Former CEO sentenced to more than 7 years for illegally exporting technology equipment to China, money laundering

WASHINGTON – The former CEO of a technology company was sentenced to 93 months in prison for illegally exporting sophisticated technology equipment to the People’s Republic of China (PRC) and laundering the proceeds from those activities. This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the FBI.

In addition to his prison sentence, Louis Brothers, 63, of Covington, Kentucky, must also pay a monetary judgment of $1.1 million.

Brothers, a former president and CEO of Valley Forge Composite Technologies, pleaded guilty to the offenses in July 2015. He admitted that from 2009 until 2013, he unlawfully exported microcircuits to the PRC. Under federal law, anyone exporting a defense article, including microcircuits, to the PRC must obtain the permission of the Department of State for the purposes of maintaining national security.

According to his plea agreement, Brothers intentionally avoided notifying the Department of State about his activities and labeled his shipments as “computer parts” in order to conceal the true identity of the items. Brothers further admitted that he falsified paperwork to make it appear the proceeds he received from his business with the PRC were actually profits from a business he owned in Kentucky.