DOJ's criminal division has identified trade fraud as a top priority, assigning its market integrity and major frauds unit to handle tariff evasion cases, a DOJ official confirmed to us. The official said that the major frauds unit is shifting resources to trade and looking to cases involving "long-running frauds, senior executives, and large volumes of alleged losses from unlawful tariff evasion schemes."
An Iranian national and U.S. resident was arrested for allegedly exporting electronics used in railway signaling and telecommunications systems in violation of the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations, DOJ announced last week. Bahram Ostovari is charged with one count of conspiring to violate the IEEPA and three counts of violating the IEEPA, facing a maximum prison sentence of 20 years for each count.
Kyrgyz national Sergei Zharnovnikov pleaded guilty June 25 to conspiracy to illegally export firearms and ammunition to Russia, the U.S. Attorney's Office for the Eastern Dstrict of New York announced. He faces a maximum of 20 years in prison.
A Spanish national living in the United Arab Emirates pleaded guilty on June 17 in the U.S. District Court for the District of Columbia to conspiring to illegally export U.S.-origin radio communications technology to Russian end users without a license, DOJ announced. Sentencing is set for Sept. 30.
A Venezuelan national and a U.S. citizen were arrested on June 13 and charged with violating U.S. sanctions on Venezuela by selling "chemical catalysts, industrial equipment, and associated services" to sanctioned Venezuelan state-owned steel mills and petrochemical companies, DOJ announced. The Venezuelan national, Juan Carlos Cairo-Padron, and the U.S. citizen, Thomas Fortinberry, both face a maximum of 20 years in prison for sanctions and money laundering counts and 10 years in prison for smuggling.
A Texas-based industrial equipment supplier and its former CEO were fined millions of dollars for intentionally violating sanctions and export control laws, but the U.S. declined to prosecute its parent company after the firm voluntarily disclosed the violations and cooperated closely with DOJ’s investigation.
DOJ announced last week that it opened a civil forfeiture action in the U.S. District Court for the District of Columbia against more than $7.74 million allegedly laundered on behalf of the North Korean government. The funds were initially "restrained" as part of an indictment against North Korean banker Sim Hyon Sop, who was allegedly conspiring with North Korean information technology workers who illegally "amassed millions in cryptocurrency" as a means of evading sanctions on North Korea, DOJ said.
A Russian citizen was charged with using his cryptocurrency company Evita to violate U.S. sanctions by funneling over $500 million in overseas payments through U.S. banks and cryptocurrency exchanges, according to a 22-count indictment unsealed by DOJ on June 9. Iurii Gugnin, a resident of New York and a Russian citizen, was charged with wire and bank fraud, conspiracy to defraud the U.S. and violating the International Emergency Economic Powers Act, among other charges.
A Pakistani national was convicted last week of smuggling "Iranian-made advanced conventional weaponry" meant for the Houthis in Yemen, DOJ announced. Muhammad Pahlawan will be sentenced on Sept. 22 and faces a maximum of 20 years in prison.
A Chinese national pleaded guilty on June 9 to illegally exporting firearms, ammunition and "other military items" to North Korea by hiding them inside shipping containers leaving a California port, DOJ announced. Shenghua Wen admitted to one count of conspiracy to violate the International Emergency Economic Powers Act and one count of acting as an illegal agent of a foreign government.