The Justice Department announced today that Pen Yu, also known as Ben Yu, 51, of Gibsonton, Florida, and Gregory Muñoz, 45, of Minneola, Florida, have each pleaded guilty to one count of wire fraud conspiracy. The charges stem from their involvement in a scheme to fraudulently procure deeply discounted products from Massachusetts biochemical company Sigma-Aldrich Inc., doing business as MilliporeSigma, and export them to China using falsified export documents.
Additionally, the Justice Department has declined the prosecution of MilliporeSigma after considering factors outlined in the Department’s Principles of Federal Prosecution of Business Organizations and the National Security Division Enforcement Policy for Business Organizations (NSD Enforcement Policy). This policy presumes that companies which voluntarily self-disclose potential criminal violations related to export control or sanctions laws, fully cooperate with authorities, and timely remediate will generally receive a non-prosecution agreement unless aggravating factors are present. This marks the first instance where NSD has declined prosecution under this policy.
“When a business uncovers criminal wrongdoing within its ranks, the company is far better off reporting the violation than waiting for the Justice Department to discover it,” said Deputy Attorney General Lisa Monaco. “That’s exactly what MilliporeSigma did in the first-ever corporate declination under our National Security Division’s voluntary self-disclosure program. Because of MilliporeSigma’s timely disclosure and exceptional cooperation, a rogue company insider and his accomplice pled guilty to fraudulently diverting millions of dollars worth of biochemicals to China.”
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division added: “When MilliporeSigma found evidence that one of its employees was diverting biochemical products to an unauthorized purchaser in China, they did not sweep the misconduct under the rug. Instead, the company made an early decision to cooperate with the Justice Department.”
U.S. Attorney Roger B. Handberg for the Middle District of Florida commented on accountability: “When company and university insiders abuse the trust that their institutions place in them, they will be held accountable.”
Assistant Secretary for Export Enforcement Matthew S. Axelrod highlighted concerns about academic misuse: “Faking an affiliation with an academic research lab to obtain controlled biochemical materials...is not only wrong but illegal.”
Court documents reveal that starting from at least July 2016 through May 2023, Yu ordered biochemical products from MilliporeSigma by falsely claiming affiliation with a biology research lab at a large Florida university. This led MilliporeSigma to provide over $4.9 million worth of discounts and benefits unavailable to others. Muñoz facilitated these orders in exchange for thousands of dollars in gift cards from Yu.
Upon receiving products at a university stockroom intended for research purposes, they were diverted by a stockroom employee who sent them to Yu. He then repackaged these items and shipped them to China while falsifying export documents regarding their value and contents.
The scheme unraveled when MilliporeSigma compliance personnel flagged suspicious orders leading them to retain outside counsel who disclosed this misconduct promptly—within a week—to DOJ's National Security Division before completing their internal investigation.
MilliporeSigma's proactive cooperation included identifying relevant documents aiding law enforcement investigations resulting in probable cause searches leading up-to-the-minute felony guilty pleas from both Yu & Muñoz without any charges pressed against cooperating firm despite internal wrongdoing by Muñoz himself being employed thereon initially uncovered alongside other pertinent details surrounding case developments involving Defense Criminal Investigative Service; Commerce Dept Bureau Industry/Security Homeland Sec Investigations units working together jointly prosecuting cases handled via Assistant US Attorney Daniel J Marcet (Middle Dist FL) Trial Atty Garrett Coyle Counterintelligence/Export Control Section NSD respectively overseeing procedural matters therein ongoing inquiries overall pertaining thereto...