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Tuesday, November 5, 2024

Virginia firm charged with illegal tech exports to Russia

Attorneys & Judges
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Lisa O. Monaco Deputy Attorney General | Official Website

Eleview International Inc., along with two senior executives, Oleg Nayandin and Vitaliy Borisenko, appeared in the Eastern District of Virginia court. They face charges related to conspiracy under the Export Control Reform Act for allegedly exporting U.S. technology to Russia.

Assistant Attorney General Matthew G. Olsen stated, "As alleged, the defendants — a Virginia company and two of its senior executives — conspired through three evasion schemes to circumvent the export restrictions imposed on Russia following its invasion of Ukraine." He emphasized that compliance with laws protecting national security is mandatory for U.S. companies.

Assistant Secretary for Export Enforcement Matthew S. Axelrod highlighted that Eleview International Inc. used three different methods to transship sensitive American technology illegally to Russia. "Today’s charges, against both the company and two top executives, are a prime example of our work to bring to justice both the companies and the corporate executives alleged to have circumvented our rules in search of a fatter bottom line," Axelrod said.

U.S. Attorney Jessica D. Aber stressed the importance of preventing critical systems from being transferred unlawfully: “We must not allow critical systems and technologies to be transferred to anyone who may use them against America and our global partners.”

Special Agent Derek W. Gordon noted that these schemes concealed true recipients, posing risks: “Export control evasion schemes put the American public at risk by concealing the true recipient.” He added that Homeland Security Investigations uncovered this scheme in partnership with other agencies.

The complaint outlines activities between March 2022 and June 2023 involving Eleview International Inc., Nayandin, and Borisenko using an e-commerce platform for Russian customers to order U.S. goods shipped through countries near Russia despite stricter controls post-February 2022.

The defendants reportedly employed three specific evasion strategies involving Turkey, Finland, and Kazakhstan as intermediary countries for shipping goods ultimately destined for Russia.

In one scheme involving Turkey, telecommunications equipment worth $1.48 million was exported under false pretenses but intended for Russian entities like the Federal Security Service (FSB). Another scheme involved shipping $3.45 million worth of high-priority items via Finland labeled with Russian postal tracking numbers before reaching end users in Russia. The Kazakhstan scheme involved $1.47 million worth of dual-use items sent through a Kazakh entity facilitating deliveries into Russia.

If convicted, Nayandin and Borisenko could each face up to 20 years imprisonment upon sentencing by a federal district court judge based on guidelines and statutory factors.

Investigations are ongoing by BIS and Homeland Security Investigations while prosecution is handled by Assistant U.S Attorneys Gavin R Tisdale & Amanda St Cyr alongside Trial Attorney Garrett Coyle with past assistance from Raj Parekh.

This case falls under coordination between Justice & Commerce Departments’ Disruptive Technology Strike Force & Task Force KleptoCapture targeting illicit actors affecting supply chains amid international sanctions following Russia's actions in Ukraine.

A criminal complaint remains an allegation until proven guilty beyond reasonable doubt within legal proceedings.

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