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Feds: TVA Executive Traded Nuclear Information For Cash In Chinese Espionage Case (knoxnews.com)

Posted by BeauHD on from the two-count-indictment dept.

mdsolar quotes a report from Knoxville News Sentinel: An East Tennessean who served as a senior manager in the Tennessee Valley Authority's nuclear program swapped information with one of China's top nuclear power companies in exchange for cash, according to federal court records unsealed Thursday. The U.S. Attorney's Office in Knoxville on Thursday announced an espionage conspiracy indictment against China General Nuclear Power, Chinese nuclear engineer Szuhsiung 'Allen' Ho, and Ho's firm, Energy Technology International. Prosecutors said Ho conspired with the companies to lure nuclear experts in the U.S. into providing information to allow China to develop and produce nuclear material based on American technology and under the radar of the U.S. government. Ho was taken into custody in Atlanta on Thursday afternoon and will be returned to U.S. District Court in Knoxville to face the two-count indictment. The indictment consists of one count of conspiracy to illegally engage and participate in the production and development of special nuclear material outside the U.S. and one count of conspiracy to act in the U.S. as an agent of a foreign government.

52 of 98 comments (clear)

  1. Sounds bogus, another Nashir Gowadia case? by Anonymous Coward · · Score: 1, Insightful

    Let's consider that mainland China has been a nuclear weapons power since 1964 and consistently maintains a small, app. 400 warhead stockpile. (The absolute minimum needed for deterrence, in order not to let the "military-industrial complex" overburden their economy, as opposed to the 10-12.000 nuke powers of USA and USSR during the Cold War).

    Therefore what is the scope of this investigation? Trying to prevent P.R.C. from extending their scope of nuclear-electric energy production, so they cannot fight coal-burning pollution and global warming? Trying to slow their nuclear-medical capability so that asian cancer patients die earlier?

    1. Re:Sounds bogus, another Nashir Gowadia case? by Dutch+Gun · · Score: 5, Insightful

      I love how the sympathy oozes for the poor Chinese, while at the same time our intrepid AC launches a counter-attack against the investigator. And throwing in a reference to global warming was a nice touch. Gosh, if we really cared about the planet, maybe we should share all our nuclear technology with them. Oh, and yes, *not sharing* our nuclear tech obviously means we want all the Chinese to die of cancer. CANCER, I tell you!

      This is really some first-class shilling here. *golf clap*

      --
      Irony: Agile development has too much intertia to be abandoned now.
    2. Re:Sounds bogus, another Nashir Gowadia case? by hey! · · Score: 4, Insightful

      Except there's been a long history of bogus espionage cases against Chinese scientists, going all the way back to Quan Xuesen, one of the founders of the JPL. We suspected that he was sharing his knowledge with China, so we exiled him to China, where he became the father of the Chinese missile and space programs.

      There's only two forces in this world that produce behavior that fatuous: love and hate. And it comes to China we've got it bad both ways. It's like our relationship with Russia would be if we had a Russian restaurant in every town and we flocked to see movies with Russian action stars.

      I don't automatically assume anything Americans do about China makes any sense. We're like a guy who keeps having massive breakups with the same girl but then somehow always end up back with her. China just makes us do crazy shit.

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    3. Re:Sounds bogus, another Nashir Gowadia case? by khallow · · Score: 2, Interesting

      Except there's been a long history of bogus espionage cases against Chinese scientists, going all the way back to Quan Xuesen, one of the founders of the JPL. We suspected that he was sharing his knowledge with China, so we exiled him to China, where he became the father of the Chinese missile and space programs.

      Which, needless to say, is a strong indication he really was spying for the Chinese.

    4. Re:Sounds bogus, another Nashir Gowadia case? by gtall · · Score: 2

      Military industrial complex? I presume this is a reference to the U.S. Look at the federal budget, approx. $600 billion for defense, and $3.1-2 trillion for everything else. Of that, barely $200 goes for acquisitions, the rest is salaries, physical plant, etc. The U.S. economy is roughly $17 trillion. So you think $200 billion is going to swing a $17 trillion economy?

