Court Orders Seizure of Estonian Company's Funds Due to Export Control Violations
The U.S. District Court for the District of Connecticut ordered Estonia-based exporter By Trade OU to forfeit about $826,000 in connection with the attempted export of a dual-use export-controlled item to Russia, DOJ announced. The company, along with a Latvia-based corporation, conspired to ship a jig grinder made in Connecticut to Russia.
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A jig grinder is a "high-precision grinding machine system" that requires a license to be shipped to Russia, given its "potential application in nuclear proliferation and defense programs." By Trade OU did not obtain a license to ship the jig grinder, in violation of the Export Control Reform Act of 2018 and the Export Administration Regulations. The company pleaded guilty to violating these laws, admitting to receiving funds from a Russian company to buy the jig grinder on its behalf from a Latvian company.
By Trade OU asked the court to order the forfeiture of all its assets as punishment, totaling over $337,000, since it would not be able to pay any fine ordered by the court. The court ordered the forfeiture of $484,696 and another $342,000 sized from the company.