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Accused spy stashed money in Swiss banks


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POSTED: Saturday, March 27, 2010

The man accused of selling secrets about the B-2 bomber to China hid the proceeds from the transactions by directing the payments to secret Swiss bank accounts of foundations he set up in Liechtenstein, the government said in recently filed court documents.

Noshir Gowadia, 66, a former engineer with defense contractor Northrup Corp., is facing charges that he sold classified B-2 bomber technology to the People's Republic of China, tried to sell the technology to Switzerland, Israel and Germany, money laundering and filing false tax returns.

Trial is scheduled to begin next month and expected to run into summer.

The government said it found evidence of the Swiss bank accounts when federal agents raided Gowadia's Maui home on Oct. 13, 2005. However, because of restrictive disclosure laws in Switzerland and Liechtenstein, the government said it did not receive the Swiss bank records until December 2008 and the Liechtenstein foundation records until last month.

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Gowadia worked for Northrup from 1968 to 1986, during which time he helped develop the B-2 bomber's unique propulsion system. After his employment with Northrup ended, Gowadia continued his relationship with the U.S. military as a private contractor.

However, following some angry dealings with the Air Force and the Los Alamos National Laboratory in 1993, Gowadia began to seek and solicit business internationally, the government says.

Between 2003 and 2005 Gowadia made six secret trips into mainland China and exchanged numerous communications to help Chinese defense engineers design a cruise missile that is able to evade air-to-air, heat-seeking missiles, according the federal indictment against him.

Gowadia also sent classified information to a Swiss government official in 2002 in a proposal to develop infrared reduction technology for a military helicopter, and sent classified information to foreign businessmen in Israel and Germany in proposals to develop the same kind of technology for commercial aircraft, the indictment says.