New York Resident and His Company Sentenced for Conspiracy to Export Computer-Related Equipment to Iran

WASHINGTON – Jeng “Jay” Shih, 54, a U.S. citizen, was sentenced today in the District of Columbia to 18 months in prison, while his Queens, N.Y., company, Sunrise Technologies and Trading Corporation, was sentenced to 24 months corporate probation for conspiracy to illegally export U.S.-origin computers from the United States to Iran through the United Arab Emirates (UAE).   Both Shih and his company were also sentenced to forfeiture in the amount of $1.25 million, for which they are jointly liable.

The sentences were announced by Lisa Monaco, Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; John Morton, Director of U.S. Immigration and Customs Enforcement (ICE); David W. Mills, Assistant Secretary for Export Enforcement, Department of Commerce; and Adam Szubin, Director of the Office of Foreign Assets Control (OFAC), Department of the Treasury.

On Oct. 7, 2011, Shih and his company each pleaded guilty to conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and to defraud the United States.   Under the terms of the plea and related civil settlements with the U.S. Department of Commerce’s Bureau of Industry and Security and OFAC, Shih and his company agreed to forfeiture in the amount of $1.25 million.   In addition, Shih and Sunrise are denied export privileges for 10 years; although, this penalty will be suspended provided that neither Shih nor Sunrise commits any export violations.

Shih was arrested on a criminal complaint on April 6, 2011.   He and his company were later indicted on April 21, 2011.   According to court documents filed in the case, beginning as early as about 2007, Shih conspired with a company operating in Dubai, UAE, and Tehran, Iran, to procure U.S.-origin computers through Sunrise and export those computers from the United States to Iran, through Dubai, without first obtaining a license or authorization from OFAC.

Specifically, in April 2010, the defendants caused the illegal export of 368 units of computer-related goods to Dubai, which were later sent to Iran.   Later that month, the defendants caused the illegal export of 158 additional units of computer-related goods to Dubai, which were later sent to Iran.   The defendants subsequently caused an additional 185 units of computer-related goods to be illegally exported to Iran via Dubai.

This investigation was conducted by the ICE’s Homeland Security Investigations (HSI) field offices New York and San Diego, and the Department of Commerce Office of Export Enforcement field offices in New York and Los Angeles, with assistance from ICE-HSI offices in Chicago, Newark, N.J., Los Angeles and Orange County, Calif.  The Department of Homeland Security’s U.S. Customs and Border Protection and OFAC’s Office of Enforcement also assisted in the investigation.  

Chief Counsel Attorney Gregory Michelsen and Attorney-Advisor Elizabeth Abraham from the U.S. Department of Commerce, and Assistant Director of Enforcement Michael Geffroy and Enforcement Officer Elizabeth Fruzynski of the U.S. Department of Treasury handled the civil settlements for their respective agencies.

The prosecution was handled by Assistant U.S. Attorneys T. Patrick Martin and Anthony Asuncion, from the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Jonathan C. Poling from the Counterespionage Section of the Justice Department’s National Security Division. 

Sen.Flanagan Votes Yes - Supports DNA Databank Expansion

SENATOR FLANAGAN SUPPORTS SENATE PASSAGE OF DNA DATABANK EXPANSION 
Legislation Would Enact Governor’s Proposal To Include Misdemeanors 

Senator John Flanagan (2nd Senate District) recently voted for the 
largest expansion of the state’s DNA databank since it was created in 1994. 
The legislation mirrors the DNA databank expansion plan proposed by 
Governor Andrew Cuomo in his recently introduced Executive Budget and would 
require those who are convicted in New York State of a felony and a 
misdemeanor under penal law to submit DNA samples to the authorities. 

Under the current standard, DNA collection is required in less than 
half of the crimes committed in New York State. While those required to 
submit DNA samples includes those convicted of every penal law felony and 
36 misdemeanor crimes in penal law, the legislation supported by Senator 
Flanagan would expand that list to include all felonies in state law and 
every penal law misdemeanor. 

