2 Brothers Charged With Violating Federal Export Restrictions for Shipping Goods to China
Joe Sery, former owner and CEO of San Diego-based Tungsten Heavy Powder & Parts, and his brother, Dror Sery, were arrested and charged with violating federal export laws by shipping defense products listed on the U.S. Munitions List without obtaining a proper export license, the U.S. Attorney's Office for the Southern District of California said March 4. The Sery brothers' alleged actions violated export laws under the International Traffic in Arms Regulations. The brothers are charged with conspiracy to commit offenses against the U.S., exportation of defense articles without a license and criminal forfeiture. The latter charge has a maximum 20-year prison sentence and $1 million fine.
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From 2016 to 2019, Joe Sery allegedly drew up contracts with multiple aerospace and defense companies for his company, then obtained ITAR-controlled data from these partner companies to fulfill the contract's terms, the U.S. Attorney's Office said. The projects included construction of an Advanced Rapid Response Weapon, a 155-millimeter Bi-Modal Warhead, a R9# Warhead and a 81-millimieter Cowling Cone. The two brothers then allegedly shipped the contracted products to China, India and "elsewhere overseas," the U.S. Attorney's Office said.
“The indictment alleges that these brothers disregarded important regulations designed to keep sensitive information from falling into the hands of those who would harm America,” U.S. Attorney Randy Grossman said. “The U.S. Attorney’s Office will work together with our law enforcement partners to protect military technology."