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Ten-Year Prison Sentence for Illegally Exports of Controlled Technology to Russia

Monday, July 25, 2016
Sandler, Travis & Rosenberg Trade Report

The Department of Justice announced July 21 that a dual citizen of the U.S. and Russia has been sentenced to 10 years in prison and ordered to forfeit more than $500,000 in criminal proceeds after pleading guilty to a 19-count indictment associated with exports of high-technology products to entities affiliated with the Russian military.

The man was charged with acting as an unregistered agent of the Russian government within the U.S., illegally exporting controlled goods to Russia, conspiring to launder money and obstruction of justice. DOJ states that between approximately October 2008 and October 2012 he led a conspiracy to obtain advanced microelectronics from manufacturers and suppliers in the U.S. and export those goods to Russia while evading the government licensing system set up to control such exports. This was done by providing false end-user information in connection with the purchase of the goods, concealing the fact that the companies the man owned were exporters and falsely classifying the goods on export records submitted to the Department of Commerce.

DOJ states that the commodities at issue are frequently used in a wide range of military systems, including radar and surveillance systems, missile guidance systems and detonation triggers, and that many of them are not produced within Russia. The ultimate recipients of the shipments at issue included a research unit for the Russian internal security agency, a Russian entity that builds air and missile defense systems and another that produces electronic warfare systems for the Russian Ministry of Defense.

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