US Charges Massachusetts Man With Shipping Laser Welding Machines to Russia
The U.S. on Sept. 5 unsealed an indictment against Sam Bhambhani, a North Attleboro, Massachusetts, resident and salesman for an unnamed laser source supplier, for allegedly conspiring to violate U.S. export controls and smuggling goods from the U.S. by sending laser welding machines to Russia. Also named in the indictment was Maxim Teslenko, a Russian citizen, who "acted as a reseller of laser equipment to the Russian government."
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The U.S. Attorney's Office for the District of Massachusetts alleged that starting in 2015, Bhambhani's company exported welding machines from Rhode Island to Russia, listing the "ultimate consignee" as Russian firm Polyarisy on the export documents, when the goods were meant for the Ural Electromechanical Plant -- a subsidiary of sanctioned Russian state nuclear energy firm Rosatom.
In April 2015, an unnamed employee of Ural Electromechanical Plant emailed Bhambhani's company seeking the identity of its Russian reseller. Bhambhani replied, identifying Teslenko as the reseller. Teslenko then told Bhambhani that the Ural Electromechanical Plant had been the "customer for the laser welding machines previously shipped in February 2015." In November 2015, Teslenko told Bhambhani that his customers were "government customers," asking for at least six machines for the buyers, the indictment alleged.
As a result, around July 2016, Bhambhani's company shipped six laser welding machines from the U.S. A March 2017 document allegedly shows that the Ural Electromechanical Plant contracted to take over ownership of six laser workstations. Two days later, Bhambhani's company allegedly shipped six laser welding machines, listing a Latvian company as the recipient. In 2020, more laser welding machines were shipped, and the shipments listed a firm in the British Virgin Islands as the "ultimate consignee," the U.S. alleged.
In March and April 2020, Teslenko and Bhambhani discussed buying two more laser welding machines. Bhambhani noted the export controls in place on the goods. He said the duo would have to "figure out the shipment and invoicing as now there are too many controls put on export to Russia. Politics!"
Bhambhani asked Teslenko if he had other companies in Europe, the U.S. or Canada that can be used for the orders. Teslenko suggested Estonian firm Torvard. In 2021, Bhambhani had his company indicate to a freight forwarder that the ultimate consignee for a laser welding machine was Torvard.
In all, the U.S. charged Bhambhani and Teslenko with two counts: conspiracy to violate and evade export controls, commit smuggling and defraud the U.S., and smuggling goods from the U.S.
Reuters was first to report on the indictment.