Date: 03-02-2016

Case Style: United States of America v. Louis Joseph Brothers

Case Number: 2:14-cr-00035-ART-CJS

Judge: Amul R. Thapar

Court: United States District Court for the Eastern District of Kentucky (Christian County)

Plaintiff's Attorney: Casey Arrowood, Robert Kennedy McBride, Robert Kennedy McBride

Defendant's Attorney: Gary Sergent and David Sloan

Description: Ft. Campbell, KY - Former Chief Executive Office Sentenced to Over 7 years in Prison for Illegally Exporting Technology and to China and Money Laundering

Louis Brothers, 63, of Covington, Kentucky, was sentenced to 93 months in prison for illegally exporting sophisticated technology equipment to the People’s Republic of China (PRC) and concealing the unlawful proceeds. The sentence also includes a monetary judgment of $1.1 million.

U.S. District Judge Amul R. Thapar of the Eastern District of Kentucky sentenced Brothers for conspiracy, aiding and abetting in the illegal export of defense articles and conspiracy to launder funds.

Brothers, a former president and CEO of Valley Forge Composite Technologies, pleaded guilty to the offenses in July 2015. He admitted that from 2009 until 2013, he unlawfully exported microcircuits to the PRC. Under federal law, anyone exporting a defense article, including microcircuits, to the PRC must obtain the permission of the Department of State for the purposes of maintaining national security.

According to his plea agreement, Brothers intentionally avoided notifying the Department of State about his activity and labeled his shipments as “computer parts” in order to conceal the true identity of the items.

Brothers further admitted that he falsified paper work to make it appear that the proceeds he received from his business with the PRC were actually profits from a business he owned in Kentucky.

The investigation was conducted by the FBI and HSI.

Outcome: Defendant was sentenced to 93 months in prison.

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