In early March, the U.S. District Court for the Eastern District of Kentucky sentenced Louis Brothers of Kentucky to nearly eight years in prison and required that he forfeit $1.1 million in net proceeds from the illegal activities. Brothers, the former president and CEO of Valley Forge Composite Technologies, pleaded guilty in July 2015 to money laundering violations and violations of the Arms Export Control Act (AECA) in connection with the illegal export to China of microcircuits controlled by the International Traffic in Arms Regulations. Because these items, which can be used in military satellites and nuclear reactors, are controlled defense articles, they require authorization from the U.S. Department of State for export from the United States. Brothers intentionally avoided obtaining authorization for, or otherwise notifying the State Department of, these transactions. He also concealed his activities by falsely labeling the shipments and falsifying paperwork to make it appear that the proceeds of the illicit transactions were from a different source.
For additional information, see the DOJ press release and local media reports here and here.
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