Maui Man Indicted For Selling Defense Secrets To China

A federal grand jury in Honolulu has returned an 18-count superseding indictment against Noshir S. Gowadia, age 62, of Maui, Assistant Attorney General for the National Security Division Kenneth Wainstein and U.S. Attorney Edward Kubo Jr. announced today.

The superseding indictment charges Gowadia with performing substantial defense related services for the People's Republic of China (PRC) by agreeing to design and later designing, a low observable cruise missile exhaust system nozzle capable of rendering the missile less susceptible to detection and interception.

Count one of the superseding indictment charges Gowadia with conspiring to violate the Arms Export Control Act by entering into an illegal agreement to design and assist in the testing of the stealthy cruise missile nozzle. Count two charges Gowadia with the substantive act of performing a defense service for the PRC without first obtaining the necessary licensing approval of the U.S. Department of State.

The superseding indictment describes six trips taken by Gowadia to the PRC for the purpose of discussing, designing and testing the stealthy cruise missile nozzle and describes contacts through covert email addresses between Gowadia and named co-conspirators, one of whom is alleged to be a representative of the PRC's "Foreign Experts Bureau." The superseding indictment also describes Gowadia's covert travel and entry into mainland China for the purpose of assisting the PRC in the development of the stealthy exhaust nozzle.

The superseding indictment also charges Gowadia with three counts of willfully communicating classified national defense information to PRC representatives with the intent that it be used to the advantage of the PRC or to the injury of the United States.

These charges each carry a term of imprisonment up to life, with a possible maximum sentence of death if certain statutory criteria are met and a maximum fine of up to $250,000 or twice the gross gain derived from the violation.

The superseding indictment additionally charges Gowadia with two counts of willfully communicating classified national defense information which could be used to the advantage of the PRC or the injury of the United States to persons in the PRC not entitled to receive it.
The superseding indictment also includes counts from the original indictment charging three counts of communicating classified national defense information to a person not authorized to receive it and three counts of exporting technical data related to a defense article without an export license.

Gowadia is also charged with the unauthorized retention and possession of classified national defense information and with four counts of laundering the financial proceeds he derived from his unlawful defense service work for the PRC.

The superseding indictment also charges Gowadia with four counts of laundering funds paid to him by the PRC and provides notice of the government's intent to seek forfeiture of property which facilitated the espionage violations or was a proceed of Gowadia's alleged money laundering activities.

"As charged in the superseding indictment, the defendant in this case attempted to profit from his know-how and his knowledge of sensitive military technology," says Wainstein. "This case demonstrates that the Department of Justice will vigorously prosecute those who illegally transfer such information and services to foreign countries."