Four Arrests Linked To Chinese Spy Ring

[Ryan Ruck]

Four Arrests Linked To Chinese Spy Ring

Four persons arrested in Los Angeles are part of a Chinese intelligence-gathering ring, federal investigators said, and the suspects caused serious compromises for 15 years to major U.S. weapons systems, including submarines and warships.

U.S. intelligence and security officials said the case remains under investigation but that it could prove to be among the most damaging spy cases since the 1985 one of John A. Walker Jr., who passed Navy communication codes to Moscow for 22 years.

The Los Angeles spy ring has operated since 1990 and has funneled technology and military secrets to China in the form of documents and computer disks, officials close to the case said.

The ring was led by Chi Mak and his wife, Rebecca Laiwah Chiu, along with Mr. Chi's brother, Tai Wang Mak, and his wife, Fuk Heung Li, officials said.

Key compromises uncovered so far include sensitive data on Aegis battle management systems that are the core of U.S. Navy destroyers and cruisers.

China covertly obtained the Aegis technology and earlier this year deployed its first Aegis warship, code-named Magic Shield, intelligence officials have said.

The Chinese also obtained sensitive data on U.S. submarines, including classified details related to the new Virginia-class attack submarines.

Officials said based on a preliminary assessment, China now will be able to track U.S. submarines, a compromise that potentially could be devastating if the United States enters a conflict with China in defending Taiwan.

Mr. Chi, an electrical engineer, also had access to details on U.S. aircraft carriers and once was aboard the USS Stennis. A Pentagon report made public earlier this year said China's military is building up capabilities to attack U.S. aircraft carriers.

China also is thought to have obtained information from the spy ring that will assist Chinese military development of electromagnetic pulse weapons -- weapons that simulate the electronic shock caused by a nuclear blast -- that disrupt electronics.

It also is thought to have obtained unmanned aerial vehicle technology from the spy ring.

All four persons were arrested yesterday and charged with theft of government property. Law-enforcement officials said that the charges are expected to be upgraded to espionage or espionage-related once the nature of the information involved is fully investigated.

Investigators seized hundreds of thousands of pages of documents and computer data from Mr. Chi's home in Downey, Calif., after the arrest.

Mr. Chi and his wife were born in China and are naturalized American citizens. Mr. Tai and his wife are resident aliens who came to the United States from China in May 2001.

The arrests were made after electronic surveillance revealed Mr. Tai and his wife planned to travel to Guangzhou, China, to pass to Chinese officials several CDs that contained Navy weapons data, specifically information on Quiet Electric Drive (QED) systems used in Navy warships, officials said. An FBI affidavit in the case described the QED technology as "extremely sensitive" and banned from export.

The affidavit stated that surveillance showed that Mr. Tai and his wife were "very nervous" and had discussed the risks of carrying the disks to China.

"They were funneling information to 2 PLA," one official said, referring to the military intelligence unit of the People's Liberation Army. "The Chinese now know more about our military than we know about their entire country."

Lawyers for the four arrested yesterday could not be reached for comment.

Investigators think Mr. Tai worked as either a courier or a spy handler with China's Ministry of State Security or the 2 PLA.

Intelligence officials said Mr. Chi held a secret-level security clearance and worked on more than 200 U.S. defense and military contracts as an electrical engineer with the defense contractor Power Paragon, a subsidiary of L3/SPD Technologies/Power Systems Group in Anaheim, Calif.

FBI Agent James E. Gaylord stated in an affidavit made public Monday that Mr. Chi had access to Navy technical records, schematics and other documents that, while unclassified, were "restricted" and barred from foreign distribution.

"Chi uses his workstation at Power Paragon to collect the information he has been tasked to provide to the PRC," Mr. Gaylord stated.

Mr. Chi obtained the information from his office and took it home, where it was copied on CDs and passed to Mr. Tai, who encrypted the data using a coding software program, the affidavit said. Mr. Tai had planned to take the encrypted disks to China on Oct. 28 to give them to an unidentified recipient.

[Ryan Ruck]

Suspected Chinese Spies Denied Bail

SANTA ANA, Calif. - A federal judge on Monday denied bail for two Chinese nationals accused of conspiring to steal sensitive documents on U.S. Navy warship technology and smuggle them to China.