      Ever look at defense contractors recently? They are now diversified as defense isn't big enough for them.

      There hasn't been a military-industrial complex in the U.S. since the 1980s.

    5. Re:Sounds bogus, another Nashir Gowadia case? by Dutch+Gun · · Score: 4, Insightful

      Bogus industrial espionage cases? Oh, please. There have been dozens of fairly high-profile Chinese industrial espionage cases over the last few decades, and the notion that these are all trumped up charges seems pretty damned unlikely. I mean, what exactly would the point of that be? What's the motive? It gains the US nothing to make false charges against Chinese nationals.

      We certainly do have a schizophrenic relationship with China. It's not hard to figure out, though. Culturally and politically, they're certainly not our friends, if not exactly outright enemies. However, we're so invested with them economically that they can pretty much get away with anything, so long as the damage is only economic in nature and it doesn't actually outweigh the benefits of that economic relationship.

      The economic ties we have are probably a good thing, as it prevents political tensions from ever really escalating too far, but it's a bit infuriating to see how much they can also get away with with few repercussions.

      --
      Irony: Agile development has too much intertia to be abandoned now.
    6. Re:Sounds bogus, another Nashir Gowadia case? by Anonymous Coward · · Score: 1

      Reactors designed and construction started before most of the current batch of slashdotters were born. In fact are of designs we no longer use or even allow to be built because they suck. It's industrial espionage but state secrets for nuclear weapons it ain't. Especially when the other guys already have a standing nuclear arsenal.

      It's an election year so they gotta beat the ever loving fuck out of that war drum.

    7. Re:Sounds bogus, another Nashir Gowadia case? by stilwebm · · Score: 1

      Except there's been a long history of bogus espionage cases against Chinese scientists, going all the way back to Quan Xuesen, one of the founders of the JPL. We suspected that he was sharing his knowledge with China, so we exiled him to China, where he became the father of the Chinese missile and space programs.

      Your point may be valid in general, though in this specific case, the accused is from Taiwan and naturalized as a U.S. citizen, as the spelling of his name and a quick Google search confirmed. It's highly unlikely we would target and exile a Taiwanese born U.S. citizen as if they were from People's Republic of China.

    8. Re:Sounds bogus, another Nashir Gowadia case? by tsqr · · Score: 1

      Therefore what is the scope of this investigation?

      Don't get carried away. The scope is to prosecute someone who violated several rather serious Federal laws.

    9. Re:Sounds bogus, another Nashir Gowadia case? by ShanghaiBill · · Score: 3, Informative

      Which, needless to say, is a strong indication he really was spying for the Chinese.

      Not really. The 1950s were a time of totalitarian Maoism, and millions were starving during The Great Leap Forward. He had little choice but to do the bidding of the Chinese government. There was no evidence that he committed any espionage will he was in America, nor was he ever even accused of that. He was just accused of having "communist sympathies". His return to China was controversial at the time, and some high level people thought it was extremely stupid. But McCarthyism was raging in America at the time, and common sense was in short supply.

    10. Re:Sounds bogus, another Nashir Gowadia case? by Anonymous Coward · · Score: 4, Interesting

      Not only that - but the Nuclear Industry - as far as generating power and operating reactors safely and economically - they all share information widely and openly on how to achieve those aims, because they all know that the nuclear power industry as a whole rises and falls based on the performance of all of them, and a single bad operator can ruin the reputation and the industry for 10+ years (looking at you - Japanese operators).

      I'm really concerned that law enforcement might not know the difference between "technology secrets" and "operational knowledge that is freely shared between operators in all countries".

      It really hinges on this particular undefined statement:

      > "development and production of special nuclear material" ..however that's immediately followed by this paragraph:

      > " the TVA executive provided Ho with Florida Power & Light "information regarding nuclear power plant outage times" in 2004 for use at China General's Daya Bay Nuclear Power Plant "

      That sounds exactly like the type of information that operators throughout the world share amongst each other and work hard to help one another do better at!

      But evil Chinese citizen not registered as an agent of a foreign power ... oooooh. Anyway, time will tell. Hope he has a good lawyer who knows how the industry operates.

