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$1 Million Fine, Prison Sentence for Illegal Exports and Money Laundering

Friday, November 16, 2018
Sandler, Travis & Rosenberg Trade Report

The Department of Justice reports that a California resident has been assessed a $1 million fine and forfeiture of $222,929.61 for conspiring to illegally export defense items to Russia and laundering the proceeds. The man was also sentenced to 108 months in prison and three years of supervised release.

According to a DOJ press release, over a four-year period the man conspired with his spouse to export to a company in Russia numerous night and thermal vision components, including image intensifier tubes and lenses. The couple used their U.S. business to purchase these components and misrepresented to the sellers that the products would not be exported. They then shipped the products to Russia using a variety of front companies and shipment methods. DOJ states that the defendants knew these components were on the U.S. Munitions List and that they therefore were not permitted to export them without a license from the State Department’s Directorate of Defense Trade Controls, which they never sought.

The man was also found to have taken steps to conceal these crimes and laundered the proceeds, the press release states, using numerous front companies and the identity of at least one deceased person.

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