A Canadian businessman as well as his company have pleaded guilty regarding charges that they transferred technical details about a US Navy undersea submarine rescue vehicle to China. This was done as an effort to sell versions to the Chinese navy, according to US court records.
The businessman pleaded guilty to a misdemeanor in federal court in Washington, where he admitted that he transferred a thing of value to the US without authorization. The man along with the government valued the data as worth no more than $1,000.
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The man now faces a recommended sentencing range of six to 12 months, with prosecutors agreeing to seek a sentence of the brief time served by the man in a Washington jail after his January indictment, as well as a $25,000 fine.
The company of the man has also pleaded guilty to a felony count of making false statements to US authorities, the Washington Post reports. This was done by omitting that the company worked on a proposal with its Chinese parent company, in order to sell a version to China’s navy. As part of a plea agreement, prosecutors agreed to recommend a fine of $84,000 at sentencing.
US District Judge Colleen Kollar-Kotelly planned sentencing in both cases for December 2.
More specifically, the man acknowledged that he and the company shared a technical drawing regarding a remotely operated rescue vehicle, which is able of docking with a sunken sub 2,000 feet underwater. It also can carry up to 18 people.
The company had commercial rights to the data, but the man was aware that the US Navy expected confidentiality for certain rights it had to some data.
The businessman was released on personal recognizance and is allowed to travel in Canada and Europe. What is more, the judge lifted restrictions regarding his travel to China after his plea.