It is projected the expansion would add about 46,000 individual DNA 
samples a year to the databank. 

“The DNA databank helps convict those who victimize our fellow New 
Yorkers while clearing the names of those wrongly convicted and it is 
essential that our state utilize it fully. Expanding it will provide our 
law enforcement with a more effective tool to keep our community safe and 
it is vital that the Assembly join with the Senate and Governor Cuomo by 
passing this legislation,” stated Senator Flanagan. 

“As a crime fighting tool, DNA is the 21st Century equivalent of a 
fingerprint,” Senate Majority Leader Dean G. Skelos said. “Senate 
Republicans fought to create the databank 18 years ago and we have 
successfully worked to expand it because it is the most powerful law 
enforcement tool to catch and prosecute criminals and protect victims. The 
Senate is partnering with the Governor to expand the databank and we have 
strong support from the law enforcement community and victims advocacy 
groups, and I hope the Assembly will join us in passing this measure to 
improve the safety of our citizens and communities.” 

Since its inception, DNA stored in the databank has been used to 
identify perpetrators in about 10,000 crimes, including 900 murders and 
3,500 sexual assaults. Since 2006, when the DNA databank was expanded to 
include 36 misdemeanors, law enforcement agencies have used the information 
to convict 1,460 criminals. 

The DNA databank expansion bill proposal is supported by law 
enforcement organizations across the state, including the New York State 
Sheriffs Association, District Attorneys Association of the State of New 
York, the New York State Association of Chiefs of Police, the New York 
State Troopers PBA, Downstate Coalition for Crime Victims, Joyful Heart 
Foundation, the Safe Horizon victim assistance organization and many other 
law enforcement groups throughout the state. 

Maile M. Zambuto, Chief Executive Officer of the Joyful Heart 
Foundation, a crime victims assistance organization, said: “Since the 
legislature last expanded the Databank in 2006, there have been 953 DNA 
matches in sexual assault cases. Each of those matches can represent an 
opportunity to hold perpetrators accountable for their crimes, give 
survivors the justice they deserve and spare thousands of New Yorkers the 
trauma and pain of sexual violence. We hope that the full legislature will 
join together to make a difference for survivors and the safety of our 
communities.” 

“The DNA evidence collected in sexual assaults and other cases, 
does not have much value unless it can be directly tied to a perpetrator. 
The expansion of the DNA Databank will help law enforcement apprehend those 
committing crimes and bring justice to those who have been victimized. 
Sexual abuse and other victims of violent crime have to have confidence 
that every crime fighting tool available is being used to bring them 
closure, and I hope the Assembly will join the Senate and Governor Cuomo in 
making it a reality in our state,” stated Laura A. Ahearn, Executive 
Director of Parents for Megan’s Law and the Crime Victim Center. 


Residents who would like to join Senator Flanagan in calling on the 
Assembly to provide this important crime fighting tool to law enforcement 
in New York State can visit Senator Flanagan’s web site at 
flanagan.nysenate.gov to sign an Internet petition to call on the Assembly 
to pass the expansion of the DNA databank. 

