitalism. That stops when it comes to the interests of the US Defense Department.