Counterintelligence - Espionage - Spy Case

Name	Tai Shen Kuo aka Tai Kuo aka Kuo Tai Shen	Yu Xin Kang aka Kang Yu Xin aka Katie	Gregg William Bergersen
Employer	Businessman, owns a furniture company	Employee of Kuo's furniture company	US Department of Defense / Defense Security Cooperation Agency (DSCA) Agency that implements DOD's Foreign Military Sales program.
Dates of Employment
Employee Type			Civilian
Job Title/Duties	Entrepreneur. Variety of business interests. Owned import-export furniture business. Maintains an office in Beijing, PRC. Taken steps to establish two companies in the US to pursue contracts related to the US sale of defense technology to Taiwan. Focused on the restaurant business in the 1980s and 1990s.		Weapons Systems Policy Analyst Director C4I Program, Navy International Programs Office
Military Rank
Clearance Level	None		Top Secret/SCI

Spying For	People's Republic of China	People's Republic of China	People's Republic of China
Codename			"G"
Spying Dates	January 2006 to February 2008	March 2007 to Feb. 11, 2008	January 2006 to February 2008
Co-conspirators	"PRC Official A", a PRC government official who received the US national defense information provided by Bergersen via Kuo. Based in Guangzhou, PRC and Hong Kong. Kuo stated that the "Central Committee has assigned him ("A") to take care of me." Also gave Chi Mak and family spy ring lists of US national defense information the PRC wanted the Maks to collect.
Methodology	Working under the direction of an individual identified in the complaint affidavit only as “PRC Official A,” Kuo cultivated friendships with Bergersen and others within the U.S. government (govt employees and contractors) and obtained from them -- for ultimate passage to the PRC -- sensitive U.S. government information, including classified national defense information. Meetings between Kuo and Bergersen took place at various locations in Northern Virginia, Charleston, South Carolina, and Las Vegas. Kang periodically served as a conduit of information between "PRC Official A" and Kuo--a "cut out". Kuo recorded conversations with Bergersen with a digital voice recorder. Kuo and PRC Official A communicated via email, at times encrypted, and attached stolen documents.
Possible Motivations, Problems		Emotional/Romantic attachment to Tai Shen Kuo	Money
Finances	Travels reguarly to the PRC Bank account in Hong Kong Gets paid by "PRC Official A" Owned a rotation of nice cars; large homes in Uptown New Orleans and upscale Houma subdivision. In 2007, he put his New Orleans house up for sale for $480,000		Bought townhouse on 31 May 2000 for $265,000
Identified/ Investigation
Arrest Date/Location	Monday, 11 February 2008, New Orleans, LA	Monday, 11 February 2008, New Orleans, LA	Monday, 11 February 2008, Alexandria, VA
Charges	Conspiracy to disclose national defense information to a foreign government, in violation of 18 U.S.C., Section 794(a) and (c).	Conspiracy to disclose national defense information to a foreign government, in violation of 18 U.S.C., Section 794(a) and (c).	Conspiracy to disclose national defense information to persons not entitled to receive it, in violation of 18 U.S.C., Section 793(d) and (g).
Court	Eastern District of Louisiana	Eastern District of Louisiana	Eastern District of Virginia
Lawyers
Status	Pleaded Guilty 13 May 2008 to spying for the Chinese government and providing Beijing with secret information on military relations between the U.S. and Taiwan. Awaiting sentencing: scheduled for August 8, 2008	Pleased guilty on May 28 2008 to one-count criminal information charging her with aiding and abetting an unregistered agent of a foreign government, namely the People's Republic of China (PRC), in violation of 18 U.S.C., Sections 2 and 951. Sentenced to 18 months on August 1, 2008	31 March 2008: Pleaded Guilty to a single count of conspiracy to disclose national defense secrets 11 July 2008: Sentenced to 57 months in prison and three years of supervised release for conspiracy to disclose national defense information to persons not entitled to receive it, in violation of 18 U.S.C., Sections 793(d) and (g)

Date/Place of Birth	1950, Taipei, Taiwan	1975	1957
Citizenship	Naturalized US citizen; holds both US and Taiwanese passports Lived in the US since 1973	PRC citizen, lawful permanent resident alien	US citizen
Residences	1739 Bordeaux Street New Orleans, LA Owns a residence in Houma, LA	Primarily lived in the PRC Rented apartment at 835 Sixth Street, New Orleans, LA since September 2007. Lived with roommates	6226 Littlethorpe Lane Alexandria, VA
Education	Accounting degree from Nicholls State University in Thibodaux, 1979
Family	Wife Jane Kuo; daughter Jenny who graduated from Tulane University in 2004 and moved to Chicago for medical school		Wife Ofelia Perotti works for the Naval Criminal Investigative Service, originally from Caracas; son Alex
Other Employment	Owner of Tee Thais restaurant at Southland Mall. Former owner of the KST restaurant, which used to service the patrons of Ellendale Country Club off La. 311
Additional Bio	1992: Louisiana Gov. Edwin Edwards appointed Kuo to a commission with bond-writing powers, the Louisiana Imports and Exports Trust Authority--Kuo often lobbied state legislators for more money to promote trade overseas

