Counterintelligence and Chinese wave of spies

INTL 408 B001 SPR 15 Professor John Dolan June 29, 2015

Introduction China has set a goal for itself to become a global power; having full dominance in the Pacific region. (Secretary’s International Security Advisory Board ISAB) It wants to dominate the region and the United States with its economy growth, military domination, and technological advancement. To achieve their strategic goal, Chinese leadership is trying to modernize every aspect of their economy and military. On the economic arena this means accelerated growth through technological development. (ISAB) On the military side, it means modernizing its military from a manpower-based land army to a technology advanced and proficient army on a world scale. (ISAB) In order to achieve this level of modernization and growth, China uses every effort and means possible. That means buying new technologies from the West, but it also means using espionage to acquire secret corporate and military intelligence. China utilizes its intelligence security services in these efforts, but also has called upon Chinese immigrants/expats with ties to Chinese heritage that hold key access at important industries such as naval and aviation. This creates an insider threat for United States’ security. Secret data on U.S. military technology is being stolen by a long-term Chinese insider threat that is being addressed by US counter intelligence operations. This paper will discuss one case of an American Chinese insider threat that was exposed and possibly saved American military servicemen’s lives. This paper will look and examine the case of Chi Mak and how CI agents conducted their operation. Factual Background information
Chi Mak was a senior engineer for Power Paragon, Inc., a defense contractor in Anaheim, California, that designs and manufactures electrical systems for U.S. Navy combat ships and submarines. (United States v. Mak 2012, 7377) On October 28, 2005, Chi Mak’s brother and his sister-in-law were arrested by the Federal Agents at the Los Angeles International Airport prior to boarding a flight to China. (United States v. Mak 2012, 7377) When they were arrested, the Federal Agents found an encrypted CD with classified files was in their baggage, which was given to them by Chi Mak. It contained export-controlled naval technology, including documents regarding the Quiet Electric Drive project; a project intended to decrease the signature noise data emitted by U.S. Navy submarines and warships. (United States v. Mak 2012, 7377) The encrypted CD also contained information regarding the operations of solid-state power switches. (United States v. Mak 2012, 7377) The U.S. Navy utilizes both of these technologies. Chi Mak was also arrested. After the arrest, FBI agents conducted a detailed search of his home where they discovered numerous other documents containing protected military technology currently used by US military forces. (United States v. Mak 2012, 7377) Mak was indicted and ultimately charged with five counts: one count of conspiracy to violate the AECA, two counts of attempting to violate the AECA, one count of operating as an agent of a foreign government in the United States, and one count of lying to a federal agent. (United States v. Mak 2012, 7381) On May 7, 2007, a jury found Mak guilty on all counts and was sentenced to 293 months in federal prison (United States v. Mak 2012, 7381) Others convicted in the Mak’s ring included his brother, their wives, and Chi Mak’s son. They served time in federal prison and then were deported to China. Another engineer, Greg Chung, was also arrested and was sentenced to 15 years in custody.