    11. Re: Sounds bogus, another Nashir Gowadia case? by WindBourne · · Score: 2

      Wow, are u ever a fuck up. After the large earthquake triggered by their new reservoir, it showed a number of things. The first was that 1000+ ppl came pouring out from underground wearing nuke bunny suits. Why? It was a nuke site that was not publically declared. In addition, some 3000+ miles of 4-6 car wide tunnels was exposed, that China then admitted to. And as to nuke tech, America's is very advanced to what China had. And as to comparing to others accused of spying, note that he was not found innocent. Just that the evidence was not overwhelming for what the feds were willing to show.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    12. Re: Sounds bogus, another Nashir Gowadia case? by WindBourne · · Score: 1

      I really do not believe that he was a spy. He was not a fan of the Communist gov, and when he was deported to China, it was a case of work for the gov or stay in prison.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    13. Re: Sounds bogus, another Nashir Gowadia case? by WindBourne · · Score: 1

      I have already dealt with 1 spy that was tawain born chinese, but wanted to sell itared equipment to Chinese gov. He was willing to give us millions just to 'borrow' it for a time.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    14. Re: Sounds bogus, another Nashir Gowadia case? by WindBourne · · Score: 1

      Actually no. All Western nations limit nuke tech trade. We will trade amongst each other, but we do not expect that canada, Britain, France, Germany, or Japan to be dropping nukes on each other.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    15. Re: Sounds bogus, another Nashir Gowadia case? by WindBourne · · Score: 1

      But obama is not being reelected, so that is not an issue.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    16. Re:Sounds bogus, another Nashir Gowadia case? by radarskiy · · Score: 1

      " a strong indication he really was spying for the Chinese."

      It's only a strong indication that he needed a job. You can't read much into the bare fact that a rocket scientist got a job in rocket science.

    17. Re: Sounds bogus, another Nashir Gowadia case? by WindBourne · · Score: 1

      I was under the impression that he was forced to go to China and was not allowed the option of Taiwan.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    18. Re: Sounds bogus, another Nashir Gowadia case? by khallow · · Score: 1

      And I'm under a different impression. Looking at the Wikipedia article, it looks like he could have stayed in the US as well. Having said that, various prominent US scientists and politicians did publicly defend him.

  2. Put him to death by Anonymous Coward · · Score: 1

    Seriously. How is this not treason? Trading nuclear secrets to a foreign power sounds like treason to me. And the death penalty can legally be used in treason cases. So, I ask, why is the TVA executive not being charged with treason?

    1. Re: Put him to death by Anonymous Coward · · Score: 1

      The proper plural noun would be Untermenschen . "untermensch" is not a collective noun.

      But thank you for showing that you are not German, even though you are using German terminology in lieu of the English term "subhuman(s)".

    2. Re:Put him to death by Megol · · Score: 1

      That would be trivial to understand if you'd know what treason is defined to be. Go google it.

    3. Re:Put him to death by l0n3s0m3phr34k · · Score: 2

      Because China isn't considered an "enemy" of the USA. Their a competitor, for sure, and use "unethical" ways of gaining information...but not considered an enemy per the State Department.

    4. Re:Put him to death by 110010001000 · · Score: 2

      The idea of keeping knowledge secret is embarrassingly backward.

      OK then, please post all your passwords here. We will wait.

    5. Re:Put him to death by Anonymous Coward · · Score: 1

      Passwords are not knowledge.

    6. Re:Put him to death by JBMcB · · Score: 1

      But how are we going to know all about you if we can't read your email?

      Or are you saying that some people can have secrets but other people can't?

      --
      My Other Computer Is A Data General Nova III.
    7. Re: Put him to death by Coisiche · · Score: 1

      What's more worrying is the implication that the poster would consider themselves an ubermensch. Granted one without an uber-skill in languages but an ubermensch nonetheless.

  3. "Swapped information" by Errol+backfiring · · Score: 4, Interesting

    I am curious: what information did he get in return?