Work on Old Nichol's Road Following Bishop's Intervention

WASHINGTON — Following intervention by Congressman Tim Bishop to ensure that nearly $1 million in federal funds earmarked for road improvements in Smithtown could be disbursed, Bishop joined Smithtown Supervisor Pat Vecchio and Suffolk County Legislator John Kennedy to announce that overdue improvements to Old Nichols Road in Nesconset will proceed this year. Bishop secured $1 million for improvements to Old Nichols Road in 2004 and $1.5 million in 2008 for upgrades to Old Nichols Road and road repairs in the Nissequogue River Watershed. When both funding streams were combined to finance the Old Nichols improvements, an accounting glitch between the New York State Department of Transportation (NYSDOT) and the US Department of Transportation (USDOT) led to confusion over the amounts available. After Bishop’s intervention, USDOT re-examined financial records and certified that the full amount of $2.5 million minus nominal expenditures and annual rescissions remains available. With the assurance of federal funding, the Smithtown Highway Department said work should begin in June. “I am pleased that the federal funds I secured will move this project forward and make a real difference in public safety and quality of life in Nesconset,” said Congressman Bishop. “Bringing federal resources to the table to help solve local problems is a top priority for me.” “We are pleased that Congressman Bishop was able to get the funds released for their intended purpose,” said Supervisor Vecchio. “The people of Nesconset have waited a long time for this necessary project and I thank Congressman Bishop for cutting through the bureaucratic red tape so we can move forward,” said Legislator Kennedy.

Insider Trading Ban For Government Officials Passes House

WASHINGTON — Today, Congressman Tim Bishop voted in favor of banning Members of Congress and Executive Branch officials from using information gleaned in the course of their official duties to make stock trades. Bishop joined an overwhelming bipartisan majority of the House of Representatives in passing the ban, which was an amended version of a bill previously passed by the Senate. Bishop voted yes today to support the spirit of the legislation, but said he would have preferred that the House pass the version of the ban that he cosponsored, the Stop Trading on Congressional Knowledge (STOCK) Act (H.R. 1148). Bishop said the version passed today was weakened at the insistence of House GOP leadership, but he expressed confidence that the it would be improved during negotiations with the Senate on a consensus version of the insider trading ban.  “It is common sense that Members of Congress should not profit from what they learn during the course of their official duties,” said Bishop. “I support a robust prohibition of insider trading for high government officials and I am confident the Senate will push back against the efforts of House leadership to water down the ban.” The version of the trading ban passed in the House today weakened the Senate’s bill by deleting a provision that would require those who trade in political intelligence for profit to register with the government and report on their activities and eliminating a provision that gives law enforcement officials effective new tools to detect and prosecute public corruption.

Bishop Leads Push For Extension Of Payroll Tax Cut And Unemployment Insurance

WASHINGTON — Congressman Tim Bishop today led the Democratic charge on the House Floor to push for the extension of the payroll tax cut and unemployment benefits through the end of the year, as well as prevent a sharp drop in Medicare reimbursement rates. Republicans are deeply divided on whether to extend the payroll tax cut set to expire at the end of this month, despite the bipartisan consensus of economists that extending the cut will help the economy. Watch a video of Congressman Bishop’s speech on his YouTube channel: http://bit.ly/AxleDI Bishop introduced a Motion to Instruct members of the House and Senate currently working on an extension to complete their work by February 17, providing certainty to 160 million Americans that their paycheck will not shrink next month, extending a lifeline to Americans who have lost their job through no fault of their own, and reassuring seniors that they will be able to see the doctor of their choice. “Day in and day out, Members of this body come to the floor to speak about the level of uncertainty that is hindering the U.S. economy and stifling job growth,” Bishop said in a speech on the House Floor today. “Yet, when we contemplate the uncertainty created for consumers, small businesses, doctors and the unemployed driven by Congress’s inability to address the payroll tax extension, the SGR and unemployment benefits, our Republican friends are suddenly silent.” The 2% payroll tax cut would put $1,329 in the budget of the average Suffolk County family from March to the end of the year, according to data from the Congressional Joint Economic Committee. Bishop said Republican opposition to extending the tax cut, which led to a protracted standoff at the close of last year, may be motivated by a misunderstanding of how the tax cut would improve the ability of Americans to support the economic recovery. “As we’ve debated these issues for several months, we’ve seen the data and heard from economists who say extending the payroll tax cut and unemployment insurance is a good for American families, businesses and economic growth.  It isn’t the silver bullet to solving all of our nation’s problems, but it’s a step in the right direction, a step that can provide some relief to the unemployed and stimulate consumer spending, which is fundamental to improving the overall economy,” Bishop said.