Georgia Company, Owner Plead Guilty to Export Control Reform Act Violation
Dali Bagrou and his company World Mining and Oil Supply pleaded guilty on Aug. 2 in the U.S. District Court for the Southern District of Georgia to violating the Export Control Reform Act, the U.S. Attorney's Office for the Southern District of Georgia said in a press release. The scheme started when a Russian state-owned enterprise began working with Oleg Vladislavovich Nikitin, general director of Russia-based energy company KS Engineering, to buy a power turbine from a U.S.-based manufacturer for around $17.3 million, the release 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 turbine was to be used on a Russian Arctic deepwater drilling platform -- a transaction banned by the Commerce Department unless the agency grants a license. Nikitin conspired with Gabrielle Villone and Villone's company GVA to get the turbine. Villone and the company then went to Bagrou and WMO to get the turbine from a U.S.-based producer and have it shipped to Russia. Those involved submitted false information to the U.S. about the end user of the turbine, the release said. Nikitin, Villone and Bagrou were arrested together in 2019 when attempting to buy the turbine. As part of the guilty plea, Bagrou faces up to five years in prison and "substantial financial penalties," while WMO faces up to five years' probation coupled with large fines, the release said.
"Special Agents of the Bureau of Industry and Security’s Office of Export Enforcement (OEE) will aggressively enforce Russia sectoral sanctions violations and any attempt to procure U.S origin goods in violation of U.S. export laws,” said Ariel Leinwand, special agent in charge of OEE’s Atlanta Office. “The substantial penalties from this guilty plea should serve as a deterrent to those seeking to engage in illegal export activities.”