FBI raids house in Chinese spy case

[Marcus Marulus]

FBI raids house in Chinese spy case

By LARA JAKES JORDAN, Associated Press Writer


Federal authorities remove contents from a home in New Orleans, Monday, Feb. 11, 2008. FBI agents raided the home in the Uptown area of the Crescent City in connection with a spy investigation of U.S. military secrets being illegally given to China.(AP Photo/Bill Haber)


WASHINGTON - A Defense Department analyst and a former engineer for Boeing Co. were charged Monday in separate spy cases for allegedly handing over military secrets to the Chinese government, the Justice Department said.

Additionally, two immigrants from China and Taiwan accused of working with the defense analyst were arrested after an FBI raid Monday morning on a New Orleans home where one of them lived.

The two cases — based in Alexandria, Va., and Los Angeles — have no connection, and investigators said it was merely a coincidence that charges would be brought against both on the same day.

The arrests mark China's latest attempts to gain top secret information about U.S. military systems and sales, said Assistant Attorney General Kenneth Wainstein. He described China as "particularly adept, and particularly determined and methodical in their espionage efforts."

"The threat is very simple," Wainstein said at a Justice Department news conference in Washington. "It's a threat to our national security and to our economic position in the world, a threat that is posed by the relentless efforts of foreign intelligence services to penetrate our security systems and steal our most sensitive military technology and information."
An official at the Chinese Embassy did not immediately respond to a request for comment.

In the first case, prosecutors said weapons systems policy analyst Gregg W. Bergersen, 51, of Alexandria, Va., sold classified defense information to a New Orleans furniture salesman. In return, the salesman, a Taiwan native identified as Tai Kuo, a 58-year-old naturalized U.S. citizen, forwarded the information to the Chinese government.

The data outlined every planned U.S. sale of weapons or other military technology to Taiwan for the next five years, prosecutors said.

It's not clear how much money Bergersen received for the classified information, or if he was even aware it was intended for the Chinese government. Court documents portray him as nervous during at least one meeting when he handed over a diskette of documents to be recorded, asking Kuo to keep their deal a secret.

"I'd go to jail, I don't wanna go to jail," Bergersen said in a conversation taped by the FBI.

"I'd probably go to jail too," Kuo responded. Prosecutors described him as chuckling.

A third alleged conspirator in the case, Chinese national Yu Xin Kang, 33, served as the go-between for Kuo and the People's Republic of China, prosecutors say.

Kuo and Bergersen, who worked at the Defense Security Cooperation Agency in Arlington, Va., were arraigned before Magistrate Judge John Anderson at the federal courthouse in Alexandria. Bergersen was charged with conspiracy to deliver national defense information to a person not entitled to receive it. He faces a maximum of 10 years in prison.

Bergersen, who was arrested at his home early Monday, wore a long black T-shirt and blue shorts. His wife, who identified herself only as Ofelia, told reporters Bergersen was innocent and the charges "came out of the blue."
Tai Kuo was charged with conspiracy to deliver national defense information to a foreign government. He faces life in prison if convicted. Kang was to appear in federal court in New Orleans, facing the same charges as Kuo.

In the second, unrelated case, former Boeing engineer Dongfan "Greg" Chung, 72, was arrested on charges of working as an unregistered agent for the Chinese government who stole trade secrets from the defense contractor. The stolen data largely focused on aerospace programs, including the Space Shuttle, prosecutors said.

Chung, a naturalized U.S. citizen, was indicted last week on espionage, conspiracy and obstructing justices charges that were unsealed Monday. He has been the subject of an FBI investigation for nearly a year as part of an inquiry into another Chinese-born engineer who was convicted in 2007 of stealing military data for the Chinese government.

As early as 1979, prosecutors said, Chinese officials were tasking Chung to collect data on U.S. aviation, including the Space Shuttle and various military and civilian aircraft. At one point, Chung responded in a letter that he wanted to "contribute to the motherland," according to the Justice Department.

Over an 18-year span, Chung traveled to China many times to deliver lectures on the Space Shuttle and other programs, and he allegedly met with Chinese government officials there to discuss how to transfer U.S. data.

Chung, who has a security clearance, worked for contractor Rockwell International from 1973 until 1996, when Boeing acquired Rockwell's defense and space firm. He retired from Boeing in 2002 but returned the next year as a contractor. He ultimately left Boeing in 2006.
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Associated Press writers Foster Klug in Washington, Michael Kunzelman in New Orleans and Matthew Barakat in Alexandria, Va., contributed to this report.

On the Net:
Justice Department: http://www.justice.gov

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