Tai Wang Mak, a broadcast and engineering director for the Phoenix North American Chinese Channel, and his wife, Fuk Heung Li, were arrested Oct. 28 in Los Angeles as they prepared to board a flight to China.

In Li's luggage, authorities found a disk that contained information on U.S. technology designed to suppress the noise of submarine propulsion systems, said Assistant U.S. Attorney Deirdre Eliot. The disk had been encrypted with a Chinese code.

Mak's attorney, John Early, said prosecutors hadn't proved the information was classified and stressed that his client had not been charged with espionage.

[Ryan Ruck]

Simply unbelievable… I am at a loss for words…

Chinese Immigrants Face Single Count After Broad Allegations

LOS ANGELES (AP) - The federal government's case against three Chinese immigrants first accused of a broad plot to steal secrets involving U.S. warship technology yielded a single, dressed-down count of failing to register as foreign agents.

While government authorities said they may seek more charges, some counterintelligence analysts see parallels with other cases against alleged Chinese spies that eventually unraveled.

"There's one case after another where senior officials allege serious activities ... and then the case just falls apart and you end with minor-looking charges," Paul Moore, a former China chief analyst for the FBI, said Wednesday.

"This looks like small potatoes compared to what was originally alleged," he said.

Chi Mak, 65, of Downey, his wife and brother were Indicted Tuesday on the sole charge of acting as agents of a foreign government without prior notification to the U.S. attorney general. The brothers remained in custody.

Last month, however, all three suspects were accused in an FBI affidavit of stealing government property, aiding and abetting, transportation of stolen goods and conspiracy.

The initial accusations carry a maximum combined sentence of 25 years. In contrast, the charge filed this week could bring 10 years at most.

The affidavit said Chi Mak stole computer disks from Anaheim defense contractor Power Paragon, where he was lead engineer on a sensitive research project involving propulsion systems for Navy warships.

He and his wife, Rebecca Laiwah Chiu, 62, allegedly copied the information to CDs and delivered them to his brother, Tai Wang Mak, 56, who was scheduled to fly to Hong Kong on Oct. 28 before heading to Guangzhou, China, to meet a contact.

The indictment contained none of those allegations.

Prosecutors held off on more counts - at least for now - partly because the military data in question was highly sensitive but not classified, said Thom Mrozek, spokesman for the U.S. Attorney's office. Some information was openly discussed at conferences.

"We've charged them in the indictment with being agents of the People's Republic of China. That's a serious charge," Mrozek said.

Defense attorneys have maintained their clients' innocence, said they have no criminal record or refused to comment.

The fact that more severe counts - espionage, for example - weren't filed highlights the problems prosecutors have faced, according to intelligence specialists.

A Los Angeles case against Katrina Leung - a Chinese-American businesswoman accused of taking documents from the briefcase of her longtime FBI handler - was thrown out in January because of governmental misconduct.

In the Wen Ho Lee case, all but one of 59 counts accusing the former Los Alamos National Laboratory nuclear scientist of mishandling sensitive information were eventually dismissed and then-President Clinton apologized for his treatment.

Lee was held in solitary confinement for nine months then released in September 2000 after pleading guilty to a single felony count.

Rodger Baker, a senior analyst at the private intelligence firm Stratfor, said initial allegations are sometimes overblown because investigators tend to assume the worst in national security cases.

"There's a lot of concern about not jumping the gun," Baker said. "But there's equal concern about seeming that you're not doing anything."

I wonder if this is going to be "Wen Ho Lee Re-Deux"?

[Ryan Ruck]

FBI Expected To Testify In Case Against Alleged Chinese Agents

LOS ANGELES (AP) -- The case against three alleged Chinese agents is set to return to court Monday with testimony from an FBI official that could help explain why the government has filed only one criminal charge despite making sweeping claims of conspiracy and theft.

Chinese-American engineer Chi Mak, his wife, Rebecca Laiwah Chiu, and brother Tai Wang Mak pleaded not guilty Nov. 22 to charges that they were unregistered agents for China.

Each was indicted on a single count even though an affidavit submitted last month by FBI Special Agent James Gaylord alleged they had committed crimes ranging from stealing government property to conspiracy.

The initial accusations carried a maximum combined sentence of 25 years; the most recent counts could bring 10 years at most.