Documents	AFFIDAVIT: US v Tai Shen Kuo, Gregg William Bergersen and Yu Xin Kang......(6 February 2008) Prepared Remarks of Kenneth L. Wainstein, Assistant Attorney General for National Security, at a Press Conference Announcing Espionage Charges.....(DOJ, 11 February 08) Defense Department Official and Two Others Arrested on Espionage Charges Involving China.....(DOJ Press Release, 11 February 08) Defense Department Official Pleads Guilty to Espionage Charge Involving China .....(DOJ Press Release, 31 March 08) New Orleans Businessman Pleads Guilty to Espionage Charge Involving China.....(DOJ Press Release, 13 May 2008) Third Defendant Kang Pleads Guilty in China Espionage Case ......(DOJ Press Release, 28 May 2008) Former Defense Department Official Sentenced to 57 Months in Prison for Espionage Violation ..... (DOJ Press Release, 11 July 2008)
Quotes	"Today’s prosecution demonstrates that foreign spying remains a serious threat in the post-Cold War world. The conspiracy charged in this case has all the elements of a classic espionage operation: a foreign government focused on accessing our military secrets; foreign operatives who effectively use stealth and guile to gain that access; and an American government official who is willing to betray both his oath of public office and the duty of loyalty we rightly demand from every American citizen. Such espionage networks pose a grave danger to our national security, and we should all thank the investigators and prosecutors on this case for effectively penetrating and dismantling this network before more sensitive information was compromised." --Kenneth L. Wainstein, assistant U.S. attorney general for national security “Those who compromise classified national security information betray the enormous responsibility and trust placed in them by our government and the American people.”--U.S. Attorney Chuck Rosenberg "While the collapse of the Soviet Union ended the Cold War, it did not end the threat from the foreign intelligence services."--Kenneth L. Wainstein, assistant U.S. attorney general for national security "Espionage is a real and serious threat to our national security."--U.S. Attorney Chuck Rosenberg “Mr. Bergersen betrayed his oath to serve and protect our nation when he used his government position to access and pass national defense information to a person he knew was not entitled to receive it. Today, he is paying the price for his actions.”-- Patrick Rowan, Acting Assistant Attorney General for National Security. “Espionage is one of the most serious crimes any American, much less a government official entrusted to serve and protect our Nation's defense, can commit. The FBI is working diligently with our partners in the law enforcement and intelligence community to safeguard America's national defense information and to ensure individuals who commit such treasonous acts against the United States will be held fully accountable.”--FBI Executive Assistant Director Arthur M. Cummings, National Security Branch
Case Links	18 May 2004 briefing on C4ISR: Navy International Programs Office Role, Mr. Gregg Bergersen (PowerPoint), Director C4I Program, Navy International Programs Office NAVY IPO ROLE IN C4ISR INTERNATIONAL INCENTIVE (PowerPoint by Bergersen) Bergersen spoke on a panel about "International Cooperation Initiatives" at ComDef West 2004 Conference

News:

(latest news at the top)

Chinese national sentenced for aiding Houma spy

The woman who helped a former Houma businessman and tennis pro pass U.S. military secrets to the Chinese government has been sentenced to a year and a half in prison.

Yu Xin Kang (yoo shin kong) is a 33-year-old Chinese national who had been living in New Orleans with Tai Shen Kuo, known in Houma as a restaurateur and the former tennis pro at Ellendale Country Club. Kuo owned a house on Wellington Drive in Summerfield and another in New Orleans. Kang was an employee of Kuo’s New Orleans furniture business. Kang at times served as an intermediary for Kuo in helping him get secret information about U.S.-Taiwanese military relations to the Communist government in Beijing…..(Houma Today, 2 Aug 08)

New Orleans Woman Sentenced to Prison for Aiding and Abetting Unregistered Agent of China

Yu Xin Kang, age 33, of New Orleans, La., was sentenced today in the Eastern District of Virginia to 18 months in prison and three years of supervised release for aiding and abetting an unregistered agent of a foreign government, namely the People’s Republic of China (PRC), in violation of 18 U.S.C., Sections 2 and 951. Kang pleaded guilty to this offense on May 28, 2008, after being arrested by federal authorities on Feb. 11, 2008… According to a Statement of Facts filed in Court with Kang’s Plea Agreement, the criminal conduct spanned the time period of March 2007 to Feb. 11, 2008. During this period, Kang, a citizen of the PRC and a lawful permanent resident alien of the United States, aided and abetted Tai Shen Kuo in acting in the United States as an agent of the government of the PRC without prior notification to the Attorney General……(Press Zoom, 2 Aug 08)

Woman gets 18 months in Chinese spy case

…Kang, 33, who lived in New Orleans since September, 2007, is one of three people to plead guilty in what the Justice Department said was an espionage operation that sent information about U.S. arms to Taiwan, at least some of it classified, from a Defense Department official ultimately to an unnamed military official with the Peoples Republic of China. At the sentencing hearing, Judge Leonie Brinkema said that Kang was "under the control" of New Orleans furniture salesman Tai Shen Kuo, whom she called the "puppeteer." Kang said she has had a romantic relationship with Kuo since she was 19, and did what he told her to do. It was Kuo, who obtained the military information from Defense Department official Gregg Bergersen, and arranged, sometimes with Kang's help, to transmit the information to the Chinese military official……(Times-Picayune, 1 Aug 08)

Chinese national sentenced for aiding spy

A woman who helped a Chinese spy obtain U.S. military secrets has been sentenced in Virginia to a year and a half in prison. Thirty-three-year old Yu Xin Kang (yoo shin kong) is a Chinese national who had been living in New Orleans with furniture salesman Tai Shen Kuo. Kang at times served as an intermediary for Kuo in helping him get secret information about U.S.-Taiwanese military relations to the Communist government in Beijing. The 18-month sentence issued Friday is less than the 30 months sought by prosecutors….(AP, 1 Aug 08)

Woman to be sentenced in Chinese spy case

…Yu Xin Kang, 33, pleaded guilty May 28 to a single charge of acting as an unregistered agent of a foreign government. The two lead players in the spy operation, New Orleans businessman Tai Shen Kuo, and Gregg Bergersen, a weapons system policy analyst at the Virginia-based Defense Security Cooperation Agency, had previously pleaded guilty to more serious offenses. Bergersen, who the government says provided the classified information to Kuo about arms sales, has already been sentenced to 57 months in federal prison. Kuo, who faces a longer sentence than either Bergersen or Kang, is scheduled to learn his fate Aug. 8. In a filing with U.S. District Court Judge Leonie Brinkema, the Justice Department said that guidelines call for Kang to receive a sentence of between 30 and 37 months. The Justice Department said it would not oppose a "sentence in the low end of that range" because Kang was a "minor participant" in the criminal activity and has cooperated with prosecutors. When she pleaded guilty, Kang told Judge Brinkema that she participated in the espionage operation because she had a "personal relationship" with Kuo, 58……( Times-Picayune, 1 Aug 08)