    --
    Nae king! Nae laird! Nae yurrupiean pressedent! We willna be fooled again!
    1. Re:"Swapped information" by 110010001000 · · Score: 4, Funny

      He found out what they really put in the "Crab Rangoon" in Chinese restaurants.

    2. Re:"Swapped information" by hey! · · Score: 1

      I always assumed it was some crab's rangoons.

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    3. Re:"Swapped information" by itsenrique · · Score: 1

      Nah, it's just some pollock's rangoons.

  4. TFS is confusing... by wbr1 · · Score: 3, Interesting
    HO is chinese and works for the Chinese.. who is the TVA employee?

    To clarify this is from TFA:

    Among the six unidentified American co-conspirators listed in the indictment is a person labeled "U.S. Person 1," described as the TVA senior manager for the probabilistic risk assessment in the Nuclear Power Group from April 2010 to September 2014. The TVA executive was born in Taiwan and became a naturalized citizen in 1990, according to the indictment. A payment by Ho to the TVA executive was sent to Chattanooga, according to the indictment.

    --
    Silence is a state of mime.
  5. Tip of the iceberg? by Trachman · · Score: 4, Insightful

    Truth is pretty much every nation with ambitions is spying on US and other western military, industrial, technological secrets and stealing intellectual property. Key culprits include (but, of course, are not limited to) Russia, China, Israel, India, S.Korea. It is a long and time honored tradition.

    Spying is an important business and there is competition, career, and money to be made. Spying is so prevailing, that, believe it or not,there are established MBA style, super competitive, high intensity, spying academies. Infiltration, psychology, strategic decision making, communication, surveillance evasion, recruiting are taught among many other skills. Profession is considered as highly competitive, prestigious and lucrative, plus the security of the government job, military rank, early pension and opportunity for additional high powered career after the service. Stolen technology is considered as one of the best investments, for thieving nation spends zero dollars in time, research and development, while the spy is considered more valuable with more experience under the belt. There are multiple known iconic examples, and multiple, literally, incalculable number of secrets that are being siphoned every day.

    Countering such activities and catching spies is the direct function of NSA, CIA and other organizations. However spying on US is so prevailing, so ingrained, that I am sure that our intelligence officers are disillusioned and neutered, as they think they are "allowed" to work only on certain type spying which is perceived as direct threat to national security: nuclear, bio-weapons.

    Somewhere in the time, focus of attention turned from surveillance of the spies and the agents of the spies, to terrorism, which is an easy hanging fruit, never ending, cheap way to ensure budgets are approved to fight terrorism. Few generations ago it was called banditism and was dealt by local sheriffs.

    America is not winning anymore.

    1. Re:Tip of the iceberg? by Anonymous Coward · · Score: 1, Insightful

      You're delusional. Will you also suggest that the U.S does not spy on other countries? You talk about intellectual property and innovation as if all of it somehow happens in the U.S. Some of it does, greatly in part to the massive immigration of highly skilled people from the countries you mention. Be grateful that these people carry your tech sector, beacuse it's apparent that you can't on your own.

      And your last sentence... "winning"? Everything is a battle and a war to you, and that's the problem here.

  6. Puts things in perspective by Etherwalk · · Score: 1

    Wow, it's like our national security apparatus is doing its job. Almost as if the whole "spying on your own population" and "remote-control war by drone" and "harassing everyone who gets on a plane" and "entrapping as many people as possible" parts of their jobs were all really just silly and stupid wastes of taxpayer money to make us less safe.

    A lot of good guys in intelligence. Almost as if they started down a road paved with good intentions...

  7. Thank you BeauHD by mdsolar · · Score: 1

    I almost always quote. Spelling nazis are annoying. Even if reporters are long-winded like in the Post, at least they have spelling editors. But it does bug me when their work is attributed to me with a "mdsolar writes" lead in here. BeauHD got it right.

    Spelling nazis: you may target my journal, I may even that you there since I can make corrections.

    1. Re:Thank you BeauHD by fnj · · Score: 1

      I may even that you there

      Would you care to rephrase that thought intelligibly?

