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U.S. v. Shu Quan-Sheng

 
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Shu, Quan-Sheng
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DOJ Criminal
:
September 19, 2008
:
U.S. v. Shu Quan-Sheng
:
U.S. v. Shu Quan-Sheng, No. 2:08-00194 (E.D. Va. 2008)
:
In an unusual fact pattern, the government here charged the defendant, a U.S. citizen, with violating the FCPA while acting as an agent for a foreign company. Further, the DOJ charged Shu, the owner of a corporation, but not the corporation itself, presumably viewing the corporation as merely the alter ego of Shu. Finally, this case represents an example of unrelated investigations uncovering violations of the FCPA, as it originated in an illegal arms export investigation.
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Aerospace/Defense
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China
:
2005; 2006; 2007
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Government officials with China's 101st Research Institute (part of the China Academy of Launch Vehicle Technology)
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Shu Quan-Sheng ("Shu"), a U.S. citizen, is President, Secretary, and Treasurer of AMAC International ("AMAC"), a high-tech company located in Virginia with an office in China. In 2006, Mr. Shu offered bribes amounting to approximately $189,300 to Chinese government officials with the 101st Research Institute, a research institute of the China Academy of Launch Vehicle Technology, to induce the award of the hydrogen liquefier component of a space launch project to a French company that retained Mr. Shu as its representative in 2003. The representative agreement with the French company entitled Mr. Shu to a 10-15% success fee. From 2003 to 2007, Mr. Shu also improperly provided technical assistance and exported technical data to Chinese government entities involved in the design and manufacture of a space launch facility in China in violation of the Arms Export Control Act.
:
Anti-bribery (Domestic Concern), Anti-bribery (Issuer)
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Arms Export Control
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Cease and Desist, Imprisonment, Plea
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Forfeiture of commission payments from a French company to Shu's company, AMAC International, Inc.; 51 months imprisonment.
:
386,740
:
51
:
Agent of Issuer, Domestic Concern, Officer of Domestic Concern
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President
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U.S.
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Contract Procurement/Retention
:
4,000,000
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Direct, Sales Agent/Consultant
:
189,300
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China
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"Means or instrumentalities": The defendant made numerous telephones calls from his company in Norfolk, Virginia to China, thus satisfying the "means and instrumentalities" element.
:
No