U.S. Officers Cost Russian Citizen for Smuggling Twin-Use Expertise
On Monday, September 16, 2024, Denis Postovoy, a 44-year-old Russian citizen residing in Sarasota, Florida, was arrested in reference to an indictment alleging unlawful exports of U.S.-sourced microelectronics to Russia. These microelectronic parts have navy purposes, and their export was carried out with out the required licenses.
Costs and Allegations: Illegally Exporting Drone Expertise
The U.S. Division of Justice charged Postovoy with a number of counts, together with violating the Export Management Reform Act, smuggling, cash laundering, and defrauding the US. The indictment, which was introduced by U.S. Legal professional Matthew M. Graves and Assistant Legal professional Basic Matt Olsen of the Nationwide Safety Division, alleges that Postovoy started exporting these delicate parts in February 2022, following Russia’s full-scale invasion of Ukraine.
The parts exported by Postovoy had been supposed to be used in unmanned aerial autos (UAVs), generally generally known as drones. The indictment outlines that Postovoy, by means of his community of corporations in Russia, Hong Kong, and different places, bought the microelectronics from U.S.-based distributors and illegally shipped them to Russia with out acquiring the required licenses from the U.S. Division of Commerce.
In response to U.S. Legal professional Graves, “This defendant illegally exported dual-use technology to Russia that could bolster its capabilities to wage its unprovoked war against Ukraine. As alleged, he lied about the final destination for the technology he was shipping and used intermediary destinations to mask this illegal activity.”
Hid Actions and False Documentation
Postovoy is accused of utilizing a wide range of strategies to cover the true finish customers of the microelectronics. The indictment particulars how Postovoy operated corporations, together with WowCube HK Restricted, JST Group Hong Kong, and Jove HK Restricted, all based mostly in Hong Kong, and the Vector Group in Russia. He submitted false data on transport paperwork to obscure the ultimate locations of the products, which had been in the end shipped to Russia by means of middleman places like Hong Kong and Switzerland.
Funds for these shipments had been made in U.S. {dollars} from overseas financial institution accounts. Postovoy’s corporations then transferred the funds by means of accounts in Russia, Hong Kong, and different places earlier than making remaining funds to U.S. suppliers. These transactions had been dealt with by means of accounts maintained by the suppliers of microelectronics and different delicate applied sciences inside the US.
Particular Agent in Cost Ryan L. Spradlin of Homeland Safety Investigations (HSI) Denver emphasised the significance of uncovering Postovoy’s actions. “This defendant attempted to procure and illegally export dual-use microelectronics with military applications, and ultimately ship them back to Russia. Mr. Postovoy will now face justice for his duplicity.”
Investigation and Coordination
The investigation into Postovoy’s actions is being led by Homeland Safety Investigations in Colorado Springs. The U.S. Legal professional’s Workplace for the District of Columbia and the Nationwide Safety Division’s Counterintelligence and Export Management Part are prosecuting the case. Assistant U.S. Legal professional Stuart D. Allen and Trial Legal professional Sean R. Heiden are main the prosecution efforts.
This case falls below the broader scope of efforts coordinated by the Disruptive Expertise Strike Drive. The Strike Drive is an interagency legislation enforcement initiative that targets illicit actors looking for to amass essential expertise from the U.S. It’s co-led by the Departments of Justice and Commerce, with a concentrate on stopping expertise from being obtained by authoritarian regimes and hostile nation-states.
As acknowledged within the US Legal professional’s Workplace press launch, “An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.”
Postovoy now faces authorized proceedings as authorities proceed their efforts to fight unlawful exports of delicate expertise.
Learn extra:
Miriam McNabb is the Editor-in-Chief of DRONELIFE and CEO of JobForDrones, an expert drone providers market, and a fascinated observer of the rising drone business and the regulatory atmosphere for drones. Miriam has penned over 3,000 articles centered on the business drone area and is a world speaker and acknowledged determine within the business. Miriam has a level from the College of Chicago and over 20 years of expertise in excessive tech gross sales and advertising for brand new applied sciences.
For drone business consulting or writing, E-mail Miriam.
TWITTER:@spaldingbarker
Subscribe to DroneLife right here.