Preet Bharara, the United States Attorney for the Southern District of New York; Sidney Simon, the Special Agent in Charge of the U.S. Commerce Department’s Bureau of Industry and Security’s Office of Export Enforcement New York Field Office (DOC); and George Venizelos, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI), today announced the arrest of Mark Henry, a United States citizen and a resident of Queens, New York, in connection with a scheme to illegally export defense articles and goods with military applications from the U.S. to Taiwan and China. Mark Henry, 49, was arrested earlier today at his home in Queens and was presented in Manhattan federal court before U.S. Magistrate Judge Gabriel Gorenstein this afternoon.
Manhattan U.S. Attorney Preet Bharara said, “As alleged, Mark Henry shipped sensitive military and dual-use materials in violation of federal laws that seek to prevent such materials from ending up in the wrong hands. His arrest today demonstrates, yet again, the seriousness with which law enforcement takes its responsibility to catch and prosecute those who attempt to export prohibited items and materials and to violate trade embargos.”
DOC Special Agent in Charge Sidney Simon, “Preventing the illegal export of sensitive U.S origin commodities that enhance the military capabilities of foreign nations is our top priority. We are constantly striving to maintain the technological advantage of U.S fighting forces. I applaud the cooperative efforts of the Justice and Commerce Departments and the FBI that led to today’s arrest.”
FBI Assistant Director in Charge George Venizelos stated, “The illegal export of our intellectual property and restricted military material may not grab headlines, but it presents serious implications for our nation’s security. Shipping restricted products might line your pockets, but it could also land you in prison.”
According to the allegations in the indictment unsealed today in Manhattan federal court:
From April 2009 through September 2012, Henry operated an export company based in New York City that shipped goods from suppliers located in the U.S. to customers in Asia—specifically China and Taiwan. Henry shipped military-grade materials that can be used as a protective coating for rocket nozzles, and which are designated as defense articles on the U.S. Munitions List, to customers in Taiwan. He also attempted to ship microwave amplifiers, which have both commercial and military uses and are listed on the Commerce Control List to China. Henry did not apply for or receive the requisite licenses for these shipments.
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The indictment charges Henry in three counts:
- Count one—conspiracy to violate the Arms Export Control Act
- Count two—a substantive violation of the Arms Export Control Act and the International Traffic in Arms Regulations
- Count three—an attempt to violate the International Emergency Economic Powers Act.
Count one carries a maximum sentence of five years in prison. Counts two and three each carry a maximum sentence of 20 years in prison. Henry’s case is assigned to U.S. District Judge Jesse M. Furman, and the defendant will be arraigned before Judge Furman tomorrow at 9:30 a.m.
Mr. Bharara praised the extraordinary investigative work of the New York Field Office of the DOC’s Bureau of Industry and Security’s Office of Export Enforcement and the New York Field Office of the FBI’s Counterintelligence Division. Mr. Bharara also thanked the U.S. Department of Justice’s National Security Division.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Aimee Hector and Michael Lockard are in charge of the prosecution.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.