Three U.S. citizens and Quadrant Magnetics were charged with wire fraud, violating the Arms Export Control Act and smuggling goods relating to their participation in an illegal scheme to ship export-controlled defense-related technical data to China, DOJ announced. They also allegedly supplied DOD with Chinese-origin rare earth magnets for aviation systems and military items, DOJ said.
The Commerce Department again renewed a temporary export denial order for Mahan Airways because the airline continues to violate the order and the Export Administration Regulations, according to a notice issued this week. Mahan Airways has been on the banned list since 2008, and Commerce said the Iranian airline has continued to fly into Moscow in violation of U.S. export controls against Russia. The latest renewal is for 180 days from Nov. 8.
The Bureau of Industry and Security this week revoked the export privileges for Jose Martin Gallegos-Luevanos for his role in illegal exports of firearms to Mexico. Gallegos-Luevanos, currently in a federal prison in Louisiana, was convicted Jan. 6, 2020, for “fraudulently and knowingly” trying to export from the U.S. to Mexico one Barrett .50 caliber bolt rifle, three FA Cugir Romanian AK-47 rifles, seven Century Arms VSKA AK-47 rifles, one Century Arms WASR AK-47 rifle and 85 assorted magazines. Gallegos-Luevanos was sentenced to four years in prison, three years of supervised release and a $100 assessment. BIS denied Gallegos-Luevanos’ export privileges for 10 years from the date of conviction.
Arturo Carlos Murillo Prijic, Bolivia's former minister of government, pleaded guilty Oct. 20 to conspiracy to launder bribes received in exchange for helping a U.S. company secure a $5.6 million contract from the Bolivian government, DOJ announced. Murillo faces a maximum 10-year prison sentence after pleading guilty to one count of conspiracy to commit money laundering.
The U.S. Attorney's Office for the District of Connecticut charged a group of European individuals and entities with violating U.S. export laws by trying to ship a dual-use export-controlled item to Russia, the office announced Oct. 19, the day after the indictment was unsealed. The investigation was coordinated by the Task Force KleptoCapture, an interagency group that also works with other countries to enforce U.S. sanctions.
Five Russian nationals and two oil traders were charged in a 12-count indictment unsealed Oct. 19 for their role in a global procurement, smuggling and money laundering network, the U.S. Attorney's Office for the Eastern District of New York announced. The Russian nationals are Yury Orekhov, Artem Uss, Svetlana Kuzurgasheva, Timofey Telegin and Sergey Tulyakov. The oil traders are Juan Fernando Serrano Ponce and Juan Carlos Soto. The oil traders allegedly brokered illegal oil deals for a Venezuelan state-owned oil company, Petroleos de Venezuela, as part of the scheme.
The Bureau of Industry and Security this week revoked the export privileges for Texas resident Claudia Delgadillo for her role in illegally concealing, buying and facilitating the “transportation and concealment” of rifles and handguns from the U.S. to Mexico. BIS said Delgadillo was convicted Oct. 9, 2019, and was sentenced to four years in prison, three years of supervised release and a $100 assessment. BIS denied Delgadillo's export privileges for 10 years from the date of conviction.
Truphone agreed to divest Russian investors and pay a $600,000 fine for failing to disclose accurate ownership stakes held by foreign entities and transferring control of FCC licenses and international section 214 authorization without agency approval. In April, the FCC had proposed a fine of $660,639. The FCC said sanctioned Russian oligarch Roman Abramovich invested in the company and Truphone didn’t provide timely notice or seek commission approval. “Since 2011, Truphone’s ownership and reports regarding its foreign ownership have changed over time without accurate and requisite reporting to the Commission,” the Enforcement Bureau said in the Oct. 20 order. A Truphone spokesperson didn't respond to a request for comment.
The Bureau of Industry and Security this week renewed the temporary denial order for Moscow-based air cargo carrier Aviastar. BIS first suspended the export privileges of the Russian cargo charter airline in April (see 2204210043), barring it from participating in transactions with items subject to the Export Administration Regulations. The agency renewed the denial order for another 180 days after finding Aviastar continued to illegally operate aircraft subject to the EAR, including for flights between Russia and China.
French global building materials manufacturer Lafarge along with its Syrian subsidiary, Lafarge Cement Syria, pleaded guilty on Oct. 18 to conspiring to provide material support and resources to the Islamic State of Iraq and al-Sham and the al-Nusrah Front, the U.S. Attorney's Office for the Eastern District of New York announced. Both ISIS and ANF are sanctioned foreign terrorist organizations. Immediately following the guilty pleas, Judge William Kuntz sentenced the companies to probation terms and financial penalties. The companies will pay $90.78 million in criminal fines and $687 million in forfeiture, totaling $777.78 million.