Maxim Marchenko, 52, was sentenced today to three years in prison followed by three years of supervised release for his role in procuring dual-use, military-grade OLED micro-displays for Russian end users.
“Today’s sentence holds Mr. Marchenko accountable for his role in a procurement syndicate that funneled U.S.-manufactured military-grade microelectronics to end users in Russia, illegally delivering controlled technologies worth hundreds of thousands of dollars,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department remains relentlessly focused on dismantling illicit procurement networks led by individuals like the defendant, who use their business skills and connections to advance the Russian war agenda.”
“The transshipment of military-grade microelectronics through Hong Kong to Russia helps fuel the engine of Russia’s war machine,” said Assistant Secretary of Commerce Matthew S. Axelrod for Export Enforcement. “Today’s sentencing is just the latest example of our unceasing efforts to target and disrupt illegal Russian procurement networks.”
“This office will stop at nothing to hold accountable those who seek to circumvent our laws to gain access to some of our most sensitive technologies,” said U.S. Attorney Damian Williams for the Southern District of New York. “Today’s sentence should be a reminder that no number of shell companies or obfuscation will stop this office in its pursuit of those who seek to illicitly gain access to controlled technologies.”
“Marchenko and his co-conspirators operated an international smuggling network of sensitive microelectronics used in military gear and other weapons systems,” said Executive Assistant Director Robert Wells of the FBI National Security Branch. “Today’s sentencing demonstrates the FBI’s resolve in doing our part to protect national security and prevent American military technology from being diverted to foreign adversaries and hostile nation states.”
According to court documents, Marchenko is a Russian national who resides in Hong Kong and operates several Hong Kong-based shell companies, including Alice Components Co. Ltd., Neway Technologies Limited, and RG Solutions Limited. Marchenko and two co-conspirators, also Russian nationals, operate an illicit procurement network spanning Russia, Hong Kong, and other locations overseas. This network fraudulently obtained large quantities of dual-use OLED micro-displays from U.S. distributors on behalf of Russia-based end users.
To carry out this scheme, Marchenko and his associates used shell companies based in Hong Kong and other deceptive means to conceal from U.S. government agencies and distributors that these OLED micro-displays were destined for Russia. The procured technology has significant military applications such as rifle scopes, night vision goggles, thermal optics, and other weapon systems.
Marchenko's group acquired these displays from U.S.-based distributors by falsely representing that they were intended for use outside Russia—in places like China or Hong Kong—for electron microscopes or hunting rifles when they were actually meant for end users in Russia.
To further conceal their activities, Marchenko's group used pass-through entities principally operated by him in third countries like Hong Kong before shipping them ultimately to Russia using freight forwarders known for serving Russian destinations. They also masked payments originating from Russia through these shell companies.
Between May 2022 and August 2023, Marchenko's shell companies funneled over $1.6 million into the United States supporting this smuggling effort.
The case was investigated by the FBI along with the Commerce Department’s Bureau of Industry and Security and State Department’s Diplomatic Security Service with assistance from the Justice Department’s Office of International Affairs.
Assistant U.S. Attorneys Jennifer N. Ong and Shiva H. Logarajah prosecuted the case with support from Trial Attorney Garrett Coyle from the National Security Division's Counterintelligence and Export Control Section.
Today's actions were coordinated through Task Force KleptoCapture—a multi-agency task force dedicated to enforcing sanctions against Russia—and Disruptive Technology Strike Force aimed at preventing critical technology acquisition by authoritarian regimes.
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