Assessing the threat
Chi Mak’s involvement as a long-term intelligence officer for the Chinese military began in the 1970’s when Mak was monitoring the movement of U.S. Navy ships entering and leaving the Hong Kong harbor during the Vietnam War. (Bhattacharjee, 2014)
At the time of his arrest, he had worked for more than 20 years in the U.S. defense industry and brought very little concern to his employers. (Roche 2008, 2) He was a naturalized citizen of the United States and had worked to obtain high levels of access to information, gaining access to highly sensitive military technology. (Roche 2008, 2) He became a high-level insider security threat providing the People’s Republic of China with highly technical military technology. He was involved in running a spy network assisting another engineer in conducting espionage that provided PRC with thousands of pages of manuals regarding space, aviation, and the latest naval technology. The technological information Chi Mak provided to the PRC contained details on U.S. ships and submarines’ critical gaps and vulnerabilities as well as information on maneuverability that China could exploit thus putting thousands of US military personnel at risk. Those manuals also provide information on offensive weapons and technology that PRC could reversely engineer, thus gaining more powerful and lethal military weapons. In Roche’s words, “Those national security secrets in some future time would enable the People’s Liberation Army to more effectively kill Americans.” (pg1)
Indicators
Chi Mak and his spy ring were brought to the FBI’s attention by an unknown source that reported possible conduct of espionage. Chi Mak and Greg Chung both displayed outstanding models at work and their interest in engineering. They spent their adult lives in America working for the same companies, thus becoming “fixtures.” (Roche 2008, 1) That was an advantage for Chi Mak as a long-term mole for the PRC. (Roche 2008, 1) However, neither Mak nor Chung had assimilated into American life outside their jobs. Both were indicators of being a inside threat and should have raised flags of espionage to their employers. Another indicator of suspicion was their frequent travel to China and frequent correspondence with Chinese colleagues such as Chen QiNan. Such correspondence provided opportunities for technological exchanges. (Bhattacharjee 2014) Another indicator of a high-level threat was that they continually mentioned and talked about Chinese government and policies in social settings. Chi Mak often made remarks about Mao and his influence and how his views were misunderstood. (Bhattacharjee 2014) Lastly, both Mak and Chung conducted research outside their specific specialty rather than follow their task list. Chi Mak was ordered by PRC handlers to collect information on a variety of technologies such as: torpedo design, aircraft carrier electronics, and a space-launched magnetic levitational platform. (Roche 2008, 13) In order to collect that information Mak and Chung had to work odd hours, or would stay late after work in order to gain access to classified information outside of their scope. All such indicators are consistent with a high level of inside threat espionage and provided a framework that such individuals must be more thoroughly screened. Operation details After the FBI received a tip regarding Chi Mak, agents collected his trash and analyzed it for any documents that were related to passing classified materials to PRC and any dealings with Chinese agents. (Roche 2008, 2) FBI agents also positioned constant surveillance of his house, both visually and electronically, with cameras monitoring his computer room. Audio listening devices were placed in his phones, house, and his car. (Bhattacharjee 2014) Also, the FBI team made surreptitious entrees into his house to collect evidence of his activities. (Roche 2008, 3) Such FBI tactics are common practice in counter-espionage investigations to conduct those types of clandestine entrees into a suspect’s house to conduct searches while leaving no visible evidence that an entrée was made. (Roche 2008, 7) During these searches several technical manuals were found. Agents also discovered information regarding contacts with other members of the Mak spy ring such as Chung and connections to Chinese government officials who had provided task lists and instructions on how to send secret information. Those finds lead FBI to conduct the same actions on Chung’s and Mak’s brothers house. These searches led to greater finds of military espionage and connections to PRC intelligence services. Those finds contained thousands of documents, including many design manuals related to U.S. military aircraft such as the B-1 bomber, the C-17 military cargo plane, the F-15 fighter jet, and the Chinook 47 and 48 helicopters. (Bhattacharjee 2014) In the words of one of the FBI agents “It was like walking into King Solomon’s mine.” (Bhattacharjee 2014) The role counterintelligence agents played The main role of counterintelligence agents in this case was to utilized and focus resources in order to collect enough evidence to prosecute spies conducting espionage. In this case the lead counterintelligence agent was agent Gaylord. Gaylord put his surveillance team on Chi Mak, following his every move as well as monitoring his communications. Gaylord conducted physical surveillance in order to obtain Mak’s pattern of life in the area surrounding the house where he lived. (Bhattacharjee 2014) While establishing Mak’s pattern of life, Gaylord also collected Mak’s garbage, in which his colleagues found shredded task lists for a future U.S. destroyer that was written in Mandarin. (Bhattacharjee 2014) Then agent Gaylord directed his team to surreptitiously enter Mak’s house where they discovered classified documents and contacts of other Chinese engineers that lived in California. (Bhattacharjee 2014) Agent Gaylord subsequently investigated other contacts related to Chi Mak, thus exposing the entire espionage ring. Results and assessment of the operation’s success This counter-intelligence operation was a great success and key to the security of U.S. military technology. Chi Mak was convicted and sentenced to 24 years in federal prison. Chung was convicted and sentenced to 14 years. (Bhattacharjee 2014) Mak’s brother was convicted as well as their wives, and was deported to China. The assessment of the damage regarding how much technical information has transferred to the PRC military industry and how much can of it the Chinese can use is unknown. However, disabling Mak’s spy ring has protected many classified secrets. The end result is that in case of military conflict between U.S. and China, U.S. military servicemen’s lives are less in danger due to the successful operation of FBI’s counterintelligence team. (Bhattacharjee 2014)

Bibliography

Bhattacharjee, Yudhijit. "How the F.B.I. Cracked a Chinese Spy Ring - The New Yorker." The New Yorker. May 12, 2014. Accessed June 30, 2015. Bhattacharjee, Yudhijit. "A New Kind of Spy - The New Yorker." The New Yorker. Accessed June 30, 2015.

"China's Strategic Modernization; International Security Advisory Board." Accessed June 30, 2015. Roche, Edward. "Surveillance." In Snake Fish: The Chi Mak Spy Ring, 2-7. New York: Barraclough, 2008. "United States v. Mak." UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT. June 12, 2012. Accessed June 30, 2015.