Five People, Three Companies Charged in International Scheme to Violate ECRA, IEEPA
Two Russian nationals, two Italian nationals, a U.S. citizen and three companies were charged in a conspiracy to evade international trade sanctions, including violations of the International Emergency Economic Powers Act and the Export Control Reform Act, the Justice Department said in a Dec. 3 press release. The conspiracy involved an attempted $17.3 million purchase of a Vectra 40G power turbine and attempts at wire fraud and money laundering, the Justice Department said.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The trade violations involved a scheme orchestrated by Russian national Oleg Vladislavovich Nikitin, his company KS Engineering (KSE) and KSE employee Anton Cheremukhin. Also involved were Italian national Gabriele Villone, his company GVA International Oil and Gas Services and employee Bruno Caparini. U.S. citizen Dali Bagrou and his company World Mining and Oil Supply (WMO) were charged with wire fraud and money laundering.
A Russian government-controlled company, which the Justice Department does not name, originally entered into a contract with Nikitin and KSE to buy the power turbine, the press release said. The Justice Department said the Russian company intended to use the turbine on a Russian “Arctic deepwater drilling platform,” a use that was restricted by the Commerce Department due to national security reasons.
To evade U.S. controls, Nikitin, Cheremukhin and KSE hired Villone, Caparini and GVA to buy the turbine “on their behalf,” the Justice Department said. Villone, Caprini and GVA then “employed” Bagrou and WMO to buy the turbine from a U.S. manufacturer, ship it overseas and hide the end-user, the Justice Department said. The parties allegedly intended to submit false documentation that said the turbine would be used by an Atlanta company. They were arrested in Georgia while trying to complete the purchase.
Nikitin, Cheremukhin, Villone and Caparini face a maximum 20-year prison sentence and $1 million fine for violating IEEPA and ECRA and face a maximum five-year prison sentence and $250,000 fine for conspiracy to violate IEEPA and ECRA. Bagrou faces a maximum 20-year prison sentence and $500,000 fine for conspiracy to commit wire fraud and conspiracy to money launder.
Preventing and prosecuting illegal exports “remains a top priority” for the Bureau of Industry and Security, Douglas Hassebrock, acting assistant secretary for export enforcement, said in a statement. “We are committed to bringing lawbreakers, who have willfully chosen to threaten our nation’s security, to justice.”