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Yahoo
7 minutes ago
- Yahoo
Cadence to pay $140m fine for illegal tech exports to China
The US Department of Justice (DOJ) announced that Cadence Design Systems has agreed to plead guilty and pay more than $140m in penalties for exporting semiconductor design tools to a Chinese military university. The company based in San Jose, California, will pay nearly $118m in criminal penalties. This follows its admission of violating export controls by selling electronic design automation (EDA) technology to the National University of Defense Technology (NUDT), which is associated with China's Central Military Commission. National Security Assistant Attorney General John Eisenberg said: 'Cadence has agreed to accept responsibility for unlawfully exporting sensitive semiconductor design tools to a restricted Chinese military university and has implemented a strong export compliance programme to help prevent any further illegal transmission of American technology. 'American ingenuity is one of our Nation's most precious assets, and the National Security Division will vigorously enforce US export control laws to protect the technological advantage we enjoy because of that ingenuity.' NUDT, added to the US Department of Commerce's Entity List in 2015, is believed to have used US-origin components to develop supercomputers for military purposes. From February 2015 to April 2021, Cadence and its subsidiary in China exported EDA tools without obtaining necessary licences, despite knowing NUDT's status on the Entity List. Cadence's court documents reveal employees facilitated exports to NUDT through Central South CAD Center (CSCC), an alias for the Chinese university. The company continued transactions until September 2020 when it ended its relationship with CSCC due to its ties with NUDT. The US Bureau of Industry and Security (BIS) also announced a parallel civil enforcement settlement, with Cadence agreeing to pay over $95m in civil penalties. Further investigation revealed that employees concealed exports' true destination from Cadence's compliance personnel, said the DOJ. The employees also used aliases in communications to avoid detection. Additionally, Cadence transferred contracts from CSCC to Phytium Technology, another entity linked with NUDT. This was before placing Phytium on export hold in March 2021. Following the DOJ and BIS crediting Cadence's payments under the coordinated agreements, the company will pay a total of over $140m in combined net criminal and civil penalties and forfeiture. The resolution awaits approval from a federal judge in the Northern District of California. The Federal Bureau of Investigation and BIS's Office of Export Enforcement conducted investigations into the case. "Cadence to pay $140m fine for illegal tech exports to China" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


Atlantic
10 minutes ago
- Atlantic
A Casualty of Trump's FBI Purge Speaks Out
Michael Feinberg had not been planning to leave the FBI. But on May 31, he received a phone call from his boss asking him about a personal friendship with a former FBI agent who was known for criticizing President Donald Trump. Feinberg, an assistant special agent in charge at the FBI's field office in Norfolk, Virginia, realized right away that he was in the crosshairs of the bureau's leadership at an unusually chaotic time. If his 15-year career at the bureau was coming to an end, he wanted to depart with at least some dignity rather than being marched out the door. By the following afternoon, he had resigned. The FBI has long seen itself as an organization built on expertise. Its founder, J. Edgar Hoover, was an early and devoted advocate of professionalizing the government bureaucracy, to the point of mandating that agents wear a dark suit and striped tie. Now, however, the bureau is in the early stages of something like a radical deprofessionalization. The most important quality for an FBI official to have now appears to be not competence but loyalty. The exiling of Feinberg and others like him is an effort to engineer and accelerate this transformation. Feinberg's boss, Special Agent in Charge Dominique Evans, didn't allege any misconduct on his part, Feinberg told me. Rather, as Feinberg set out in his resignation letter the following day, Evans explained that FBI Deputy Director Dan Bongino had found out that Feinberg had maintained a friendship with the former counterintelligence agent Peter Strzok, a longtime target of Trump's ire. During Trump's first term, Strzok was fired from the FBI—and became a recurring target of Fox News segments—after the Justice Department released text messages in which he'd disparaged the president. Trump has repeatedly attacked him over his work on the bureau's 2016 investigation into Russian election interference (a topic of renewed interest for the president these days). The association between Feinberg and Strzok was enough for the bureau to cancel a potential promotion for Feinberg, he told me. Evans, Feinberg said, suggested that he might face demotion, and that he would soon have to take a polygraph test about his friendship with Strzok. He quit instead. (The FBI declined to comment on what it characterized as a personnel matter; when I reached out to Norfolk in hopes of speaking with Evans, the field office declined to comment as well.) Listen: The wrecking of the FBI In his resignation letter, Feinberg lamented the 'decay' of the FBI. 