The U.S. this week unsealed two indictments charging multiple people in schemes to deliver export-controlled dual-use goods to Russia. In both cases, DOJ charged Russian nationals and others with using Brooklyn-based companies to buy goods on behalf of sanctioned end-users or others connected to Russia's military.
The U.S. filed a forfeiture complaint in the U.S. District Court for the Southern District of New York against a 348-foot superyacht allegedly owned by sanctioned Russian oligarch Suleiman Kerimov, DOJ announced Oct. 23. The vessel, worth more than $300 million, was seized in 2022 in Fiji following a U.S. request for mutual legal assistance. The yacht was "improved and maintained in violation of" sanctions on Kerimov and "those acting on his behalf," DOJ alleged.
Noel Quintana and Kelsy Hernandez Quintana, a Florida couple, pleaded guilty on Oct. 19 to conspiring to skirt customs duties on their plywood imports, DOJ announced. Noel also pleaded guilty to one count each of smuggling and violating the Lacey Act, while Kelsey also pleaded guilty to two counts of violating the Lacey Act. In all, the Quintanas' scheme allowed them to evade around $42 million in duties, DOJ said.
Frank Seung Noah, a California man working as a customs broker, was arrested on charges that he "defrauded clients out of $2 million" while free on bond from separate charges alleging he defrauded a different client out of $3.4 million, the U.S. Attorney's Office for the Central District of California announced. Noah, who was arrested Oct. 5, has been indicted on eight counts, pleading not guilty to each.
John Unsalan, president of U.S. building materials supplier Metalhouse, pleaded guilty last week in connection with violations of Russia-related sanctions. Unsalan allegedly breached sanctions against Russian oligarch Sergey Kurchenko and two of his companies by providing them with over $150 million for steel-making materials (see 2304180033). DOJ said Unsalan pleaded guilty to one count of conspiracy to commit money laundering to “promote violations” of the International Emergency Economic Powers Act, which carries a maximum 20-year prison sentence, and agreed to forfeit about $160 million in proceeds he obtained from the conspiracy. The U.S. dismissed the remaining counts of the indictment against Unsalan as part of a plea deal.
North Carolina-based specialty chemicals manufacturing company Albemarle Corp. agreed to pay over $218 million to settle DOJ and SEC investigations on alleged violations of the Foreign Corrupt Practices Act, DOJ announced. The violations resulted from Albemarle's payment of bribes to government officials in Vietnam, Indonesia and India.
Farhad Nafeiy, a California-based telecommunications consultant, pleaded guilty this week to violating the International Emergency Economic Powers Act after he breached the scope of sanctions licenses from the Office of Foreign Assets Control.
DOJ unsealed eight indictments in two Florida district courts on Oct. 3, charging a host of Chinese companies and their employees with illegally producing and distributing fentanyl and methamphetamine and their precursor chemicals. The indictments were accompanied by a move from the Treasury Department's Office of Foreign Assets Control to sanction 28 individuals and entities for the same reasons (see 2310030066).
New Jersey jewelry company 21st Millennium and two individuals "who own or control the business," Iqbal Virani and Aqib Virani, admitted to evading customs duties on gold jewelry imports, the U.S. Attorney's Office for the District of New Jersey announced. Per the terms of a settlement agreement, the company and the two owners also agreed to pay $1 million to the U.S. after admitting to evading over $400,000 in customs duties.
The U.S. unsealed an indictment this week against a Russian citizen and Hong Kong resident who helped illegally procure U.S. dual-use microelectronics with military applications for Russian end users. Maxim Marchenko used a network of shell companies to source the items from the U.S., DOJ said, giving false information to American distributors to assure them the products weren’t destined for Russia. Marchenko was charged with conspiring to defraud the U.S. along with money laundering, wire fraud and smuggling offenses.