Matthew G. Olsen Assistant Attorney General for National Security | Official Website
Richard Shih, the 77-year-old founder and former CEO of a California-based freight forwarding company, has pleaded guilty to conspiring to violate U.S. export laws. Shih's company, with offices in Grapevine, Texas, was involved in shipping goods to Chinese companies listed on the U.S. Department of Commerce’s Entity List.
Court documents reveal that since September 2018, Shih's company maintained business relations with Seajet Company Limited, a Chinese freight forwarder added to the Entity List for activities contrary to U.S. national security interests. Despite this designation requiring a specific license for exports, Shih's company continued transactions with Seajet and its alias Hisiang Logistics Company Limited until May 2022.
During this period, over 1,000 shipments were made from the United States to Seajet and Hisiang. The transactions involved 34 international wire transfers from Seajet's co-owner and affiliated businesses to accounts held by Shih’s company. These funds covered transaction expenses like air carriers and trucking companies while also generating profit for the company.
Shih was aware of Seajet's status on the Entity List and its alias Hisiang. He received an email from Seajet’s co-owner about the name change but was informed that other aspects such as address and structure remained unchanged. This information was forwarded by Shih to his employees.
Federal officials had repeatedly informed Shih’s company about the Entity List regulations. In December 2018, a BIS official visited the company to discuss prohibitions against exporting items to Seajet due to its listing. Despite these warnings, records showed continued transactions under account codes assigned to Seajet.
Shih admitted guilt under charges of conspiring to violate the Export Control Reform Act (18 U.S.C. § 371), which could result in up to five years in federal prison. Sentencing will be determined by a federal district court judge based on guidelines and statutory factors.
The case announcement came from Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; Assistant Secretary for Export Enforcement Matthew S. Axelrod of BIS; U.S. Attorney Leigha Simonton for the Northern District of Texas; and Executive Assistant Director Robert Wells of the FBI’s National Security Branch.
The investigation is being conducted by the FBI and BIS, with prosecution led by Assistant U.S. Attorney Jay Weimer for the Northern District of Texas and Trial Attorney David J. Ryan from the National Security Division’s Counterintelligence and Export Control Section.