    2. Re:Thank you BeauHD by mdsolar · · Score: 1

      Mispelled 'thank' you nazi ;-)

  8. Ching Guey by l0n3s0m3phr34k · · Score: 1

    A search for "TVA senior manager for the probabilistic risk assessment in the Nuclear Power Group from April 2010 to September 2014" returned Ching Guey. Inceed lists his work experience as "Senior Manager Nuclear Power Group - Chattanooga, TN April 2010 to September 2014 TVA" so that's almost an exact match, especially given his name. Matching the list of wikipedia to the info off NRC.gov, there is only Exelon Generation Co. LLC, or FirstEnergy Nuclear Operating Co. Exelon owns 4 out of the 5. Then, there is the actual PDF of the indictment.

  9. IS bogus. Be Very Afraid Again. by TheRealHocusLocus · · Score: 2, Interesting

    Therefore what is the scope of this investigation? Trying to prevent P.R.C. from extending their scope of nuclear-electric energy production, so they cannot fight coal-burning pollution and global warming? Trying to slow their nuclear-medical capability so that asian cancer patients die earlier?

    Yes, yes! All of this in sad fact... though the indictment is deliberately crafted to scare people and I'm not surprised it has become anti-nuke clickbait at Slashdot.

    NO, It's certainly not a Rosenberg spy leak to bring the POWER OF DOOM to our enemies...
    NO, it's not really international espionage in any sense of 'actionable' secrets...
    NO, it's not even direct 'corporate' espionage... so what is it,,really? Here's the meat,

    [TA] The TVA executive in 2013 used TVA ties to access the nonprofit Electric Power Research Institute and provided China General with the nonprofit's reports on nuclear power that were supposed to be restricted to members of the research firm, according to the indictment.

    This is a butt-hurt nonprofit suing its executive for moonlighting, and he clearly betrayed their trust by sharing proprietary information. So they have cooked up something that sounds (to gullible people, anti-nuclear activists, and hopefully a judge) as if it was a sensitive leak of critical nuclear secrets to nail the guy.

    TVA wants to have their cake and eat it too. As a proponent and purveyor of civilian nuclear energy they have suffered along with the whole nuclear power industry, from the cold war fallout that confers an absurd level of oversight to the whole supply side of lightly enriched uranium fuel, which you can handle with your bare hands and for which there are NO real 'secrets' left... AND YET, they'll pander to the process by manufacturing a faux Rosenberg-style scandal if it suits them. They should be ashamed.

    [TA] The indictment alleges Ho "entered into contracts with" the TVA executive and "other U.S.-based experts to provide assistance to" the Chinese-owned nuclear power company --- one of the three largest in China --- related to the "development and production of special nuclear material" in the People's Republic of China.

    Gee... lemmie guess... this almost sounds like information on solid fuel assemblies for nuclear power plants, the kind China has made for decades and is also making, under license from Westinghouse and others.

    I see 'plutonium' is mentioned in the article too because it is a by-product in the fission of uranium, is used in the manufacture of bombs and is on the 'special' nuclear materials list. Nice way to tie this ball-less issue to nuclear weapons. Nitroglycerin tablets are a dangerous by-product of the pharmaceutical industry and their use in controlling heart attacks is a prime example of letting corporate medical interests undermine National Security. They are not explosive themselves but with a billion dollars' worth of them (small change to Our Enemies) A Bomb Could Be Made.

    [TA] According to the indictment, the TVA executive provided Ho with Florida Power & Light "information regarding nuclear power plant outage times" in 2004 for use at China General's Daya Bay Nuclear Power Plant and provided consulting services to Daya Bay during that time.

    Does it sound kind of fishy that leaking information on outage times--- such as those posted publicly on Nuclear Street website so that migrant nuclear workers may plan to converge on plants during refueling outages --- would be valuable enough to put someone away behind bars?

    Perhaps people clicked into this story because they thought the lid was being blown off of something.
    Perhaps the news wires are fronting the story without perspective because the indictment has a delicious 'Rosenberg' flavor.
    If so... enjoy the rusty nail soup. There really is nothing so see here, but don't move along. It's better than TV.