Defense Department Official Imprisoned for Espionage

Gregg William Bergersen, age 51, of Alexandria, Virginia, was sentenced in the Eastern District of Virginia to 57 months in prison and three years of supervised release for conspiracy to disclose national defense information to persons not entitled to receive it, according to a report obtained by the National Association of Chiefs of Police’s publication, The Chief of Police Magazine. Bergersen pleaded guilty to this offense on March 31, 2008, after being arrested by federal authorities on February 11, 2008… According to a Statement of Facts filed in Court with Bergersen’s Plea Agreement, the criminal conduct spanned the time period of March 2007 to February 2008. During this time, Bergersen was a Weapons Systems Policy Analyst at the Arlington, Va.-based Defense Security Cooperation Agency, an agency within the Department of Defense…..(Canada Free Press, 17 Jul 08)

DOD Official Sentenced for Espionage

…Bergersen, 51 of Alexandria, pleaded guilty in March to providing classified national defense information — information about U.S. military sales to Taiwan — to a New Orleans businessman from March 2007 to February 2008.In exchange for the information, Tai Shen Kuo gave Bergersen gifts, cash payments, dinners and money for gambling trips to Las Vegas. But unknown to Bergersen, Kuo passed the information to an official of the government of the People's Republic of China, according to U.S. Attorney Chuck Rosenberg. Kuo is scheduled to be sentenced in August after pleaded guilty to conspiracy to deliver national defense information to a foreign government. Kuo faces a maximum possible sentence of life in prison when he is sentenced in August, according to Rosenberg. Yu Xin Kang, another conspirator in the case, pleaded guilty to acting as a conduit for information between Kuo and the official from the People's Republic of China. She faces up to 10 years in prison when she is sentenced in August, according to Rosenberg……(Connection, 16 Jul 08)

Former Analyst Sentenced to Prison in Chinese Spy Case

…The judge, Leonie M. Brinkema, rejected the prosecutor’s request that the former analyst, Gregg W. Bergersen, be sentenced to 87 months for having provided sensitive information to Tai Shen Kuo, a native of Taiwan who has lived in Louisiana for more than 30 years. Mr. Kuo duped Mr. Bergersen into believing that he was obtaining information for the government of Taiwan, an ally of the United States. In fact, Mr. Kuo was working for the intelligence service of China, according to court filings. Mr. Kuo and another accomplice, Yu Xin Kang, face possible life terms at their sentencing later this summer……(New York Times, 12 Jul 08)

Former Defense Department Official Sentenced to 57 Months in Prison for Espionage Violation

Gregg William Bergersen, age 51, of Alexandria, Virginia, was sentenced today in the Eastern District of Virginia to 57 months in prison and three years of supervised release for conspiracy to disclose national defense information to persons not entitled to receive it, in violation of 18 U.S.C., Sections 793(d) and (g). Bergersen pleaded guilty to this offense on March 31, 2008, after being arrested by federal authorities on February 11, 2008…According to a Statement of Facts filed in Court with Bergersen's Plea Agreement, the criminal conduct spanned the time period of March 2007 to February 2008. During this time, Bergersen was a Weapons Systems Policy Analyst at the Arlington, Va.-based Defense Security Cooperation Agency, an agency within the Department of Defense. While in this position, Bergersen provided national defense information on numerous occasions to Tai Shen Kuo, a naturalized U.S. citizen and a New Orleans businessman. Much of the information pertained to U.S. military sales to Taiwan and was classified at the Secret level……(Market Watch, 11 Jul 08)

Almost five years in jail for Pentagon worker for China spying

…Gregg William Bergersen was sentenced to 57 months in jail and three years supervised release by a court in Alexandria, Virginia, the US attorney's office for the eastern district of Virginia said in a statement.

The trial of Tai Shen Kuo, a US businessman born in Taiwan who gave information to China, and could be sentenced to death, was set for August 8, the FBI said in a statement…..(AFP, 11 Jul 08)

Spy Cases Raise Concern on China’s Intentions

Gregg W. Bergersen was a Navy veteran who liked to gamble on occasion but spent far more time worrying about how to earn some serious money after he left his career as an analyst at the Defense Department. At 51 and supporting a wife and a child in the Virginia suburbs, he wondered how he could get himself cast in that distinctly Washington role many Pentagon types dream of: a rewarding post-retirement perch at one of the hundreds of military-related companies that surround the capital and flourish off lucrative government contracts and contacts.

Mr. Bergersen believed he had found what he was seeking when he was introduced to Tai Shen Kuo, a native of Taiwan, who had lived in New Orleans for more than 30 years. Mr. Kuo, an entrepreneur who imported furniture from China, was active enough in civic affairs to have been named to a state advisory board on international trade. He told Mr. Bergersen that he was developing a defense consulting company. Now, Mr. Bergersen and Mr. Kuo, along with a third accomplice, are awaiting sentencing in a federal court for their involvement in one of many cases brought in the last year involving the illegal transfer of information to China. The cases have intensified the evaluation in intelligence and law enforcement circles about the breadth of the threat from Beijing. Many have been similar to the one involving Mr. Bergersen, in that prosecutors describe them as carefully planned intelligence operations run by the Chinese government intended to steal national security secrets. Other cases, however, are less clear in their nature; some seem to be closer to violations of commercial export laws, with the transferred information intended to provide Chinese companies a technological benefit. (New York Times)

Chinese national pleads guilty to abetting espionage in DOD secrets case

A Chinese woman who is a permanent resident of New Orleans pleaded guilty Wednesday in the US District Court for the Eastern District of Louisiana to charges of aiding and abetting espionage by passing national defense information to Chinese agents. Yu Xin Kang [CICentre materials] could face 10 years in prison for acting as an intermediary between Louisiana businessman Tai Kuo and Defense Security Cooperation Agency [official website] analyst Gregg William Bergersen. Kang allegedly passed classified military information to Chinese foreign officials…..(Jurist, 29 May 08)

