A former U.S. Army helicopter pilot who is now a civilian contractor entered a guilty plea in federal court today, admitting that he accepted thousands of dollars from Chinese government representatives in exchange for information about aviation from his defense contractor employers and acted as an unregistered agent of China.
He also admitted to lying about things relating to national security during background investigations.
Shapour Moinian, 67, of San Diego, spent roughly from 1977 to 2000 serving in the Army in South Korea, Germany, and the United States. After his service, Moinian worked for the Department of Defense as well as several authorized defense contractors in the United States, including San Diego.
A contractor can only work on projects involving sensitive information if they have been given the “cleared” designation.
According to his plea bargain, Moinian was contacted by a person in China who purported to be employed by a technical recruiting firm while he was working for a cleared defense contractor, or CDC, on several aircraft projects used by the U.S. military and U.S. intelligence agencies.
Moinian was given the chance to consult for China’s aviation sector by this individual.
According to Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, “Moinian was a paid agent of the Chinese government who sold American aviation-related material.”
“The Department of Justice has zero tolerance for anyone who assist foreign governments in breaking the law in order to undercut American innovation and competitiveness.”
U.S. Attorney Randy Grossman for the Southern District of California stated that the defendant “took the aircraft materials of his American companies and sold them to China.”
“This behavior by a former U.S. military member was an appalling breach of trust. Anyone working under the orders of foreign governments to steal American technology and intellectual property will be subject to serious investigation and prosecution by the United States.
“The People’s Republic of China is still adamant in obtaining our knowledge and technology. According to Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division, “In this case, we saw a former U.S. government employee operating as an agent of the Chinese government and Chinese intelligence operatives extensively using social media to identify willing targets.
“The FBI is committed to challenging the actions and policies of the Chinese government that endanger our national security and freedom in addition to using risk and consequences against the defendant.”
“The defendant admitted to acting as an unregistered agent of a foreign power, fabricating information on his background check paperwork to obtain his security clearance, and knowingly disclosing confidential information to individuals under the control of the Chinese government in exchange for payments.
This is yet another illustration of how the Chinese government bolsters its military prowess by illegally using American technology, according to Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office.
“Those with security clearances are aware of the details that must be provided to security personnel.
In this case, the defendant broke his holy promise, was aware of the wrongness of his deeds, and then lied about it.
Anyone who takes advantage of their position and access to collect confidential information on behalf of a foreign country will be pursued by the FBI and our colleagues on the Counterintelligence Task Force.
I want to express my gratitude in particular to the Naval Criminal Investigative Service (NCIS) for their ongoing collaboration on this matter.
According to Special Agent in Charge Michelle Kramer of the NCIS Office of Special Projects, “Mr. Moinian sold intelligence to the Chinese government and repeatedly lied to cover up his crimes.”
“He is currently being held accountable for his deeds. NCIS and our allies are still steadfast in their dedication to safeguarding American military personnel and pursuing criminal activity that poses a threat to the superiority of American warfighters.
When Moinian met with this alleged recruiter in Hong Kong in March 2017, he made the deal to swap information and materials about a variety of aircraft types developed and/or produced in the US for cash.
During that meeting, Moinian accepted between $7,000 and $10,000 in US money. In accordance with his plea deal, Moinian was aware that these people were working for or being directed by the People’s Republic of China government at both this meeting and all following meetings.
Moinian started collecting aviation-related materials after he got home, which involved copying information from a CDC to a flash drive.
The defendant visited China in September 2017, and while there, met with representatives of the Chinese government and gave them aviation-related papers on a thumb drive, including confidential data from the CDC.
Then Moinian made arrangements to pay for this information using his stepdaughter’s South Korean bank account.
Instructing his stepdaughter to send the money to him in several transactions, Moinian explained to her that these amounts were reimbursement for his consultancy services performed abroad.
These people also gave Moinian a cell phone and other equipment so that he could contact them and facilitate the electronic exchange of documents and information.
The same people were reconnected with when Moinian visited Bali at the end of March 2018. He started working at another CDC later that year.
During this period, the same persons in China transmitted thousands of dollars to Moinian’s stepdaughter in South Korea, who then forwarded the money to Moinian in several transactions.
Moinian returned to Hong Kong in August 2019 to meet with these same people and was compensated again with about $22,000 in cash.
This money was brought back into the country illegally by Moinian and his wife.
In his plea deal, Moinian also acknowledged lying on background checks he submitted to the government in July 2017 and March 2020, when he claimed he had no ongoing relationships with foreigners and that no one abroad had offered him a job.
For working as an agent of a foreign government, Moinian faces a potential sentence of 10 years in jail and a punishment of up to $250,000, and for making false statements, he may receive a sentence of up to five years and a fine of $250,000. On August 29, there will be sentencing.
The Southern District of California U.S. Attorney’s Office and the Department of Justice’s National Security Division are prosecuting this case, which was looked into by the FBI and NCIS.