On Monday, Gaylord is expected to come under questioning from Tai Wang Mak's defense attorney, who is challenging the government's move to deny his client bond. Prosecutors also will argue their appeal against the court's decision to set bond at $300,000 for Chi Mak, who remains in custody.

Investigators allege that Chi Mak, 65, took computer disks from Anaheim-based defense contractor Power Paragon, where he worked on a sensitive research project involving propulsion systems for Navy warships.

He and his wife allegedly copied the information to CDs, encrypted the files and delivered them to 56-year-old Tai Wang Mak, who was scheduled to fly to Hong Kong on Oct. 28 before heading to Guangzhou, China.

The younger Mak and his wife, Fuk Heung Li, were arrested at Los Angeles International Airport as they prepared to board a plane. The CD was found in Li's luggage, authorities said.

Prosecutors have held off on more serious charges - espionage, for example - partly because the military data in question were highly sensitive but not classified.

Gaylord, a counterintelligence agent, has stated in court documents that Chi Mak admitted feeding information on Navy research to China since 1983, fully aware that it was sensitive and subject to export laws. Mak hoped it would help the Chinese government develop similar technology, Gaylord claimed.

Mak's attorney, Ronald Kaye, accused the government of mischaracterizing his client's statements and compared the case to recent Chinese spy trials that eventually collapsed.

"Why should the public accept the government's characterization of the evidence when it's been shown they'll prosecute these cases with any means necessary?" Kaye asked.

He noted that Mak, who worked in Hong Kong for Hong Kong Electric before emigrating in 1978, has no criminal record.

Investigators have said they recovered restricted documents on the DDX Destroyer, an advanced technology warship, that were marked "for official use only." Officials also allegedly found two lists in Chinese asking Chi Mak for documents about submarine torpedoes and other technology.

According to Gaylord, Chi Mak told investigators that his brother was giving the information to a researcher at the Chinese Center for Asia Pacific Studies at Zhongshan University in Guangzhou.

Authorities say the center conducts operations research for and receives funding from the People's Liberation Army. The researcher - Pu Pei-Liang, also known as David Pu - was believed to work for the government.

Mak also allegedly said that his brother, a legal resident who works for the Phoenix North American Chinese Channel, had voluntarily joined the PLA and served with a propaganda unit.

Tai Wang Mak's attorney has denied that accusation.

[Ryan Ruck]

China Sought US Sub Secrets To Conquer Taiwan: US Prosecutor

Prosecutors in the trial of US engineer Chi Mak said Wednesday that secret US submarine technology information he had tried to smuggle to China was aimed at helping it take control of Taiwan.

Assistant US attorney Greg Staples said the sensitive data on a computer disk Mak tried to provide China through his brother included information on Quiet Electric Drive, a technology under development to make submarines silent.

China's navy "is supportive of the re-taking of Taiwan (and) the chief impediment to retaking Taiwan is the 7th fleet of the US Navy," Staples said as the federal trial in Santa Ana, California, got underway.

The Chinese navy particularly needs to be able to find US submarines, he said.

"And that is why the Quiet Electric Drive is important."

But Mak's lawyer said he was only sharing information with other scientists and engineers.

"It's a case about technology exchange," attorney Marilyn Bednarski told the jury.

"Scientists and engineers get information from each other and work in a sharing way," she said.

"If someone shares something that's not export-controlled or if someone does and doesn't know it, it's not a violation of the law."

The 66-year-old engineer, born in Guangdong, China, was arrested in 2005 with his wife at his California home.

He had given an encrypted disk with the submarine and other data to his brother Tai Mak, who was arrested with his wife at the same time as they tried to board a flight in Los Angeles to China. The disk was found hidden in luggage, Staples said.

Tai Mak's son Billy was then indicted last year related to his help in encrypting the disk.

Chi Mak is charged with illegally acting as an agent of China in the United States in exporting weapons-related technology without an appropriate export license. He is also charged with making false statements.

But Mak, who has denied the charges, has not been charged with espionage, because the information on the disk was not officially classified.

In the trial Wednesday, prosecutor Staples said Mak, who worked at the engineering firm and defense contractor Power Paragon in Anaheim, California, rejected the defense claim that because the data was not classified, Mak was free to exchange it with the Chinese.

Staples said that Mak had been given intensive instruction in how to handle both classified and sensitive information, and that he should have applied first to the State Department for an export license.

