The Department of Justice reports that a father and son have been sentenced to 18 months’ imprisonment, followed by three years of supervised release, for profiting from unlawful exports to Pakistan. Each had pleaded guilty to one count of international money laundering for causing funds to be transferred from Pakistan to the U.S. in connection with the export control violations.
A DOJ press release states that from at least 2012 to October 2013 these two individuals were engaged in a scheme to purchase goods controlled under the Export Administration Regulations and export them to Pakistan without a license in violation of the EAR. Through several companies the defendants received orders from a Pakistani company that procured materials and equipment for the Pakistani military asking them to procure specific products subject to the EAR. When U.S. manufacturers asked about the end-user for a product the defendants either replied that the product would remain in the U.S. or completed an end-user certification indicating that the product would not be exported.
After the products were purchased they were shipped by the manufacturer to the defendants in the U.S. and then shipped to Pakistan on behalf of the Pakistan Atomic Energy Commission, the Pakistan Space & Upper Atmosphere Research Commission, or the National Institute of Lasers & Optronics, all of which were on the Entity List. The defendants never obtained a license to export any item to these entities even though they knew a license was required.
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