AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREBlues bury Kings early with four first-period goals Chi Mak, who is a U.S. citizen, allegedly passed the information to his brother, who then encrypted or helped encrypt the files and loaded them onto a computer disk, according to prosecutors. Tai Mak and his wife, Fuk Heung Li, were arrested Oct. 28 at Los Angeles International Airport as they prepared to travel to Hong Kong and Guangzhou, China. The disk was found hidden inside the cover of an English-language study guide that Tai Mak carried, authorities said. Sixty more deleted files – all encrypted – were later found on Tai Mak’s home laptop, which had a shared drive with computers at Power Paragon, authorities allege. Investigators also found a “key code” to decrypt the files in a white envelope in a drawer in Tai Mak’s bedside table. During the first hearing Monday, U.S. District Judge Cormac J. Carney overturned an earlier ruling by another judge to grant release on bond to Chi Mak. Carney said he recognized strong character evidence supporting the release of the engineer, but that the nature of the charge and alleged activities made it impossible to grant bond. He scheduled another hearing in two weeks to revisit the issue. “This is a unique charge,” Carney said. “I have to put that strong character evidence in the context of the charge. I don’t know whether he’s leading a double life or not. That’s for a jury to decide.” SANTA ANA – Two brothers charged with being unregistered agents for China were denied bail Monday by separate federal judges in lengthy hearings, one of which included detailed testimony from an FBI special agent and an FBI Mandarin-language expert involved in the case. The cross-examination of the lead investigators, however, did not reveal much additional information about the depth of the government’s case against U.S. defense technology engineer Chi Mak, 65, and his younger brother, Tai Wang Mak. Mak, his wife, Rebecca Laiwah Chiu, and his brother were indicted on a charge of being unregistered agents for China. All have pleaded not guilty; Chiu is free on $300,000 bond. Investigators allege that Chi Mak took computer disks from Anaheim-based defense contractor Power Paragon, where he worked on a sensitive research project involving propulsion systems for Navy warships, and took steps to send the information to China. Carney said defense arguments that prosecutors trumped up the case to raise alarm didn’t convince him that Chi Mak wasn’t a flight risk. “You’re talking about billions of dollars of technology that puts our country at serious risk. You are saying this is a big farce … but this is a pretty darn serious charge,” the judge said. At another hearing later Monday, U.S. District Judge Marc Goldman denied bail to Tai Mak after hearing from two FBI agents involved in building the case against the brothers. FBI Special Agent James Gaylord, who prepared an affidavit submitted last month that alleged the defendants committed crimes ranging from stealing government property to conspiracy, said Chi Mak’s home had been under surveillance since June 2004. He said Tai Mak’s home had been bugged since September or October 2004. Gaylord referenced several phone calls between Tai Mak, his son and his wife in which they allegedly discussed encrypting the files and made at least one reference to doing so on previous occasions. 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set!