Denis Postov, a 44-year-old Russian citizen, has been accused of violating US export restrictions, money laundering, and illegally supplying microelectronic components, including those for military use, to Russia, reports the US Department of Justice.
On 17 September, he was detained in Sarasota, Florida, on an indictment charging him with conspiring to violate the US Export Control Reform Act, to commit smuggling, to commit money laundering, and to defraud the US.
The indictment alleges that since February 2022, Postovoy procured and illicitly exported microelectronic components with military applications from the US to Russia. The exported microelectronics can be used in unmanned aerial vehicles or drones.
“Through a web of companies that he owns or operates in Russia, Hong Kong, and elsewhere, Postovoy and individuals in his network purchased the microelectronics from US-based distributors and exported them to Russia without the required licenses from the US Department of Commerce,” said the US Department of Justice.
According to the indictment, illegally exported dual-use technology to Russia could bolster its capabilities to wage war against Ukraine, said US Attorney Matthew M. Graves.
“As alleged, he lied about the final destination for the technology he was shipping and used intermediary destinations to mask this illegal activity,” Graves added.
The case is being investigated by Homeland Security Investigations Colorado Springs.
Postovoy’s companies reportedly included WowCube HK Limited, JST Group Hong Kong, Jove HK Limited, all based in Hong Kong, and the Vector Group in Russia.
Postovoy repeatedly “concealed and misstated the true end users and end destinations of the microelectronics by submitting false information on documents.”
He transshipped items for Russia through intermediary destinations, including Hong Kong and Switzerland, and received payments in US dollars from foreign bank accounts.
His companies transferred funds to purchase and ship the goods through bank accounts in Hong Kong and Russia to bank accounts in the US, including bank accounts maintained by the US suppliers of microelectronics and other sensitive technologies, said the US Department of Justice.
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