Parthasarathy Sudarshan, 46, CEO of Cirrus Electronics, was arraigned before a US magistrate judge on charges of smuggling technology linked to development of aircraft, missile and aerospace systems, government attorneys said.

He and his company's international sales manager, Mythili Gopal, 36, were arrested on March 23 following joint investigations by the FBI and commerce, customs and immigration agencies. Gopal is to be officially charged on April 17.

Facing a 15-count indictment, they were charged with acting as "illegal agents of a foreign government" and violating the International Emergency Economic Powers Act and the Arms Export Control Act.

The indictment also charged other Cirrus employees AKN Prasad of Bangalore, India, and Sampath Sundar, 47, of Singapore, for their roles in the alleged offenses.

"These arrests put a network of technology smugglers out of business and demonstrate that we have no tolerance for weapons proliferators who illegally supply entities with weapons technology," said Assistant Attorney General Wainstein.

According to the indictment, Sudarshan and Gopal had acquired electrical components that could have applications in missile guidance and firing systems for Indian state enterprises Vikram Sarabhai Space Center (VSSC) and Bharat Dynamics, Ltd. (BDL).

VSSC is an Indian Department of Space agency and produces space launch vehicles in activities that encompassed both civilian spacecraft and ballistic missiles, while BDL, an Indian Defense Ministry enterprise, is the prime production agency for missile weaponry systems.

The defendants purportedly also acquired US microprocessors for the Tejas, a fighter jet being developed by India's Aeronautical Development Establishment.

Washington restricts such exports to the three Indian government agencies.

"Networks that procure US technology whose export is restricted to combat proliferation and then seek to evade US export and licensing regulations undermine our national security," said Jeffrey Taylor, US Attorney for the District of Columbia.

Cirrus allegedly routed the products through its Singapore office and then sent the packages on to India.

"This case clearly demonstrates that the United States will aggressively investigate and prosecute those who illegally procure and export components for space launch vehicle and ballistic missile programs," said Darryl Jackson, Assistant Secretary for Export Enforcement at the US Commerce Department.

"Even when they attempt to mask their illegal activities by diverting sensitive components through third countries," he added.

If convicted of the charges, Sudarshan could face up to 10 years in prison, while Gopal up to six years and Prasad and Sundar up to eight years.

Indian government officials were linked to the alleged scam, according to the indictment. Reports quoting the FBI said one of them was an official posted at the Indian embassy in the United States.

An official in US President George W. Bush's administration said the case could undermine Congressional support for nuclear and space cooperation with India, the Washington Times reported Tuesday.

But State Department spokesman Sean McCormack said although the case was a "serious matter," he did not see "any connection" with a landmark bilateral civilian nuclear agreement that Bush signed into law in December.

Under the agreement, which is still being discussed for final US Congress approval, the United States would provide nuclear technology and fuel to India.

American officials have often cited India's "clean" non-proliferation record to market the pact among legislators.

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Cirrus Electronics
The Military Industrial Complex at SpaceWar.com