Woman pleads guilty in spy case

…Asked by District Court Judge Leonie Brinkema why she had taken part, Yu Xin Kang, 33, responded that she had a "personal relationship" with one of the two lead players in the spy operation, New Orleans businessman Tai Shen Kuo, 58. It began, she said, when she met him in Beijing at age 19. Kang's attorney, Michael Nachmanoff, later said the relationship was romantic, and that his client had become dependent on Kuo…Kang pleaded guilty to a single count of aiding and abetting an unregistered agent of a foreign government. She faces a maximum sentence of 10 years, although Brinkema is expected to give her significantly less jail time at a sentencing hearing Aug. 1. Guidelines call for between three and four years in prison. Kang's plea brings to a close a case that prosecutors described as a conspiracy to pass confidential information to a Chinese government, part of what they say is an expanded espionage effort by the country's communist-led government….(Nola, 29 May 08)

Chinese Woman Found Guilty in U.S. Spy Case

Yu Xin Kang, a Chinese woman and an alien resident living in New Orleans in the United States was convicted on Wednesday with providing top-secret U.S. military secrets to the Communist regime in China. The classified information, about U.S. arms sales to Taiwan, was obtained from a Defense Department weapons analyst and passed on to a Chinese agent. Kang, who pleaded guilty, faces up to 10 years in prison…Bergersen is supposed to have sold military information about the Taiwan arms shipments, classified as "top secret", to Tai Shen Kuo, 58, a naturalized citizen also from New Orleans. Kuo is believed to have passed on the information to Kang, who passed it on the Communist regime in China. Bergersen admitted during his plea that he had provided the information to Kuo, but had been duped into believing that Kuo was working for a Taiwanese business. He also declared that he had made it clear to Kuo that the information was classified and not to be released. Kuo is believed to have treated Bergersen to lavish gifts, dinners and money for gambling at Las Vegas. The Chinese Communist regime's Foreign Ministry spokesperson had dismissed U.S. allegations of spying in early February, right after the federal case was first announced and a Boeing employee of Chinese origin, Dongfan "Greg" Chung, went on trial for providing military information from Rockwell and Boeing to the Chinese regime…..(Epoch Times, 28 May 08)

Chinese woman admits to helping Pentagon-linked spying

A Chinese woman pleaded guilty in a US court Wednesday to helping to spy for Beijing in a Pentagon-linked espionage case, the Justice Department said. Yu Xin Kang, 33, admitted to "aiding and abetting" a Taiwanese-American, Tai Shen Kuo, who had earlier pleaded guilty to spying for China involving sensitive military secrets……(AFP, 28 May 08)

New Orleans Woman Pleads Guilty to Aiding and Abetting Unregistered Agent of China

Yu Xin Kang, age 33, of New Orleans, La., pleaded guilty today in the Eastern District of Virginia to a one-count criminal information charging her with aiding and abetting an unregistered agent of a foreign government, namely the People's Republic of China (PRC), in violation of 18 U.S.C., Sections 2 and 951. Kang was arrested on Feb. 11, 2008 on a criminal complaint…According to a Statement of Facts filed in Court with Kang's Plea Agreement, the criminal conduct spanned the time period of March 2007 to Feb. 11, 2008. During this period, Kang, a citizen of the PRC and a lawful permanent resident alien of the United States, aided and abetted Tai Shen Kuo in acting in the United States as an agent of the government of the PRC without prior notification to the Attorney General. Kuo, a naturalized U.S. citizen and New Orleans businessman, maintained a close relationship with an official of the government of the PRC and provided him with sensitive U.S. government information, including national defense information. The PRC official directed Kuo in this effort, giving him instructions on information and documents to collect and paying him approximately $50,000.00 for completing those tasks. Kuo, as an unregistered agent of the PRC, operated within the United States under the PRC official's direction, committing numerous acts of espionage during the time period of the conspiracy…Kuo obtained national defense information from Gregg W. Bergersen - a Weapons Systems Policy Analyst at the Arlington, Va.-based Defense Security Cooperation Agency, an agency within the Department of Defense - on several occasions. The information pertained primarily to U.S. military sales to Taiwan and U.S. military communications security and was classified at the Secret level…..(Sun Herald, 28 May 08)

Third defendant in Chinese spy case expected to plead guilty today

Yu Xin Kang, 33, a Chinese national who federal authorities say was part of an espionage operation in New Orleans, is scheduled to plead guilty today to a charge of aiding and abetting an unregistered agent of a foreign government, according to court documents. The guilty plea would bring to a close a case the Justice Department described as a conspiracy to provide information about U.S. weapons sales to Taiwan to the government of the Peoples Republic of China . It has already resulted in guilty pleas for two others. New Orleans businessman Tai Shen Kuo, 58, pleaded guilty on May 13 to a single count of conspiracy to deliver national defense information to a foreign government. Earlier, Gregg William Bergersen, a former Defense Department official, pleaded guilty to providing information about the weapons' sales to Kuo. While Kuo and Bergersen pled guilty to single counts of espionage, Kang is expected to plead guilty to a significantly reduced charge with a maximum sentence of 10 years. With sentencing guidelines, she could go to prison for just three to four years. The two other participants in the Chinese spy case face sentences of up to life in prison, although their attorneys are hoping for sentences of about 10 years……(Times-Picayune, 28 May 08)

Spy for Chinese pleads guilty

…Tai Shen Kuo, 58, a businessman who made a name and wealth for himself in more than three decades in Houma and New Orleans, is being held up by the U.S. Justice Department as representative of a new spying threat from China…Kuo signed the plea deal Tuesday in Virginia, agreeing to one count of conspiracy to deliver national defense information to a foreign government. The crime carries a possible life sentence, although Kuo's attorney said prosecutors agreed to recommend a lighter sentence. Kuo signed a statement saying he cultivated a friendship with a Pentagon weapons analyst, gathered secrets about U.S. weapons sales to Taiwan and other American military interests, and passed them along to an unnamed Chinese government official. The damage caused by Kuo's spying is unclear….(Times Picayune, 14 May 08)

