Chinese government officials with the 101st Research Institute, a research institute of the China Academy of Launch Vehicle Technology.
Date of Conduct
2005 to 2007
Nature of Business
Contract for a hydrogen liquefier project on behalf of a French company. Shu Quan-Sheng (“Shu”), a U.S. citizen, was President, Secretary, and Treasurer of AMAC International (“AMAC”), a high-tech company located in Virginia with an office in China.
Influence to be Obtained
In 2006, Shu offered bribes amounting to approximately $189,300 to Chinese government officials with the 101st Research Institute to induce the award of a hydrogen liquefier project to a French company that retained Shu as its representative in 2003. The representative agreement with the French company entitled Shu to a 10-15% success fee. From 2003 to 2007, Shu also improperly provided technical assistance and exported technical data to Chinese government entities involved in the design and manufacture of a space launch facility in China, in violation of the Arms Export Control Act.
Enforcement
The government filed a complaint against Shu on September 19, 2008, alleging one count of violating the FCPA and two counts of violating the Arms Export Control Act. Shu was arrested on September 24, 2008, and a detention hearing held on September 29, 2008 set his bond at $100,000. On November 12, 2008, Shu pleaded guilty to all three counts alleged in the government’s complaint. On December 18, 2008, the court ordered Shu to forfeit $386,740, the commission payments he received as the representative of the French company. On April 7, 2009, the court sentenced Shu to 51 months in prison, to be followed by a two year supervised release.
Amount of the Value
Approximately $189,300.
Amount of Business Related to Payment
Approximately $4 million.
Intermediary
Agent.
Total Sanction
$ 7,500
Compliance Monitor
No
Reporting Requirements
No
Case is Pending?
No
Defendants
Shu Quan-Sheng
Citation
United States v. Shu, No. 2:08-cr-00194 (E.D. Va. 2008).
Date Filed
09/19/2008
Filed Under Seal
No
FCPA Statutory Provision
Anti-Bribery
Other Statutory Provision
Arms Export Control Act.
Disposition
Plea Agreement
Defendant Jurisdictional Basis
Domestic Concern, Agent of Issuer, Agent of Domestic Concern
Defendant's Citizenship
United States
Individual Sanction
3-Years Probation; $7,500 Criminal Fine.
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