Sudarshan Arraigned on IEEPA, Arms Export Control Act

Parthasarathy Sudarshan, CEO of Cirrus Electronics, was charged on Tuesday with shipping restricted weapons technology to the Indian government.^[1] He was arraigned before a U.S. magistrate judge on charges of smuggling technology linked to development of aircraft, missile and aerospace systems.^[2]

Assistant U.S. Attorney Jay Bratt asserted that Sudarshan was the "brains behind the operation" that ordered computer equipment from U.S. manufacturers using falsified documents about their destinations.^[3] It is alleged that between 2003 and 2006, Sudarshan was purchasing prohibited equipment for three Indian government agencies: the Vikram Sarabhai Space Centre, which researches spacecraft and ballistic missiles; Bharat Dynamics Ltd., a key agency in the nation's guided missile program; and the Aeronautical Development Establishment, which is developing the Tejas combat jet.^[4] The U.S. Commerce Department carefully restricts exports to these agencies.^[5]

“This case clearly demonstrates that the United States will aggressively investigate and prosecute those who illegally procure and export components for space launch vehicle and ballistic missile programs” said Darryl Jackson, assistant secretary for export enforcement at the U.S. Commerce Department.^[6]

Sudarshan and his company’s international sales manager, Mythili Gopal, were arrested on March 23 following joint investigations by the FBI, U.S. Commerce Department, U.S. Customs, and the INS.^[7] Sudarshan is facing a 15-count indictment, among other things they were charged with acting as “illegal agents of a foreign government” and violating the International Emergency Economic Powers Act (IEEPA) and the Arms Export Control Act.^[8]

Arms Export Control Act
The Arms Export Control Act is codified at 22 U.S.C. § 2778. Under this section it is illegal for a person to export articles which are designated on the US Munitions List without first obtaining a license or written authorization from the Department of State.^[9] The punishment for violating this section is a fine of up to $1,000,000, imprisonment for up to 10 years, or both.^[10]

We have previously discussed IEEPA in our National Security Blog, here

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^[1] Singapore Man Accused in Shipping Scheme, AP (via Forbes.com), Apr. 5, 2007, available at http://www.forbes.com/feeds/ap/2007/04/05/ap3588198.html (last visited Apr. 5, 2007).
^[2] Top Indian official at US firm charged with shipping restricted weapons tech, Daily Times (Pakistan), Apr 5, 2007, available at http://www.dailytimes.com.pk/default.asp?page=2007%5C04%5C05%5Cstory_5-4-2007_pg7_45 (last visited Apr 5, 2007).
^[3] Forbes, supra note 1.
^[4] Id.
^[5] Id.
^[6] Daily Times, supra note 2.
^[7] Id.
^[8] Id.
^[9] 22 U.S.C. § 2778(b)(1)(A)(ii)(III).
^[10] Id. § 2778(c).