Man Gave Military Secrets To China

…Tai Shen Kuo, 58, said in court papers that he plied the official with gifts, cash and dinners to secure classified projections of U.S. military sales to Taiwan. He was paid $50,000 to pass the materials to his Chinese contact through e-mails and telephone calls to Beijing, the documents said. Kuo pleaded guilty in U.S. District Court in Alexandria to conspiracy to deliver national defense information to a foreign government. He faces up to life in prison when he is sentenced Aug. 8. The former official, Gregg W. Bergersen, pleaded guilty last month and could receive up to 10 years in prison. He was a weapons systems policy analyst at the Arlington-based Defense Security Cooperation Agency before resigning a week before his plea……(Washington Post, 14 May 08)

Former Houma businessman pleads guilty to espionage charges

The former Houma restaurateur and tennis pro arrested three months ago by the FBI on international espionage charges pleaded guilty in federal court today to passing national defense information to China. Tai Shen Kuo, 58, a graduate of Nicholls State University in Thibodaux, and a longtime Houma homeowner, could face life in prison at his sentencing, set for Aug. 8. “By providing classified information to a foreign government, Tai Shen Kuo compromised our national security for his own profit,” said FBI Executive Assistant Director Arthur M. Cummings in a news release. “The FBI is committed to working with our partners in the law enforcement and intelligence communities to safeguard America's sensitive secrets from those who would do us harm.” Kuo’s arrest was part of a federal investigation that also resulted in charges against an Arlington, Va.-based defense analyst (Bergersen) and a 33-year-old Chinese national (Kang) who allegedly acted as an intermediary between Kuo and an unnamed government official of the People’s Republic of China….(Houma Today, 13 May 08)

La. furniture salesman guilty of spying for China

A New Orleans furniture salesman pleaded guilty Tuesday to spying for the Chinese government and providing Beijing with secret information on military relations between the U.S. and Taiwan. Tai Shen Kuo, a naturalized U.S. citizen with prominent family connections in Taiwan, provided gambling money and promises of a job to a Defense Department analyst who gave him classified information in 2007. Taiwanese military officials have said the disclosures caused some damage but did not compromise key technology… Kuo pleaded guilty to a single count of espionage in U.S. District Court in Alexandria. In court papers, Kuo admitted that he received $50,000 from the Chinese government for his efforts. Kuo provided the defense analyst, Gregg W. Bergersen, several thousand dollars in gambling money on trips the pair took to Las Vegas, as well as promises of employment at a company Kuo hoped to establish. Bergersen, of Alexandria, Va., pleaded guilty to his role in March and faces up to 10 years in prison… A third person charged in the case, Chinese national Yu Xin Kang, who allegedly acted as a go-between for Kuo and Chinese agents, is in jail awaiting trial.…..(AP, 13 May 08)

U.S. citizen born in Taiwan admits spying for China

A U.S. citizen born in Taiwan pleaded guilty on Tuesday to passing national defense secrets to China for about $50,000, the Justice Department said. It said Tai Shen Kuo, 58, a New Orleans businessman arrested in February, admitted his guilt in federal district court in Alexandria, Virginia. He faces up to life in prison at his sentencing scheduled for August 8. According to court documents, the conspiracy took place from March 2007 until this February. Kuo obtained the secret information, mainly involving U.S. military sales to Taiwan and U.S. military communications security, from Gregg Bergersen, who was a U.S. Defense Department analyst…..(Reuters, 13 May 08)

New Orleans Businessman Pleads Guilty to Espionage Charge Involving China

Tai Shen Kuo, age 58, of New Orleans, La., pleaded guilty today in the Eastern District of Virginia to a one-count criminal information charging him with conspiracy to deliver national defense information to a foreign government, namely, the People's Republic of China (PRC), in violation of 18 U.S.C., Section 794(a), (c). Kuo was arrested on Feb. 11, 2008 on a criminal complaint charging this same offense…According to a Statement of Facts filed in Court with Kuo's Plea Agreement, the criminal conduct spanned the time period of March 2007 to February 2008. During this time, Kuo, a naturalized U.S. citizen, obtained national defense information from Gregg W. Bergersen -- a Weapons Systems Policy Analyst at the Arlington, Va.-based Defense Security Cooperation Agency, an agency within the Department of Defense -- on several occasions. The information pertained primarily to U.S. military sales to Taiwan and U.S. military communications security and was classified at the Secret level….(Sun Herald, 13 May 08)

Defense Department Bigwig Pleads Guilty to Espionage on Behalf of China

Gregg William Bergersen, residing in Alexandria, Virginia, pled guilty on Monday to a one-count of conspiracy to disclose national defense information to persons not entitled to receive it. Bergersen was arrested on February 11, 2008 on a criminal complaint charging this same offense. Justice Department and Federal Bureau of Investigation officials made the announcement after the plea was accepted by US District Judge Leonie M. Brinkema. Bergersen faces up to ten years in prison and he's scheduled for sentencing on June 20, 2008…..(National Ledger, 2 Apr 08)

Recent Espionage Cases Involving China

…..(Washington Post, 3 Apr 08)

Former Defense Dept. Employee Pleads Guilty To Espionage Charges

...Gregg W. Bergersen, 51, entered his guilty plea in a District Court in Alexandria, admitting he provided unauthorized information on U.S. weapons sales to Taiwan between March 2007 and February 2008. Bergerson said that although he leaked classified defense information to Tai Shen Kuo, a New Orleans-based businessman and was aware the material would reach Taiwan, Bergerson attorney claims his client "was unaware that Kuo was a security official of the People's Republic of China, that he was involved in the PRC." Bergerson, who received cash and gifts in exchange for information, was a weapons systems analyst for the Defense Security Cooperation Agency in Arlington, Virginia before resigning last week. He will be sentenced next week and could face up to 10 years in prison for his role in the espionage case…..(All Headline News, 1 Apr 08)

