Background

The Department of Justice reports that a dual U.S. and Russian national has been sentenced to 30 months in prison for his role in a transnational arms dealing and money laundering network that sought to acquire ammunition and sensitive dual-use electronics for Russian military and intelligence services. He was also ordered to pay a forfeiture money judgment of $75,547. The man pleaded guilty last year to conspiracy to violate the Export Control Reform Act, bank fraud conspiracy, and conspiracy to defraud the U.S.

According to the DOJ, the man was affiliated with two Moscow-based procurement companies that “operated a vast network of shell companies and bank accounts throughout the world, including in the United States, that were used in furtherance of the scheme to conceal the involvement of the Russian government and the true Russian end users of U.S.-origin equipment.” Along with his co-conspirators he unlawfully purchased and exported highly-sensitive, export-controlled electronic components, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing, and other military applications.

DOJ adds that to carry out this scheme the man helped set up numerous shell companies and bank accounts in the U.S. to illicitly move money and export-controlled goods.

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