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June 9, 2004
The United States Attorney's Office for the Northern District of California announced today that Berkeley Nucleonics Corporation, also known as BNC Corp. ("BNC") pled guilty and was sentenced today to pay a $300,000 criminal fine and be subject to five years of probation for willfully violating a license, order or regulation promulgated under the International Emergency Economic Powers. Specifically, BNC Corp. exported a pulse generator to the Bhaba Atomic Research Center, which is a division of the Government of India's Department of Atomic Energy, without applying for or obtaining a license as required by the United States Department of Commerce. The sentence was handed down by U.S. District Court Judge Phyllis J. Hamilton immediately following BNC's guilty plea to violating Title 50, United States Code, Section 1705(b) and 15 Code of Federal Regulations, Sections 736.2 and 764.2.
BNC of San Rafael, California was indicted by a federal grand jury on August 28, 2001. BNC was charged with one count of conspiracy in violation of Title 18, United States Code, Section 371 and six counts of violations of Export Administration Regulations regarding exports to India in violation of Title 50, United States Code, Section 1705(b). Two former employees have already pleaded guilty to crimes related to this indictment.
The Department of Commerce, through its Bureau of Export Administration, regulates the exportation of goods and technology or software as necessary to protect the national security, foreign policy, nonproliferation, and short supply interests of the United States through the promulgation of regulations known collectively as the Export Administration Regulations (EAR). The EAR prohibits the export of pulse generators, such as the one shipped by BNC, from the United States unless authorized by the United States Department of Commerce. Pulse generators, such as those shipped by BNC, are devices that put out bursts of electricity and are used for calibrating radar or nuclear instruments. Pulse generators also have military applications.
The Bureau of Export Administration also publishes an Entity List that forbids shipments of commodities from the United States to those entities on the list without the issuance of a validated license from the United States Department of Commerce. Bhaba Atomic Research Center at the Department of Atomic Energy in India appears on the Entity List.
According to the plea agreement, BNC shipped an 8020 pulse generator to the Bhaba Atomic Research Center at the Department of Atomic Energy in India knowing that a license would be required for the shipment based on the facts that the 8020 pulse generator was subject to the EAR and the Bhaba Atomic Research Center was on the Department of Commerce's Entity List. Despite knowing the licensing requirements for goods subject to the EAR and shipments to entities on the Entity List, BNC shipped the 8020 pulse generator without applying for or obtaining a license from the Department of Commerce.
Judge Hamilton sentenced BNC to a fine of $300,000 and five years of probation. The maximum statutory fine for this offense is $500,000.
The prosecution was the result of a 22-month investigation by the United States Department of Commerce. Candace Kelly is the Assistant U.S. Attorney who prosecuted the case with the assistance of Helen Yee.
A copy of this press release may be found on the U.S. Attorney's Office's website at www.usdoj.gov/usao/can. Related court documents and information may be found on the District Court website at www.cand.uscourts.gov or on http://pacer.cand.uscourts/gov.
All press inquiries to the U.S. Attorney's Office should be directed to Assistant U.S. Attorney Matthew J. Jacobs at (415)436-7181.
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