US Charges 2 in China Spy Case

A Defense Department analyst and a former engineer for Boeing Co. were accused Monday in separate spy cases with helping deliver military secrets to the Chinese government…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…In the second, unrelated case, former Boeing engineer Dongfan "Greg" Chung, 72, was charged with 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, prosecutors said. Chung, a naturalized U.S. citizen, was indicted last week on espionage, conspiracy and obstructing justices charges that were unsealed Monday…..(Time Magazine, 1 Apr 08)

Former Pentagon official pleads guilty in China spy case

A former Pentagon official pleaded guilty in court Monday to an espionage charge over the disclosure of secret data to an alleged Chinese agent in the US. Gregg Bergersen said he was unaware that the Taiwan-born businessman was passing the information to China. Mr. Bergersen, a weapons systems policy analyst who resigned his job last week, could face up to 10 years in prison…The leaked data concerned US weapons programs for Taiwan, which China has threatened to regain by force, if necessary. Taiwan is a potential flash point for US-China rivalry in East Asia, and US military support for Taiwan is an irritant to Beijing. In turn, Taiwan has flagged China's steady buildup of missiles capable of hitting Taiwan.. Last week, US officials anxiously contacted China after the Pentagon revealed that it had sent nuclear fuses to Taiwan by mistake in 2006, an embarrassing admission that raised eyebrows over US safeguards on nuclear-related technology, reports the Los Angeles Times. The admission sent mixed signals about US-Taiwan relations… In two separate developments this week, a judge in California agreed to postpone until next May the trial of a Chinese-American engineer charged with stealing military and aerospace trade secrets on behalf of China, the Associated Press reports, and a federal court sentenced a Chinese-born engineer working on a Navy warship to 24 years in jail for trying to pass "sensitive data" to China, Bloomberg reports. In Monday's trial, the Washington Post reports that Tai Shen Kuo, the alleged Chinese agent, plied Bergersen with money and gifts, including money for gambling, though a judge said that money might not have been the prime motivation. A prosecutor told the district court in Alexandria, Va. that Mr. Kuo had cultivated Bergersen as a source of information, without explicitly agreeing to buy data from him.……(Christian Science Monitor, 1 Apr 08)

Arms analyst admits role in spy ring

...Gregg William Bergersen pleaded guilty to a single count of conspiracy to disclose national defense secrets and faces up to 10 years in prison and a $250,000 fine. He has already handed over $7,000 in cash -- presumably paid to him in exchange for details of U.S. weapons sales to Taiwan -- along with a black pearl necklace, according to documents filed in U.S. District Court in Alexandria, Va. "This case serves as a reminder that espionage networks are relentless in their efforts to steal our secrets and continue to pose a serious threat to our national security," said Patrick Rowan, acting assistant attorney general for national security. The guilty plea ramps up the pressure on Tai Shen Kuo, a naturalized U.S. citizen and furniture store owner in New Orleans, who was arrested Feb. 11 and accused of spying for China. Kuo and Yu Xin Kang, a Chinese citizen investigators say was a conduit between Kuo and an unnamed Chinese government official, have been in custody since their arrest. They face life in prison if convicted. An account of the government's case, signed by Bergersen and filed in court Monday, said the defense analyst believed that Kuo was a Taiwanese businessman seeking contracts to develop the Po Sheng communications system designed to help protect Taiwan from a military incursion from mainland China. "Bergersen was unaware that Kuo also maintained secret contact with a foreign official of the Peoples' Republic of China to whom Kuo would provide sensitive U.S. government information," the documents said, suggesting why Bergersen was not charged with espionage…..(Times-Picayune, 1 Apr 08)

Former Pentagon Official Pleads Guilty to Espionage

Gregg W. Bergersen entered his plea in U.S. District Court in Alexandria to one count of conspiracy to communicate national defense information to people not entitled to receive it, which falls under federal espionage statutes. Bergersen admitted in court documents that he provided information on projected U.S. military sales to Taiwan to Tai Shen Kuo, a New Orleans businessman of Taiwanese descent. Kuo, who also was charged, then passed the material to the Chinese government through e-mails to his handlers in Beijing, court documents said. Although Bergersen, 51, said he expected that the sensitive material would reach Taiwanese officials, Mark D. Cummings, his attorney, told the court that his client "was unaware that Kuo was a security official of the People's Republic of China, that he was involved in the PRC."… But U.S. District Judge Leonie M. Brinkema said at yesterday's hearing that money was apparently not Bergersen's primary motivation and that she wanted to learn more about his motives before sentencing him on June 20. Bergersen faces up to 10 years in prison……(Washington Post, 1 Apr 08)

US weapons analyst Gregg Bergersen admits leak to China

…Gregg Bergersen, 51, a weapons analyst at the Defense Security Cooperation Agency who held top secret security clearances, was arrested last month. Prosecutors alleged he divulged military secrets to New Orleans businessman Kuo Tai, who turned over the information to a Chinese foreign agent. Bergersen pleaded guilty to a single count of conspiring to communicate national defense information to a person not entitled to receive it and faces up to 10 years in prison when sentenced on June 20. Among the information Bergersen passed to Mr Kuo were details of Taiwan's new Po Sheng air defence system. He also admitted giving Mr Kuo projections of US weapons sales to Taiwan over the next five years. Taiwanese military officials have said the disclosures caused some damage but did not compromise key technology… Mr Kuo and a third defendant, Yu Xin Kang, a 33-year-old Chinese national, face more serious charges which can carry a life sentence. Bergensen has agreed to testify against Mr Kuo and Mr Yu. Mr Kuo, 58, is a naturalised US citizen and the son-in-law of Xue Yue, a Chinese nationalist general who was a close associate of Chiang Kai-shek, the former Chinese military leader……(Telegraph, 1 Apr 08)

Pentagon analyst admits selling secrets to Chinese agent

…Last week a California engineer (Chi Mak) was convicted of conspiring to pass sensitive data on Navy ships to Beijing.

