NC businessman pleads guilty to trying to send technology with military uses to China
The owner of a Raleigh-based company pleaded guilty in federal court on Friday to attempting to sell technology with military applications to China without a required license, according to a news release from the U.S. Department of Justice.
David C. Bohmerwald, 63, the owner of Components Cooper Inc., was formally charged with violating the Export Control Reform Act in October. That law, passed in 2018, aims to increase control over emerging and foundational technologies.
Bohmerwald pleaded guilty before U.S. District Judge Terrence Boyle in Raleigh. He now faces a maximum penalty of 20 years in prison, the Justice Department news release said.
“North Carolina is home to cutting-edge technologies that fuel our economy, improve our lives, and are vital to national security. But our status as a major tech hub also makes us a target, as America’s foreign adversaries seek to acquire sensitive tech to advance their military might and interests around the world,” acting U.S. Attorney Daniel Bubar said in a statement.
“We’ve launched a multi-agency Disruptive Technology Strike Force cell to shut down international schemes that smuggle sensitive technology and IP to America’s adversaries. This case is just one example, exposing a scheme to evade U.S. export laws by shipping nearly $20,000 worth of accelerometers with missile applications from North Carolina to the People’s Republic of China,” he said.
Bohmerwald purchased 100 accelerometers from a U.S.-based electronics company and then attempted to export the devices to a company in China, the news release said.
The accelerometers can be used for various purposes, including research and development as well as defense applications, according to the release. One way they can be used for military purposes is to help missiles fly more accurately and measure the precise impact of munitions on structures, the release stated.
Intercepting the package
The U.S. electronics company alerted law enforcement after Bohmerwald’s suspicious purchase of accelerometers. He claimed they were for a Missouri customer, but the Missouri company told federal agents they had no order with Bohmerwald.
After receiving the devices, Bohmerwald dropped two packages at a local FedEx store, one addressed to a Chinese business. An agent with the Department of Commerce intercepted the package, discovering the 100 accelerometers inside with no export license on file.
Bohmerwald had also undervalued the shipment at $100, though its true value was nearly $20,000. In interviews, he admitted acquiring the technology for a Chinese company, knowing it was export-controlled and required a license, according to the news release.
According to court documents, Components Cooper Inc. has existed since May 2018 and lists its business as electronic sales. Its sole employee was Bohmerwald. The company has been associated with at least 26 exports, which have gone to locations in Canada, Switzerland, the United Kingdom, Hong Kong and China.
Those exports were either integrated circuits or electronic components, court records show.
