A businessman has been arrested within the US and charged with unlawfully exporting delicate know-how together with semiconductors to a sanctioned enterprise with ties to Russia’s navy and intelligence companies.
Court docket paperwork filed with the US District Court docket for the Jap District of New York determine the person as Ilya Kahn, a 66-year-old citizen of the US, Israel, and Russia, and listed as a resident of Brooklyn, New York, and Los Angeles.
Kahn was arrested for his alleged involvement in a long-running scheme to amass and unlawfully export delicate know-how from the US for the advantage of a Russian enterprise, a semiconductor firm with shut ties to the Russian authorities.
That enterprise, Joint Inventory Firm Analysis and Improvement Middle ELVEES (Elvees), was added to the US Commerce Division’s Entity Listing in March 2022. It was then sanctioned by the Treasury Division in September 2022 for facilitating Russia’s navy and its invasion of Ukraine.
Kahn is claimed to be the proprietor of Senesys Included, based mostly in California, and Sensor Design Affiliation, which has a contact tackle in Brooklyn. The businesses had been supposedly concerned in safety software program growth and testing of silicon wafers for navy avionics and house use.
As alleged in the complaint [PDF], Kahn is alleged to have used these companies to amass delicate digital units within the US and export them to Elvees, with out buying the suitable licenses.
Kahn is alleged to have exported numerous microcontrollers to Elvees in Russia, plus US-made community interface controllers and a radio-frequency transmitter by the use of a Hong Kong-based transport firm. Every of this stuff required an export license from the Commerce Division, which the Feds mentioned Kahn didn’t get hold of. The precise sorts of microcontroller and different package weren’t disclosed.
The criticism goes on to assert the accused organized for Elvees to proceed to obtain semiconductors manufactured in Taiwan following Russia’s invasion of Ukraine in February 2022. The Taiwanese producer halted shipments to Russia, and in response to the submitting, Kahn is claimed to have organized for the chips to be despatched first to the US, then re-exported to Russia via a transport firm based mostly at John F. Kennedy Worldwide Airport.
The criticism additionally alleges Kahn emailed design steering for an Elvees-branded microchip to a Taiwanese producer in Might 2022, and subsequently exported 1000’s of models of this microchip. These went to a Hong Kong transport firm, then to an organization positioned in mainland China.
The courtroom doc notes that Kahn knowledgeable the Hong Kong transport firm that he obtained a “name from Russia” in regards to the Chinese language enterprise to which he was directing the products.
Investigating the case are the FBI and the Division of Commerce’s Bureau of Business and Safety (BIS), with help from the US Lawyer’s Workplace for the Central District of California.
If convicted, Kahn faces a most penalty of 20 years in jail for conspiracy to violate the Export Management Reform Act (ECRA), and can make his preliminary courtroom look within the Central District of California. No date for this has been disclosed. ®