posted May 21, 2008
A federal grand jury in Knoxville has returned an 18-count indictment charging J. Reece Roth, a professor emeritus at The University of Tennessee, and Atmospheric Glow Technologies Inc. (AGT), a Knoxville-based technology company, with conspiring to defraud the U.S. Air Force and disclose restricted U.S. military data about Unmanned Aerial Vehicles (UAVs), or “drones,” to foreign nationals without first obtaining the required U.S. government license or approval.
The indictment was announced by James R. Dedrick, U.S. Attorney for the Eastern District of Tennessee, and Patrick Rowan, Acting Assistant Attorney General for National Security.
Roth, 70, currently resides in Knoxville. He is anticipated to make his initial court appearance next week before a U.S. Magistrate judge.
Roth is charged in the indictment with one count of conspiracy to defraud the U.S. Air Force and violate the Arms Export Control Act; 15 counts of violating the Arms Export Control Act, and one count of wire fraud for defrauding the University of Tennessee. AGT is charged in the indictment with one count of conspiracy to defraud the U.S. Air Force and violate the Arms Export Control Act and 10 counts of violating the Arms Export Control Act.
According to the indictment, between January 2004 and May 2006, Roth and AGT engaged in a conspiracy to defraud the U.S. Air Force and transmit export-controlled technical data related to a restricted U.S Air Force contract to develop plasma actuators for a munitions-type UAV, or “drone,” to one of more foreign nationals, including a citizen from the People’s Republic of China. The Chinese national was a graduate research assistant at the University of Tennessee. The University of Tennessee was victimized by the conspirators and cooperated throughout with the Federal Bureau of Investigation led federal investigation.
Further, according to the indictment, Roth departed for the People’s Republic of China in May 2006 and carried multiple documents, which were subject to export controls, containing technical data controlled by the International Trafficking in Arms Regulations and related to the above U.S. Air Force contract.
The indictment also alleges that, in May 2006, Roth directed the wire transmission to China of a document containing restricted technical data controlled by the International Trafficking in Arms Regulations and related to the above contract.
According to U.S. Attorney Dedrick, violations of the Arms Export Control Act carry a maximum possible penalty of ten years imprisonment and a $1,000,000 fine. Wire fraud carries a maximum possible penalty of 20 years imprisonment and a $250,000 fine, while conspiracy carries a maximum penalty of five years imprisonment and a 250,000.00 fine.
Last month, Daniel Max Sherman, a physicist who formerly worked at AGT, pleaded guilty to conspiracy to violate the Arms Export Control Act, in connection with the investigation.
Sherman, 37, formerly of Knoxville, currently resides in Littleton, Co.
United States Attorney Russ Dedrick said, “The protection of United States technology is a continuing priority of the Department of Justice and this District.”
These investigations were jointly conducted by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement, U.S. Air Force Office of Special Investigations, and the Department of Commerce Office of Export Enforcement.
The case is being prosecuted by Assistant U.S. Attorneys Jeffrey Theodore and Will Mackie of the United States Attorney’s Office for the Eastern District of Tennessee.
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