"Barely nothing on these disks could be sent to China," he said.

But Bednarski said the government was exaggerating Mak's actions.

"The case is about an alarmist over-reaction. The case is about misconceptions and prejudice," she said.

Bednarski said Mak worked only on the earliest phase of the quiet submarine system, that it has never been tested, and that he planned to retire before the system design was completed.

"He was not an agent for the Chinese government."

[Ryan Ruck]

Chinese-Born Engineer Awaits Trial

As a top engineer at a major U.S. defense contractor, Chi Mak helped develop some of the most advanced and closely guarded naval technology in the world, including silent-running propulsion systems that can make submarines virtually undetectable.

Now, in a case that experts say could have serious implications for U.S. security, he is accused of stealing those secrets for the Chinese.

Prosecutors say the Chinese-born Mak was working for China from 1983 until his arrest two years ago, stealing hundreds of documents about a number of defense systems, including the weapons, nuclear reactors and propulsion systems aboard U.S. submarines.

The 66-year-old Mak is set to go on trial Tuesday on charges of conspiracy to export U.S. defense secrets to China, possession of property in aid of a foreign government and failure to register as a foreign agent. He could get more than 50 years in prison if convicted.

If the allegations are true, China may have gained critical information as it tries to develop an open-water fleet to challenge U.S. naval supremacy in Asia, said Richard Fisher, vice president of the International Assessment and Strategy Center, a nonpartisan think tank in Alexandria, Va.

"China's military capabilities would benefit tremendously from the kind of inside information that he's had access to," Fisher said. "If the Chinese are on the inside track on this one, then we are truly in an arms race."

The case is also troubling because the U.S. government might have to declassify evidence and present it to jurors to prove its case.

"This is the bad choice the government faces," said Paul D. Moore, who served for more than 20 years as the FBI's chief China analyst. "There are a number of people running around the United States who have committed espionage and gotten away with it because the government couldn't afford to lose the information they needed to prove the case."

In similar cases, prosecutors withhold evidence deemed too sensitive. Other times, they obtain special security clearances for the judge, jurors and defense attorneys to look at certain classified documents. But the bulk of the evidence must be aired in open court.

Prosecutors in the Mak case did not return calls for comment. Defense attorneys have undergone FBI background checks and received clearance to see certain government evidence.

Mak, a U.S. citizen since 1985, had secret clearance for a decade through his work with Power Paragon, an Anaheim-based subsidiary of the nation's sixth-largest defense company, L-3 Communications.

His attorney, Ronald Kaye, said the government has grossly exaggerated the evidence against his client. He said Mak would never do anything to hurt his adopted country.

"You have a highly regarded 66-year-old engineer who universally is seen as a great asset to our country. He's been a U.S. citizen for over 20 years. He's a homeowner," Kaye said. "Every person you turn to says he's the most generous, committed engineer in the company."

According to prosecutors, Mak took documents from Power Paragon, copied them to computer disks and encrypted them with the help of his brother, Tai Mak, and nephew, Billy Mak, before trying to pass them to a Chinese contact known as "Mr. Pu."

Tai Mak and his wife, Fuk Heung Li, were arrested in 2005 at the Los Angeles airport as they were about to fly to China.

Hidden in their luggage were encrypted disks containing copies of documents on a submarine propulsion system, according to court papers.

The propulsion technology suppresses noise to make submarines virtually undetectable underwater and is "one of the biggest secrets that we have in developments in submarine technology and anti-submarine warfare," Moore said.

Chi Mak was arrested several days later. During a search of his home, investigators found two torn-up notes asking him to get documents on a number of sensitive U.S. naval projects involving torpedoes, electromagnetic artillery, missile-detection and nuclear defense, according to court papers.

Investigators also seized documents on the DDX Destroyer, a next-generation, multi-mission warship as quiet as a submarine; electromagnetic launch systems for aircraft carriers; high-powered electromagnetic guns; and submarine-mounted kinetic energy projectiles, the court papers say.

The government also said it suspects Mak has been feeding information about Aegis-class battleships to China since the 1980s.

Investigators tapped the Maks' phones and installed video cameras in their homes. In one instance, Tai Mak allegedly called his Chinese contact and identified himself as being with the "Red Flower of North America," which the FBI believes is code for a Chinese intelligence operation.

