The illegal export scheme of semiconductors, integrated circuits, and other electronic components for the Russian military industry was exposed in New York.
The press service of the U.S. Department of Justice reported that a resident of Brooklyn, as well as two citizens of Russia and Canada, organized the plot.
A criminal case was made public in Brooklyn charging Nikolay Goltsev, Salimdzhon Nasriddinov, and Kristina Puzyreva with conspiracy and other charges related to a global procurement scheme on behalf of sanctioned Russian organizations, in particular companies associated with the Russian military.
Some of the electronic components and integrated circuits supplied by the defendants were discovered in Russian weapon platforms and signal intelligence equipment seized in Ukraine.
Nasriddinov, who lives in Brooklyn and holds dual Russian and Tajikistan citizenship, was arrested in Brooklyn. Goltsev and Puzyreva were arrested at a Manhattan hotel during a trip to New York to visit Nasriddinov.
Law enforcement officials announced the charges.
According to the investigation, the criminal organization evaded American sanctions and laws for a year, managing to send over 300 shipments of restricted items worth about $10 million to the Russian battlefield.
“As alleged, the defendants evaded sanctions, shipping equipment to Russia that is vital for their precision-guided weapons systems, some of which has been used on the battlefield in Ukraine,” U.S. Attorney Peace stated.
Plot
The defendants used two legal entities registered in Brooklyn, SH Brothers Inc., and SN Electronics Inc., to implement the scheme.
These organizations illegally located, procured, and supplied millions of dollars worth of dual-use electronics from American manufacturers to sanctioned end users in Russia.
Many of the electronic components and integrated circuits supplied by the defendants through SH Brothers, according to the Department of Commerce, “were of greatest concern due to their critical role in the production of modern Russian precision-guided weapons systems, Russia’s lack of domestic production, and the limited global manufacturers available”.
According to the statement of claim and other court documents, some electronic components and integrated circuits with the same make, model, and article supplied by the defendants through SH Brothers were discovered in captured Russian weapons platforms and signals intelligence assets in Ukraine.
Specifically in:
- Torn-MDM radio reconnaissance system,
- RB-301B “Borisoglebsk-2” electronic warfare system,
- Izdeliye 305E light multi-purpose guided missile,
- Vitebsk L370 airborne counter missile system,
- Ka-52 helicopters,
- Orlan-10 unmanned aerial vehicles (UAVs),
- T-72B3 battle tanks.
During the period indicated in the complaint, SH Brothers made hundreds of deliveries to Russia in the amount of over $7 million through this scheme.
Orders
Goltsev received orders from Russian end users in the defense and technology sectors who sought to purchase certain products or parts in the United States.
Goltsev then contacted American manufacturers and distributors directly, usually using aliases such as “Nick Stevens” or “Gio Ross.”
Nasriddinov and Goltsev purchased electronic components from American manufacturers and distributors under the auspices of SH Brothers and SN Electronics and organized their delivery to various places in Brooklyn.
Nasriddinov and Goltsev then illegally transported items to various intermediary companies located in other countries, including Turkey, Hong Kong, India, China, and the United Arab Emirates, from where they were redirected to Russia.
Puzyreva managed numerous bank accounts and conducted financial transactions under this plot.
It is noted that the defendants knew that the exported electronics had potential military use.
“The Justice Department is committed to imposing accountability and exposing tactics used by hostile nation-states to illicitly acquire items they need to perpetuate their brutal campaigns,” Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division stated.
This case once again demonstrates Russia’s willingness to ignore U.S. laws by using illegal procurement networks to secure its armed forces.
“FBI New York and our partners will hold anyone attempting to procure sanctioned equipment accountable in the criminal justice system in order to protect our national security,” James Smith, Assistant Director-in-Charge, FBI, said.