Today, in a separate case, Gregg Bergersen of the Defense Security Cooperation Agency similarly admitted conspiring to communicate national defense information to a person not entitled to receive it, as the Associated Press writes. Bergersen, 51, of Alexandria, Va., pleaded guilty in federal court to giving the data to New Orleans furniture salesman Kuo Tai-sheng, whom the Justice Department accuses of working for the Chinese government. The Justice Department said Kuo had given Bergersen thousands of dollars in "gifts, cash payments, dinners, and money for gambling during trips to Las Vegas" between March 2007 and February, when he was arrested. Bergersen told investigators he thought Kuo worked for Taiwan's defense ministry and did not know he was in contact with a Chinese official. He is to be sentenced June 20 and faces a possible prison term of up to 10 years……(USA Today Blog, 1 App 08)

US defence analyst admits spying

…Gregg Bergersen, 51, a weapons analyst who held top secret security clearances, was arrested last month. Prosecutors alleged he divulged secrets to Louisiana businessman Tai Kuo, who turned them over to a Chinese agent. Bergersen pleaded guilty to a single count of conspiring to communicate national defense information to a person not entitled to receive it… The plea bargain requires Bergersen to testify against the other defendants. Mr Kuo, 58, is a naturalized US citizen and a native of Taiwan. He is the son-in-law of Xue Yue, a Chinese nationalist general who was a close associate of Chiang Kai-shek. Prosecutors allege that Kang, 33, served as the go-between for Kuo and the People's Republic of China……(Independent, 1 Apr 08)

Defense analyst Gregg William Bergersen worked in the Pentagon's foreign military sales program

The US Justice Department says a defense analyst arrested earlier this year has pleaded guilty to passing classified information to an agent for the Chinese government. Gregg William Bergersen worked in the Pentagon's foreign military sales program. He started handing secret information since March last year to Tai Shen Kuo, a Taiwan-born US citizen, who then passed on the information to an unnamed Chinese government official……(ABC, 1 Apr 08)

Defense Department Official Pleads Guilty to Espionage Charge Involving China

Gregg William Bergersen, age 51, of Alexandria, Virginia, pled guilty today to a one-count criminal information charging him with conspiracy to disclose national defense information to persons not entitled to receive it, in violation of 18 U.S.C., Sections 793(d) and (g). Bergersen was arrested on February 11, 2008 on a criminal complaint charging this same offense…..(DOJ, 31 Mar 08)

Pentagon analyst admits espionage

A US defense department analyst has admitted giving classified information about military communication systems to a businessman working for China. Gregg Bergersen, 51, pleaded guilty to a charge of conspiracy to disclose national defense information "to persons not entitled to receive it"…Mr Bergesen's lawyer, Mark Cummings, said that there had been no explicit exchange of money for information. For instance, Mr Bergesen had won $3,000 from Mr Kuo in cash in a poker game in Las Vegas in April 2007, he said. "In hindsight, he understands that the money was given to him in anticipation that he would provide documents," Mr Cummings added. Ms Kang ferried the information between Mr Kuo and Chinese officials, the FBI alleged. Mr Kuo, 58, and Mr Kang, 33, face a more serious charge of "conspiracy to disclose national defense information to a foreign government". They face up to life in prison if convicted…..(BBC, 31 Mar 08)

Military official says damage to Taiwan air defense system limited after leak

…The Po Sheng system — a sophisticated command, control and communications network that Taiwan is purchasing from U.S. defense contractor Lockheed Martin — was one of the targets highlighted in an espionage affidavit filed earlier this month against a Pentagon analyst in a U.S. court. The analyst, Gregg W. Bergersen, was accused of providing classified information to Kuo Tai-sheng, a dual U.S.-Taiwanese national, identified in the affidavit as a Chinese agent. Speaking to reporters Tuesday, Taiwanese Defense Ministry spokesman Yu Sy-tue said the Po Sheng system was still intact because the system's key communications technology remained in Taiwanese hands….(AP, 19 Feb 08)

China Denies Justice Department’s Accusations of Espionage

China denied Thursday that it was conducting espionage operations in the United States, rebutting accusations by the Justice Department this week that four people had passed military secrets to the Chinese government…Prosecutors said the two cases were part of Beijing’s determined efforts to acquire American technology through espionage……(New York Times, 15 Feb 08)

Defense Official in Chinese Spy Case Freed on Bond

A Defense Department official charged in a Chinese espionage scheme was ordered released yesterday on $100,000 bond, but the brief detention hearing shed no light on the case against the weapons policy analyst. Prosecutors agreed that Gregg W. Bergersen could return to his home in the Alexandria section of Fairfax County to await trial on espionage charges. He will be monitored electronically and forced to surrender his passport……(Washington Post, 15 Feb 08)

Even Spies Embrace China's Free Market

Engineers Lan Lee and Yuefei Ge had drafted a business plan that they promised would roil the U.S. microchip industry. Using blueprints they allegedly stole from their Silicon Valley employer, the men proposed to reproduce a super-fast chip in China at a much lower cost. The documents, recovered by FBI agents, included a contract with a venture-capital firm in Beijing that would bankroll part of the estimated $3.6 million the would-be entrepreneurs needed and seek additional funding from the Chinese government. The case of Lee and Ge, who pleaded not guilty in October to charges of theft of trade secrets and the more serious charge of economic espionage to benefit a foreign government, is one of more than a dozen involving the alleged sale or attempted sale of purloined technology to China that are making their way through U.S. courts this year...China's efforts to become a technology power began with a government initiative known as the 863 program. Launched under Deng Xiaoping in 1986, the program paid for $1.3 billion worth of research and development throughout the country. Its goal was to narrow the gap between China and the West in a dozen sectors, including space tracking, nuclear energy and information technology….(Washington Post, 15 Feb 08)

Alleged Chinese spy case moved to Virginia

A 33 year old Chinese woman arrested by the FBI Monday at her Uptown apartment on charges of helping a well-known Taiwanese-American businessman here pass U.S. military secrets to China will soon be moved to Alexandria, Va., where the case against her is pending...Yu Xin " Katie" Kang, a green card permanent resident who has lived in New Orleans since last fall, told Magistrate Louis Moore she wanted to be moved as soon as possible to Alexandria, Va., where a federal court will hear the government's case against her and two co-defendants. Kang faces trial with Tai Shen Kuo, a well liked New Orleans and Houma restaurateur for whom she allegedly acted as an intermediary with an unnamed Chinese official, and Defense Department weapons expert Gregg William Bergersen, whom Kuo allegedly paid for information about U.S. military sales to Taiwan......(Times Picayune, 14 Feb 07)