Li, Tai Mak, Billy Mak and Rebecca Laiwah Chiu, the wife of Chi Mak, have all pleaded not guilty to the same charges as Chi Mak and await trial

Kaye explained Chi Mak's behavior by saying, "My client is committed to discussing and learning about technology - that's all."

[Ryan Ruck]

Engineer Goes To Trial In China Military Spy Case

China's efforts to use spying to gain U.S. military technology will get a close look during the trial of a Chinese-born defense contractor set to begin today near Los Angeles.

Chi Mak, an electrical engineer who worked on some of the U.S. Navy's most sensitive high-tech weapons, goes on trial in a federal court in Santa Ana, Calif., on charges of conspiracy to export U.S. defense secrets to China, possession of property in aid of a foreign government and failure to register as a foreign agent.

Federal law-enforcement and counterintelligence officials said the case against Mr. Mak and four others is one of the most significant Chinese intelligence-gathering cases in recent years after a string of failed China-spying cases. The FBI has come under fire for mishandling the 1999 case of Los Alamos nuclear scientist Wen Ho Lee, and the 2003 case of Los Angeles businesswoman Katrina Leung, who officials say spied for China while posing as an FBI informant.

Prosecutors plan to show that Mr. Mak and his brother Tai Mak were part of a ring that passed sensitive Navy technology to China through a military-funded research institute in Guangzhou.

Officials said that in 2001, Chi Mak gave his brother key details of the Navy's SPY-1 phased array radar, the heart of the Aegis battle management system used on almost all Navy warships. Tai Mak, a Phoenix Television engineer, was described by officials as a courier who passed the technology to China.

Chi Mak also was involved in developing the Navy's Quiet Electric Drive, a stealth-related technology for the next generation of warships. The Maks were arrested in October 2005 as, officials say, they sought to pass the drive technology to China. Chi Mak also is thought to have compromised the Navy's newest attack submarine, the Virginia class, by providing China with details of its onboard electrical system, which would make it easier for China to track the submarine.

Investigators say Chi Mak told them after his arrest that he supplied information to Pu Pei-liang, a researcher at the military-funded Chinese Center for Asia Pacific Studies (CAPS) at Zhongshan University.

Dave Szady, the FBI's chief counterspy until last year, said recently that the data in Mak case was mainly proprietary corporate trade secrets or export-controlled data and that the case "probably murdered the Navy" because of the loss of military technology. Chi Mak could wander the submarine manufacturer Electric Boat "as if he was one of their own," Mr. Szady said.

Both Maks were born in Guangzhou. Chi Mak was naturalized a U.S. citizen in 1985. Tai Mak still holds a Hong Kong passport, though he emigrated from there in 2001. FBI and Navy investigators concluded that Mr. Pu was the handler for a technology theft ring that included Chi Mak, Tai Mak, their wives and Tai Mak's son. The family members will be tried separately.

Key evidence for prosecutors is two task lists thought to be from Mr. Pu that were discovered during a search of Chi Mak's trash on Feb. 7, 2005. The shredded documents in Chinese revealed that Beijing directed Chi Mak to gather military technology, including a new electromagnetic launcher to be used on a future U.S. aircraft carrier. Documents related to the list were found in Chi Mak's home.

The case has been difficult for prosecutors, who were forced to back off spy charges after home searches uncovered mostly sensitive but unclassified weapons information that, although restricted for export, was not classified as secret or top-secret in order to make it easier for contractors to work on the weapons systems.

Chi Mak has pleaded not guilty. His attorney Ronald Kaye is expected to focus on the case involving no classified documents. He told the Associated Press that the government has exaggerated the evidence. U.S. officials said defense attorneys unsuccessfully tried to interview Mr. Pu and other Chinese officials.

Richard Fisher of the International Assessment and Strategy Center said the case shows how China targets U.S. military technology.

"This case is a perfect illustration of China's racist policy of recruiting Chinese-Americans to undermine the security of all other Americans," Mr. Fisher said.

[Ryan Ruck]

Espionage Trial Of Accused Chinese Spy Set To Begin

Prosecutors cast engineer Chi Mak as a secret foreign agent who used his position at a U.S. defense contractor to steal military secrets for China. Defense attorneys say that's an exaggeration, that Mak is a devoted American who would never harm his adopted country.

