Three people were arrested this week for their alleged involvement in a scheme to sell U.S. military secrets to China and to secretly bring Chinese goods into the U.S. defense supply chain.
Phil Pascoe, Monica Pascoe, Scott Tubbs, and Quadrant Magnetics LLC were charged with wire fraud, violations of the Arms Export Control Act, and smuggling of goods, according to a Nov. 9 statement by the Justice Department.
It is alleged that the three individuals used the company to conduct an illegal scheme to send export-controlled, defense-related technical data to China and to illegally supply the Pentagon with products from China, including rare earth magnets for aviation systems and military items….