US official charged in espionage case to be released on bond

A judge is allowing a Defense Department analyst accused of helping deliver military secrets to China to be released on bond pending trial. Gregg Bergersen is accused in federal court of passing information about U.S.-Taiwan military relations to a New Orleans furniture salesman (Tai Kuo) who allegedly forwarded the information to the Chinese government……(AP, 14 Feb 08)

Alleged Chinese spy case moved to Virginia

Yu Xin " Katie" Kang, a green card permanent resident who has lived in New Orleans since last fall, told Magistrate Louis Moore she wanted to be moved as soon as possible to Alexandria, Va., where a federal court will hear the government's case against her and two co-defendants. Kang faces trial with Tai Shen Kuo, a well liked New Orleans and Houma restaurateur for whom she allegedly acted as an intermediary with an unnamed Chinese official, and Defense Department weapons expert Gregg William Bergersen, whom Kuo allegedly paid for information about U.S. military sales to Taiwan…..(Times Picayune, 14 Feb 07)

Businessman's spy-case arrest stuns associates

The Taiwanese-American businessman arrested Monday for allegedly passing military secrets to China planted roots in southeast Louisiana three decades ago, where he has lived a relatively high-profile life, maintaining wide-ranging political and business connections. In addition to being a well-liked, neighborly restaurateur in Metairie and Houma, Tai Shen Kuo, 58, specialized in connecting companies in Louisiana and Mississippi with emerging opportunities in China. In 1992, then-Gov. Edwin Edwards appointed Kuo to a commission with bond-writing powers, the Louisiana Imports and Exports Trust Authority, said David Crais, the former chairman of the board. As an active member of the now-defunct commission, Kuo often lobbied state legislators for more money to promote trade overseas, Crais said......(New Orleans Times-Picayune, 13 Feb 08)

Man accused of spying for China just a normal dad, says best friends' son

Gregg Bergersen is accused of spying for China, but he's a regular "American Dad" to his best friends' son..."They're wealthy, they're comfortable, they have nice cars, they take vacations," he said. "That's the craziest thing about it; he didn't need money. He used to travel a lot.".....(New York Daily News, 13 Feb 08)

Experts see spying case at NASA as wake-up call

..."The sky is not falling, but don't be naive and deny there are lots of groups out there who want to find out about our space program," said Jim Oberg, an engineer and consultant and an expert on the Chinese and Russian space programs. he worry is that China can convert stolen information into military technologies. "Any improvement made to a Chinese space rocket is folded into a military missile," Oberg said......(Orlando Sentinel, 13 Feb 08)

The New Space Race: China vs. US

...The scale of Chung's alleged espionage is startling. According to the Justice Department, Chung may have been providing trade secrets to Chinese aerospace companies and government agents since 1979, when he was an engineer at Rockwell International, a company acquired by Boeing in 1996. He worked for Boeing until his retirement in March 2003, and continued to work as a contractor for the company until September 2006. The indictment alleges that Chung gave China documents relating to the B-1 bomber and the Delta IV rocket, which is used to lift heavy payloads into space, as well as information on an advanced antenna array intended for the Space Shuttle......(Time Magazine, 13 Feb 08)

Four arrested on charges of spying for China

…Beijing's spying style is difficult to counteract, some experts say. China does not utilize a few, highly placed, and deeply embedded agents as the Soviet Union did. Instead, it employs a vast, decentralized network of Chinese and China-born students, business people, and scientists, and acquires information one small bit at a time…In 1999, Los Alamos National Lab scientist Wen Ho Lee was charged with stealing nuclear secrets for China. In 2000, all but one charge was dropped. Many Chinese-Americans felt he was being singled out because of his ethnic heritage……(Christian Science Monitor, 13 Feb 08)

Defense Official Is Charged in Chinese Espionage Case

They would meet every few months at restaurants in Northern Virginia, or sometimes take in a show in Las Vegas. Once, the Defense Department official emerged with a half-inch stack of hundred-dollar bills stuffed in his shirt pocket, federal officials said yesterday. His Chinese contact reported back to a handler in Beijing. But FgreggBI agents were tracking the pair, and they moved in yesterday and arrested both men in a case that federal officials said highlights China's increasingly aggressive efforts to obtain U.S. military and trade secrets. The FBI raids came hours before the Defense official, Gregg W. Bergersen, and the Chinese businessman, Tai Shen Kuo, had reservations to meet again at an Alexandria restaurant......(Washington Post, 12 Feb 08) video

Alexandria Defense Analyst Charged In Spy Case

...Prosecutors said defense analyst Gregg W. Bergersen, 51, of Alexandria, Va., sold a top secret list of all military technology scheduled for sale to Taiwan for the next five years to a Chinese-born New Orleans-based furniture trader. In return, the businessman, identified as Tai Kuo, 58, a naturalized U.S. citizen, forwarded the information to the Chinese government........(WUSA-TV, 11 Feb 08) video

4 arrests in China spy cases

…Gregg William Bergersen, 51, of Alexandria, worked for the Defense Security Cooperation Agency (DSCA) in Arlington and was arrested at his home on charges of selling secrets to foreign agents…One Pentagon official said the case is potentially very damaging because Mr. Bergersen was director of the Navy's command, control, communications and intelligence office in the early 2000s. The office has access to the most sensitive information on U.S. warfighting capabilities, a key target of China's military spies. Mr. Bergersen was employed as a weapons system policy analyst for the DSCA, which is in charge of U.S. arms sales to foreign nations. He held a top-secret clearance...The spy operation appeared to have been a "false flag" operation that fooled Mr. Bergersen into supplying secrets to Taiwan, a