Those two portrayals of the 66-year-old will be presented to a jury as Mak's federal trial starts Tuesday in California. Mak, a U.S. citizen since 1985, is charged with conspiracy to export U.S. defense secrets to China, possession of property in aid of a foreign government and failure to register as a foreign agent. He could get more than 50 years in prison if convicted.

As a top engineer at Power Paragon, an Anaheim-based subsidiary of the nation's sixth-largest defense company, L-3 Communications, Mak helped develop some of the most advanced and closely guarded naval technology in the world, including silent-running propulsion systems that can make submarines virtually undetectable.

But prosecutors say Mak was also working for his native China from 1983 until his arrest two years ago, stealing hundreds of documents about a number of defense systems.

Mak allegedly took documents from Power Paragon, copied them to computer disks and encrypted them with the help of his brother, Tai Mak, and nephew, Billy Mak, before trying to pass them to a Chinese contact. Tai Mak and his wife, Fuk Heung Li, were arrested in October 2005 at Los Angeles International Airport as they prepared to travel to Hong Kong and China.

Hidden in their luggage were encrypted disks containing copies of documents on a submarine propulsion system, according to court papers.

Chi Mak was arrested several days later.

According to the FBI, Chi Mak told investigators his brother was giving the information to a researcher at a Chinese university center that conducts operations research for and receives funding from the People's Liberation Army.

During a search of Chi Mak's home, investigators found restricted documents on the DDX Destroyer, an advanced technology warship, according to court papers.

They also found lists in Chinese asking Chi Mak to get documents about submarine torpedo technology, electromagnetic artillery systems, weapon standardization, early warning technology used to detect incoming missiles, and defenses used against nuclear attack, the court papers say.

Chi Mak's lawyers have said the government has grossly exaggerated the evidence against their client, and he would never do anything to harm his adopted country.

"Every person you turn to says he's the most generous, committed engineer in the company," Mak attorney Ronald Kaye said recently. "My client is committed to discussing and learning about technology -- that's all."

Tai Mak, Li, Billy Mak and Rebecca Laiwah Chiu, the wife of Chi Mak, have all pleaded not guilty and await trial.

[Ryan Ruck]

Chinese-American Engineer Accused Of Defense Exports Hid China Connections, Says Prosecutor

A Chinese-born engineer who worked on U.S. naval technology sought to give China information on propulsion of future submarines, a federal prosecutor said Monday in urging jurors to convict the defendant of conspiring to export defense materials and other crimes.

"The defendant was spying for China," Assistant U.S. Attorney Craig Missakian said in closing arguments. "This man's life has been defined by one thing and that is hiding his connection to the People's Republic of China."

Chi Mak, 66, a naturalized U.S. citizen, has been on trial for six weeks on allegations that for years he took material from his employer and gave it to his brother to pass along to Chinese authorities.

He could be sentenced to more than 50 years in prison if convicted of conspiracy to export defense material to China, failure to register as a foreign agent, attempted and actual export of defense articles, and making false statements. His wife, brother and other relatives also have been indicted.

In his closing argument, defense attorney Ron Kaye denied that Mak was a spy bent on collecting military intelligence. His client did not compromise national security and had even turned down work on a nuclear submarine project in 2004 and other opportunities related to military affairs, the lawyer said.

"Speculation, nonsense. This is what they're trying to tell you because they got nothing," Kaye told jurors. "Don't be fooled, don't be scared."

Kaye described Mak as an "absent-minded professor" who kept sensitive documents around the house and had been duped by his brother and tricked into making a false statement by a Navy investigator.

Information involved in the case was available at conferences attended by Chinese academics and students, and would not help the Chinese regarding Navy submarines, Kaye argued.

The trial included testimony from FBI agents, Navy officials, encryption and espionage experts and Mak.

Some witnesses said Mak was hardworking during his two decades in the United States and was remarkable only for his thrift. He lived in a 700-square-foot (65-sq. meter) home despite a six-figure salary and once switched hotels to save $2 (euro1.5).

The government, however, said Mak's unassuming ways were part of a long-running conspiracy to take thousands of pages of documents from his employer, Power Paragon of Anaheim, and send the material to China with the help of family members.

"What the defendant was trying to do in essence was give the Chinese a guided tour of the engine room of the submarine of the future," Missakian said in his closing argument.

