Pakistani Nat'l Sentenced to 37 Months for Illegal Exports to Restricted Entities
The Justice Department has announced that Nadeem Akhtar, a Pakistani national and lawful permanent resident of the U.S., was sentenced to 37 months in prison, followed by two years of supervised release for conspiring to commit export violations and to defraud the U.S. in connection with a scheme to illegally export nuclear-related materials.
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Used U.S. Company to Obtain Items for Export to Restricted Entities in Pakistan
According to his plea agreement, Akhtar owns Computer Communication USA (CC-USA). From October 2005 through March 11, 2010, Akhtar and his conspirators used CC-USA to obtain or attempt to obtain radiation detection devices, resins for coolant water purification, calibration and switching equipment, attenuators and surface refinishing abrasives for export to restricted entities in Pakistan. Due to their use in both commercial and military applications, a license would be required to export these items to an end-user of concern or if exported in support of a prohibited end-use, such as activities related to related to nuclear explosives, nuclear reactors, or the processing and production of nuclear-related materials.
Other items Akhtar unlawfully procured or exported, or attempted to procure or export, to restricted entities in Pakistan include mechanical and electrical valves, cranes and scissor lifts. The total worth of all of these items exceeded $400,000.
Restricted Entities Were Acting Contrary to U.S. Nat'l Security Interests
The restricted entities in Pakistan included organizations of concern to the U.S. government as acting contrary to the national security or foreign policy interests of the U.S. These restricted entities included: Pakistan’s Space and Upper Atmosphere Research Commission; and the Pakistan Atomic Energy Commission (PAEC) and its subordinate entities, such as the Chasma Nuclear Power Plant I in Kundian, Pakistan and the research reactor maintained by the Pakistan Institute of Engineering and Applied Sciences, a constituent institution of the PAEC in Nilhore, Pakistan, specializing in nuclear-related research and development. Exports of commodities to these organizations were prohibited absent the issuance of an export license.
Undervalued Items, Hid True End-User, Transshipped Items, Etc. to Evade Regs
Akhtar attempted to evade export regulations and licensing requirements by: undervaluing and falsely describing the items being exported; failing to reveal the true end-user by using third parties and/or real and fake business entities/locations in Pakistan, Dubai and the U.S.; using individuals in Illinois and California to procure items for him under false pretenses; shipping items to his residences in Maryland so it would appear as though his company was the actual purchaser/end-user of the items; and trans-shipping the items from the U.S. through the UAE.
Pakistani Nat'l Took Direction from Trading Co in Pakistan, Had Co-Conspirators
Akhtar took direction from the owner of a trading company located in Karachi, Pakistan, who had business relationships with governmental entities in Pakistan. This individual would obtain orders for nuclear-related and other commodities from Pakistani government entities, and then direct Akhtar as to what commodities to purchase in the U.S. for export to Pakistan, and the methods to be used to conceal the true nature, value and end-user of the items. Akhtar would then negotiate prices with manufacturers and suppliers of commodities sought in the U.S. and arrange for shipment of the commodities.
Akhtar’s co-conspirators included individuals in Pakistan, Dubai, UAE and New York associated with the owner of the Pakistani trading company. The owner usually paid Akhtar a commission of five to seven and a half percent of the cost of each item Akhtar obtained for export from the U.S.
(See ITT's Online Archives 11091304 and 11031515 for summaries of Akhtar's guilty plea and indictment.)