Friday, August 13, 2010

Stealth design engineer found guilty of giving defense data to China



[caption id="attachment_10791" align="alignleft" width="300" caption="Stealth bomber"][/caption]

HONOLULU - GHN Editor - “Mr. Gowadia provided some of our
country’s most sensitive weapons-related designs to the Chinese
government for money. Today, he is being held accountable for his
actions."



Assistant Attorney General David
Kris spoke for the security team involved in the prosecution of Noshir
S. Gowadia, age 66,  in Honolulu this week.




While government officials assess
the leak of security documents referencing the War in Iraq to Wikileaks,
in Hawaii the issue of providing classified documents to China led to
Gowadia's conviction of five criminal offenses.




A criminal complaint filed against
Gowadia led to his initial arrest in October 2005.  The complaint stated
he had given national defense information to someone not entitled to
receive it over three years, according to indictments dated 2005, 2006
and 2007.

According
to court documents, Gowadia had been an engineer with Northrop Grumman
Corporation from approximately 1968 to 1986.  During that time he helped
develop the unique propulsion system and low observable capabilities of
the B-2 Spirit bomber.  This is often referred to as the "Stealth"
bomber. Gowadia also continued to work on classified matters as a
contractor with the U.S. government until 1997, when his security
clearance was terminated.

During
the trial, information provided the court maintained Gowadia took six
trips to the PRC to provide defense services in the form of design, test
support and test data analysis of technologies for the purpose of
assisting the PRC with its cruise missile system by developing a
stealthy exhaust nozzle and was paid at least $110,000 by the PRC.

The
jury convicted Gowadia of two specific transmissions of classified
information: a PowerPoint presentation concerning the exhaust nozzle of a
PRC cruise missile project and an evaluation of the effectiveness of a
redesigned nozzle, and a computer file providing his signature
prediction of a PRC cruise missile outfitted with his modified exhaust
nozzle and associated predictions in relation to a U.S. air-to-air
missile.

The
prosecution also produced evidence which documented Gowadia’s use of
three foreign entities he controlled, including a Liechtenstein charity
purportedly for the benefit of children, to disguise the income he
received from foreign countries.

In
addition to demonstrating that Gowadia under-reported his income and
falsely denied having control over foreign bank accounts for the two tax
years involved in his convictions, the evidence at trial revealed that
Gowadia had not paid any income tax since from at least 1997 until 2005
when he was arrested.

He
was also convicted of providing a design to the PRC of a low signature
cruise missile exhaust system capble of rendering a cruise missile
resistant to detection by infrared missiles.




Additional offenses included illegally retaining defense information, and filing false tax returns for the years 2001 and 2002.



The jury acquitted Gowadia of three other offenses alleging illegal communication of information to the PRC.



The
verdict was announced by David Kris, Assistant Attorney General for
National Security, and Florence T. Nakakuni, U.S. Attorney for the
District of Hawaii. The verdict followed six days of deliberation and a
40-day trial in the District of Hawaii.

Attorney
General Kris went on to say, " This prosecution should serve as a
warning to others who would compromise our nation’s military secrets for
profit. I commend the many prosecutors, analysts, and agents—including
those from the FBI and the Air Force—who were responsible for this
investigation and prosecution.”

“The
United States entrusts people with important and sensitive information
critical to our nation’s defense. Today’s verdict demonstrates that
there is a serious consequence to betraying that trust,” said U.S.
Attorney Nakakuni.

“The
FBI will continue to pursue anyone who treats America's national
security as a commodity to be sold for personal enrichment,” said
Charlene Thornton, Special Agent in Charge of the Honolulu Field Office
of the FBI.

“This
case is a superb example of interagency cooperation with one single
goal in mind: to protect Americans from harm. The successful prosecution
of Mr. Gowadia for espionage and other crimes highlights the many
contributions of AFOSI personnel and our partner organizations
worldwide,” said Colonel Keith Givens, Vice Commander, Headquarters,
U.S. Air Force Office of Special Investigations.

Chief
U.S. States District Judge Susan Oki Mollway set sentencing for Nov.
22, 2010. At that time, Gowadia faces the following maximum terms of
imprisonment.



  • Life
    imprisonment for each of two counts of willfully communicating
    classified national defense information to the PRC with the intent that
    it be used to the advantage of the PRC or to the injury of the United
    States.

  • Ten years’ imprisonment for each
    of three counts of willfully communicating classified national defense
    information to persons not entitled to receive it in the PRC and
    elsewhere, and one count of illegally retaining defense systems
    information at his Maui residence.

  • Ten
    years’ imprisonment for each of four counts of exporting technical data
    related to a defense article without an export license (in violation of
    the Arms Export Control Act).

  • Five years’ imprisonment for one count of conspiracy to violate the Arms Export Control Act.

  • Ten years’ imprisonment for one money laundering charge based on proceeds from the Arms Export Control Act violations.

  • Three years’ imprisonment for each of two counts of filing false tax returns for the years 2001 and 2002.



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