Missakian disputed the defense claim that the information was publicly available, saying the Defense Department had not approved its release.

The prosecutor added that Mak had received extensive training in export laws.

"If the document is in the public domain, why not fax it, why not e-mail it, why not send it by mail?" Missakian said.

Mak was arrested in 2005 in Los Angeles after FBI agents stopped his brother and sister-in-law as they boarded a flight to Hong Kong.

Investigators said they found three encrypted CDs in their luggage containing documents on a submarine propulsion system, a solid-state power switch for ships and a PowerPoint presentation on the future of power electronics.

Key to the trial was the government's allegation that Mak confessed to the conspiracy, and even named his so-called "handler" and specific restricted documents, during an untaped jailhouse interview two days after his arrest.

During the trial, Mak testified he never confessed during that interview, but admitted on cross-examination that he lied repeatedly in an earlier taped interview the night he was arrested. He also acknowledged he lied on U.S. immigration forms years before and in an application for a secret government clearance.

Kaye noted that Mak's alleged confession was not recorded, even though federal agents had recorded all other interviews in the case and had conducted video and audio surveillance of Mak and his family for months.

Kaye argued that the government concocted the confession to bolster its case.

Kaye also sought to distance Mak from his brother, Tai Mak, who is also charged in the case. The lawyer said Tai Mak may have used his brother to get information he could profit from commercially in China.

"We have two brothers," Kaye said. "One's lying. One isn't."

Kaye portrayed Chi Mak as a well-regarded, dedicated engineer and "a loyal American ... A man who has been defamed by this government."

Trials for Mak's brother and other family members begin later this month.

[Ryan Ruck]

Engineer Guilty in Military Secrets Case

Jurors convicted a Chinese-born engineer Thursday of conspiring to export U.S. defense technology to China, including data on an electronic propulsion system that could make submarines virtually undetectable.

Chi Mak also was found guilty of acting as an unregistered foreign agent, attempting to violate export control laws and making false statements to the FBI. Prosecutors had dropped a charge of actually exporting defense articles.

When the verdict was read, Mak at first showed no emotion but then appeared to hold back tears as defense attorney Marilyn Bednarski teared up and rubbed his back. Defense attorney Ron Kaye's face was flush.

Mak faces up to 35 years in prison when he is sentenced Sept. 10.

The government accused Mak, a naturalized U.S. citizen, of taking thousands of pages of documents from his defense contractor employer, Power Paragon of Anaheim, and giving them to his brother, who passed them along to Chinese authorities over a number of years.

Mak, 66, was arrested in 2005 in Los Angeles after FBI agents stopped his brother and sister-in-law as they boarded a flight to Hong Kong.

Investigators said they found three encrypted CDs in their luggage that contained documents on a submarine propulsion system, a solid-state power switch for ships and a Power Point presentation on the future of power electronics.

Chi Mak's wife, brother and other relatives also have been indicted and are to go on trial together June 5.

Mak acknowledged during the trial that he copied classified documents from his employer and kept copies in his office. He maintained he didn't realize at the time that making the copies was illegal.

Kaye said the defense team still believes Mak is innocent.

"We believe the facts of the case have been manipulated, and we believe Mr. Mak didn't necessarily get a fair trial," Kaye said.

In many instances, the government was allowed to present classified information to U.S. District Judge Cormac Carney in his chambers, and the defense team did not receive some classified information about a request by the FBI to bug Chi Mak's house, Kaye said.

"We were confident from the start and we're very happy with the verdict," Assistant U.S. Attorney Greg Staples said.

Staples said the government may use the verdict to try to negotiate plea bargains with Mak's indicted family members, who pleaded not guilty.

The six-week trial featured testimony from a parade of FBI agents, U.S. Navy officials and encryption and espionage experts.

Key to the case was the government's allegation that Mak confessed to the conspiracy - and even identified his Chinese government handler and specific restricted documents - during an untaped jailhouse interview two days after his arrest.

Mak testified he never confessed during that interview, but admitted that he lied repeatedly in an earlier taped interview about the number of times he had visited China and when he told authorities he didn't have friends or relatives there. He said he felt intimidated during the interrogation.

"This is why I lied," he said. "They were pushing me that night."

Mak's attorneys had focused on the propulsion system documents found in his brother's luggage at Los Angeles International Airport.

