Virginia Physicist Sentenced To Serve 51 Months in Prison For Violating the FCPA and the Arms Export Control Act

14 April 2009 Publication

In April 2009, Shu Quan-Sheng (a naturalized U.S. citizen and President, Secretary, and Treasurer of AMAC International ("AMAC"), a high tech company located in Virginia with an office in Beijing, China) was sentenced to 51 months in prison for violating the FCPA and the Arms Export Control Act. In addition, Shu has already forfeited approximately $385,000 to the U.S. government in connection with the case. In November 2008, Shu pled guilty to a criminal information charging him with violating the FCPA in connection with bribes paid to Chinese officials (as well as violating the Arms Export Controls Act). Pursuant to the criminal information, Shu acknowledged offering, paying, promising and authorizing the payment of bribes to individuals employed by the People's Republic of China's 101st Institute (a government research institute within the China Academy of Launch Vehicle Technology) in order to obtain for himself, AMAC, and a French company (which engaged him as an agent) a contract for the development of a liquid hydrogen tank system. According to the criminal information, Shu offered a total of approximately $190,000 to the research institute officials. Thereafter the $4 million liquid hydrogen project was awarded to the French company that Shu represented.