    --
    <blink>down the rabbit hole</blink>
    1. Re:IS bogus. Be Very Afraid Again. by TheRealHocusLocus · · Score: 1

      Maybe when I use the phrase "pander to the process" in GGGP you thought I said "panda".

      HAHAHAHAHA!
      Another AC eats, shoots and leaves!

      --
      <blink>down the rabbit hole</blink>
  10. Re:What I understand by khallow · · Score: 1

    It might help if you thought about this a bit. The first thing is not espionage and coincidentally is not considered espionage. The second was (incidentally breaking US law in the process) and was considered espionage. That's the desired outcome, right? We wouldn't want the authorities to confuse their labels, right?

  11. Clearly... by sycodon · · Score: 2

    ...you have never tasted Russian Cuisine.

    --
    When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
  12. An odd case of a crime that benefits the world by Applehu+Akbar · · Score: 3, Interesting

    Because TVA is an electric utility, not a military organization, the nuclear information it possesses is purely for civilian use. If it allows China to emit less carbon by closing more coal plants, the net effect will be beneficial for everyone.

    The crime here is not espionage, but theft of TVA's intellectual property.

    1. Re:An odd case of a crime that benefits the world by tsqr · · Score: 2

      The crime here is not espionage, but theft of TVA's intellectual property.

      Actually, the intended end use of exported sensitive material and/or information is irrelevant. Acting as an agent of a foreign government in the acquisition of sensitive information (where "sensitive information" is defined by the US State Department) is either a serious violation of export laws or espionage, depending on the material/information involved. You could learn a few things by reading up on MCTR and ITAR. And for "purely civilian use", you can add EAR (no, not that thing on the side of your head, but the Commerce Department's Export Administration Regulations) to that list.

    2. Re:An odd case of a crime that benefits the world by Nidi62 · · Score: 1

      Because TVA is an electric utility, not a military organization, the nuclear information it possesses is purely for civilian use. If it allows China to emit less carbon by closing more coal plants, the net effect will be beneficial for everyone.

      The crime here is not espionage, but theft of TVA's intellectual property.

      So if the Chinese government sends agents to steal information about more efficient aircraft engines from Boeing to pass on to COMAC (a state-owned aircraft manufacturer) the FBI shouldn't in any way try to stop them? Industrial espionage is a very common use of state intelligence apparatuses, especially in cases where production companies are state-owned or closely affiliated with the government.

      --
      The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
    3. Re:An odd case of a crime that benefits the world by Applehu+Akbar · · Score: 1

      " if the Chinese government sends agents to steal information about more efficient aircraft engines from Boeing to pass on to COMAC"

      That too would be theft of company IP.

    4. Re:An odd case of a crime that benefits the world by Nidi62 · · Score: 1

      " if the Chinese government sends agents to steal information about more efficient aircraft engines from Boeing to pass on to COMAC"

      That too would be theft of company IP.

      But it's in a sate's best interest to protect it's own domestic companies and industries from anti-competitive actions which would harm that company. You don't want to invest millions of dollars into research and development for a new process/technology/whatever, only to have it stolen and offered by a foreign company that can undercut your company because they don't need to recoup those initial research costs. Here's a perfect example

      --
      The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
    5. Re:An odd case of a crime that benefits the world by Applehu+Akbar · · Score: 1

      A fundamental difference between Boeing and TVA is that Boeing is making ongoing use of technology it develops in competition with other companies of its type, wherever they may be located. TVA, on the other hand, recently canceled its plans to build new next-generation nukes. That being the case, it has no business sitting on technology that the rest of the world can use.

  13. Re: What I understand by WindBourne · · Score: 1

    Lol. Who captured German scientist to help with nuke efforts?

    --
    I prefer the "u" in honour as it seems to be missing these days.
  14. Re:simpsons by JackieBrown · · Score: 2, Interesting

    Don't they know that - like many things, - it's only ok when the Clintons do it?
    http://www.cnn.com/ALLPOLITICS...

  15. I wonder how income inequality contributes by swb · · Score: 1

    I wonder if and how the declining middle class and income inequality play into espionage of all types.

    Does it just lower the price or does it increase the number of people who are willing to be bought?