'I recount those events more in sorrow than in anger,' he wrote. 'I love my country and our Constitution with a fervor that mere language will not allow me to articulate, and it pains me that my profession will no longer entail being their servant.' Since leaving the federal workforce, he has decided to speak out—because, he told me, agents still at the bureau who fear retribution asked him to. Feinberg is now planning to spend time writing about these issues while he—like many other government employees forced out by this administration—figures out what to do next. In a recently published essay, he argued that the FBI has become obsessed with 'ideological purity and the ceaseless politicization of the workforce,' which 'makes us all less safe.' Feinberg's background is not that of an anti-Trump crusader. He was vice president of the Federalist Society chapter at Northwestern Law School, from which he graduated in 2004, and considers himself a conservative; today, he often uses the work of the conservative political philosopher Edmund Burke as a conversational reference point in discussions of politics. He joined the FBI in 2009, he told me, because he saw it as the 'best vehicle' through which he could help 'protect both United States interests in the world and the rule of law on the domestic front.' When he and I first met, sometime around the beginning of the first Trump administration, Feinberg was working on counterintelligence investigations against China. Such was his commitment to the job that he refused on principle to go visit the giant pandas loaned by the Chinese government to the National Zoo. Feinberg once trained as both a gymnast and a boxer, and still carries himself with a scrupulous economy of motion. He didn't talk about the details of his job much, but we turned out to share an interest in film noir and indie rock, subjects he approached with the same focus and intensity that he applied to matters of national security. I came to consider him a friend. At that point, he was already struggling to understand a conservative movement that seemed to have abandoned many of the principles that had attracted him in the first place. Trump, in his second term, has intensified his efforts to transform ostensibly apolitical institutions into tools of his own personal power. This is a dangerous strategy in whatever form it takes: Eating away at government expertise, whether at the National Weather Service or the Food and Drug Administration, places lives at risk. But Trump's personalist approach is particularly dangerous when applied to the agencies that can detain, prosecute, and imprison people. In a recent conversation, Feinberg recalled the sociologist Max Weber's famous definition of the state as the entity with a monopoly on the legitimate use of force. 'Organizations like the FBI are the tool by which that force is exerted,' he said. 'So you need them to be politically pure.' Otherwise, the risk grows that the government's violence will be brought down on people who are disfavored by those in power. The FBI does not have an impeccable track record in this area. In addition to his focus on technocratic institution-building, Hoover left behind an unsettled legacy of paranoia and bureaucratic power politics as well as a willingness to harass political enemies, from which the bureau has never quite managed to disentangle itself. Former FBI Director James Comey kept on his desk Hoover's approved application to wiretap Martin Luther King Jr., which the bureau planned to use as part of a campaign to drive the civil-rights leader to suicide—a reminder, Comey said, of what happens when those in power 'lack constraint and oversight.' Since Hoover's death, the FBI has built up thickets of procedures in an effort to avoid precisely this kind of political targeting. Yet an FBI without constraint or apolitical oversight is exactly what Trump wants, and what Bongino and FBI Director Kash Patel seem to be working toward. Trump launched his 2024 campaign by declaring to his supporters, 'I am your retribution,' and in their previous lives as MAGA influencers, both Patel and Bongino voiced support for locking up the president's opponents. Citing 'Justice Department sources,' Fox News recently reported that the FBI has opened a criminal investigation into former intelligence chiefs who led the government's assessment of Russian election interference in 2016. In the first Trump administration, such a blatant use of the FBI for political ends would have been an unthinkable breach of law-enforcement independence. But the FBI's new leadership has been pushing out many of those who might object. So many people have been driven away, in fact, that after his departure, Feinberg found himself adopted by what he calls an 'exile community' of former Justice Department and FBI officials working to help one another adjust to post-government life. Many have found support in the organization Justice Connection, founded by a longtime Justice Department lawyer to provide support for employees leaving the department. 