Mak said he believed he was doing nothing wrong by giving the documents to his brother to take out of the country because they were papers that had been presented previously at international conferences. The government, however, alleged the documents were export-controlled and couldn't fall into foreigners' hands.

[Ryan Ruck]

Sub Technology Revealed In Court During Spy Appeal

Details of U.S. Navy advanced engine-silencing technology for submarines were disclosed in court documents last week during an appeal hearing for convicted Chinese spy Chi Mak.

A federal judge in California last week refused a new trial for the Chinese-born defense contractor who was convicted last year of conspiring to export defense technology to China.

U.S. District Judge Cormac Carney rejected a motion from Mak that said the laws he violated were vague and methods used during trial by prosecutors were improper. Sentencing was set for March. Mak could receive a maximum prison term of 45 years.

Meanwhile, relatives of Mak, including sister-in-law Fuk Li and nephew Billy Mak, were arrested by Immigration and Customs Enforcement agents on Wednesday and are being deported, an ICE spokeswoman said.

The two relatives pleaded guilty last summer to related spy charges. The convictions opened the way for ICE to initiate deportation proceedings.

"This woman and her son freely admitted their role in a chilling scheme to turn over sensitive defense information to the Chinese," said Jennifer Silliman, deputy special agent in charge of the ICE office of investigations in Los Angeles. "Given their reckless disregard for our nation's security, ICE's goal is to remove them from the United States and ensure they will never again be able to call their adopted country home."

Chi Mak, his wife, Rebecca Laiwah Chiu, his brother Tai Mak and Tai Mak family members Fuk Li and Billy Mak were arrested in 2005 as part of a spy ring that funneled defense technology to China, including details of U.S. submarine and warship technology.

Tai Mak and Fuk Li were arrested Oct. 28, 2005, at Los Angeles International Airport as they sought to travel to Hong Kong carrying a computer disk that U.S. officials said contained restricted technology for the Navy's Quiet Electric Drive (QED) technology.

FBI agents also arrested a Chinese Ministry of State Security official operative at the airport as the intelligence officer videotaped the couple's arrest. The officer was later released.

Mak's motion to retry or dismiss the case stated that a U.S. government witness improperly testified about the QED, which uses special technology to dampen engine noise, a key strategic technology that requires a license to export and is barred from transfer to China.

A rebuttal document written by Assistant U.S. Attorney Gregory W. Staples countering the retrial motion stated that QED is an electrical process where "step-mode switching is combined with pulse-width modulation to create a so-called perfect sine wave." That process is called "cascading multi-level inverter" and "produces quieter motors."

"The QED document that [Mak] was convicted of attempting to pass included a discussion of the QED/ inverter technology but was not limited to it," the document stated. "Rather, that document discussed a particular topology or methodology of powering a submarine."

Judge Carney stated in his ruling that QED is meant to "reduce harmonic distortion from an engine, thereby making the engine run more quietly."

It is not known whether China obtained the silencing technology from the Mak family spy ring. U.S. intelligence officials said the arrests were ordered in 2005 because of Navy concerns that China would obtain what the government had said is sensitive but unclassified technology.

[Ryan Ruck]

Judge Wants Reporter To Reveal Sources In Spy Case

A Washington Times reporter has been subpoenaed by a federal judge who wants him to reveal the sources for a story he wrote about an engineer convicted of conspiracy to export U.S. defense technology to China.

National security reporter Bill Gertz was ordered to appear before U.S. District Judge Cormac Carney in June, the newspaper reported Saturday. The judge has also requested e-mail messages, files and correspondences.

Gertz cited U.S. government sources in a 2006 story saying that Justice Department officials approved an indictment against Tai Mak and that four of Mak's relatives would also be charged.

Mak's attorneys had objected to Gertz's story, contending the government violated a federal rule barring federal officials from giving information about grand jury proceedings to outsiders. Carney ordered an investigation to determine who leaked the information.

"We will be presenting our case to the judge and we remain hopeful that he will be receptive to the arguments we present to him in trying to preserve Bill's and the Times' First Amendment right to report the news and his other legal rights as well," Times executive editor John F. Solomon said.

The four family members were eventually indicted. All have pleaded guilty to related offenses in exchange for leniency. Mak is serving a 24-year sentence in federal prison.