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US Mil Contractor Admits Selling Aviation Secrets To China!

US Mil Contractor Admits Selling Aviation Secrets To China!

A US military contractor just pleaded guilty to selling classified aviation secrets to China!

 

US Mil Contractor Admits Selling Aviation Secrets To China!

On 23 June 2022, Shapour Moinian, 67, of San Diego, pleaded guilty to selling classified aviation secrets to “representatives of the Chinese government”.

Moinan admitted that he knew that those individuals were employed by, or directed by, t he government of the People’s Republic of China.

He also admitted making false statements to cover that up, by lying on his government background questionnaires in July 2017 and March 2020 that he did not have any close or continuing contacts with foreign nations, and that no foreign national had offered him a job.

He now faces a maximum penalty of 10 years in prison, and a fine of up to $250,000 for action as an agent of a foreign government, and up to 5 years in prison and a $250,000 fine for making false statements.

His sentencing is scheduled for August 29, where federal prosecutors have agreed to recommend a sentence of no more than 20 months, as part of his plea agreement.

As Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office explains :

The defendant admitted to being an unregistered agent of a foreign power, lying on his background check paperwork to obtain his security clearance, knowingly providing proprietary information to people controlled by the Chinese government, and willingly receiving payments from them. This is another example of how the Chinese government enhances its defense capabilities through the illicit exploitation of U.S. technology.

When someone holds a security clearance, they know what information should be reported to security officials. In this case, the defendant betrayed his sacred oath, knew his actions were wrong, and subsequently lied about it. The FBI and our partners on the Counterintelligence Task Force will pursue anyone who abuses their placement and access to obtain proprietary information on behalf of a foreign government. I specifically want to thank the Naval Criminal Investigative Service (NCIS) for their continued partnership on this case.

 

How This Military Contractor Sold Aviation Secrets To China!

Moinan was a former US Army helicopter pilot who served in the United States, Germany and South Korea from 1977 to 2000. After leaving the US Army, he worked for various “cleared” defence contractors in the United States.

The term “cleared” indicates that the contractor has been vetted and cleared to work on projects involving classified information.

While working for a cleared defence contractor on various aviation projects involving the US military and intelligence agencies, Moinan was contacted by an individual in China, who claimed to be working for a technical recruiting company.

This Chinese individual offered Moinan the opportunity to consult for the aviation industry in China. In March 2017, Moinan travelled to Hong Kong to meet with this recruiter.

At that meeting, he agreed to provide information and materials related to multiple types of aircraft designed and/or manufactured in the United States, in exchange for money. Moinan accepted between $7,000 to $10,000 during that meeting.

On returning to the United States, Shapour Moinan began gathering aviation-related materials for the Chinese government.

In one instance, he copied classified materials obtained from a cleared defence contractor into a thumb drive, which he handed over to Chinese government officials during a stopover in the Shanghai airport in September 2017.

Moinan arranged for payment for this transfer to be paid through his stepdaughter’s South Korean bank account. He told her that these funds were payments for his overseas consulting work, and instructed her to transfer the funds to him in multiple transactions – to avoid scrutiny.

Moinan also accepted a mobile phone, and other equipment from these Chinese government officials to securely communicate with them, and to aid in the electronic transfer of classified materials and information.

At the end of March 2018, Moinan travelled to Bali to meet with the same individuals again. After that meeting, his step daughter received thousands of dollars in her South Korean bank account, which she wired to him in multiple transactions.

Later in 2018, Moinan went to work for another cleared defence contractor, and in August 2019, he travelled with his wife to Hong Kong to meet with the same Chinese government officials.

This time, he received $22,000 in cash for his services, which Moinan and his wife smuggled into the United States that trip.

It is currently unknown how the US government discovered Moines’s activities, but he was investigated by the FBI’s Counterintelligence Division and the Naval Criminal Investigation Service (NCIS).

 

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Dr. Adrian Wong has been writing about tech and science since 1997, even publishing a book with Prentice Hall called Breaking Through The BIOS Barrier (ISBN 978-0131455368) while in medical school.

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