'The sad thing,' Feinberg told me, is that these exiles began their government careers 'with the purest and noblest of intentions.' They're exactly the kind of public servants you'd want steadying the tiller at a time like this, and therefore exactly the people whom Patel and Bongino sought to be rid of. Others who have so far escaped notice are counting down the days until they can retire. Feinberg worries about how this attrition will affect the FBI's culture going forward. He worries about the dwindling number of FBI agents with solid values who are still trying to hang on. Without old hands around to voice principled objections, 'newer and younger employees are going to become acculturated to a politicized bureau,' he told me. 'That will seem normal to them.' New agents will also arrive at a bureau much more directed toward prioritizing immigration arrests. Feinberg spent the first few months of the second Trump administration as his office's acting head, struggling to manage resources after agents were pulled into assisting with ICE roundups. In one instance, Feinberg became aware of a request from an FBI agent to purchase face coverings. Anxiety was building among agents over rumors of immigration officials being filmed and doxxed on social media, and ICE employees had begun hiding their identities. Now it seemed that FBI agents in Norfolk wanted to follow ICE's lead. 'I was absolutely furious,' Feinberg told me. 'We live in a democracy. We are an organization that serves the public. We do not hide from our actions.' He conferred with others in the office's leadership, and they agreed to quietly prohibit office funds from being spent on masks. Brandon del P ozo: Take off the mask, ICE As we spoke, Feinberg emphasized that he didn't necessarily object to the FBI being involved in immigration enforcement. Every president, he said, gets to choose how to direct the bureau's priorities. The problem is the way the Trump administration has chosen to use the FBI: taking agents trained for complex investigations and having them stand around looking scary while ICE conducts immigration arrests. This overlap of the FBI and ICE not only wastes resources, but actively undermines the bureau's ability to investigate the very gangs that Patel and Bongino have said they want to tackle. Why, after all, would any Latin American immigrant agree to cooperate with the FBI on taking down MS-13 or Tren de Aragua, if reaching out to law enforcement might well get them deported? There is also the question of what leads won't be pursued because of this focus on immigration—and because the FBI's leadership has pushed out the experts who knew how to do such work in the first place. Feinberg, who speaks Mandarin, helped spearhead the FBI's investigation into the Chinese technology giant Huawei, which the U.S. accused of stealing trade secrets from American companies. Now that he's gone, he's not sure whether anyone working in counterintelligence at senior levels of the bureau knows Chinese. 'It's particularly concerning to me, as someone who dedicated his professional career to combating the Chinese Communist Party and all of its tentacles, to see resources and efforts diverted away from hostile foreign intelligence services and other serious threats to the homeland to focus on minor immigration status offenses,' Feinberg wrote in his recent essay. Earlier this month, Patel and Bongino found themselves tied up in the ever-widening Jeffrey Epstein scandal: Having hinted to the MAGA faithful at damning revelations only to come up empty-handed, they're now struggling to explain themselves. When I asked Feinberg about this, he sounded more exasperated than anything. 'They get a kick out of playing dress-up and acting tough,' he said. 'But they actually have no idea what they're doing.'

Wall Street Journal
10 minutes ago
- Wall Street Journal
Baseball's ‘Spot-Fixing' Investigation Now Includes a Star Closer
When former Toronto Raptors forward Jontay Porter was caught 16 months ago conspiring with bettors to fix his performance in NBA games, it was easy to believe it was an isolated incident. But the steady drip of revelations since then has shined a spotlight on a frightening reality for the entire industry of professional sports: No caliber of athlete, no matter how rich, famous or talented, is immune to the threat of gambling.