WOODINVILLE, WA – A local printed circuit board fabricator contracted by the US Navy pleaded guilty Tuesday to wire fraud and violating the Arms Export Control Act.

Precision Image and company owner Chih-Kwang Hwa admitted to illegally sending restricted US Navy technical information to a Taiwanese circuit board manufacturer that was illegally subcontracted to make the PCBs for the Navy.

Under the terms of the contract, the boards were required to be made in the US.

According to court records, between 2009 and 2011, Hwa obtained contracts worth more than $180,000 to supply circuit boards to the Navy. The Navy supplied technical data to Precision Image that contained technical specifications for the circuit boards. This data was listed on the US Munitions List, International Traffic in Arms Regulations; as a result, the information could not be transmitted outside the US without a license from the State Department.

Prosecutors say Hwa knew about this restriction and didn’t get the appropriate licenses.

Under the terms of the plea agreement, prosecutors are recommending the company pay a $300,000 fine and Hwa serve a sentence of 15 to 21 months in prison. Maximum penalties include a $1 million fine and up to 20 years in prison.

Sentencing is set for Oct. 28.