BOSTON — Two men, one from Massachusetts, face charges for allegedly smuggling and conspiring to violate and evade export controls relating to the sale of laser equipment to the Russian nuclear energy industry after their conspiracy was uncovered by HSI special agents and law enforcement partners.
Sam Bhambhani, 55, of North Attleboro, and Maxim Teslenko, 35, of Moscow, Russia, were each indicted on one count of smuggling and one count of conspiracy to violate and evade export controls, commit smuggling, and defraud the United States. Bhambhani was arrested on Sept. 9 and was released on conditions following an initial appearance in federal court in Boston. Teslenko remains at large overseas.
“Bhambhani and Teslenko allegedly conspired to smuggle sensitive machinery into Russia to enhance Russian nuclear capabilities. They’re alleged to have willfully violated export controls specifically intended to protect the security of our nation and to keep dangerous technology out of the hands of adversarial regimes,” said Homeland Security Investigations (HSI) New England Special Agent in Charge Michael J. Krol. “HSI and our partners will continue to work tirelessly to ensure the sanctity of our most sensitive defense technologies.”
It is alleged that beginning in or around 2015 through at least 2021, Bhambhani and Teslenko conspired to export laser welding machines from Bhambhani’s employer in the United States to the Ural Electromechanical Plant in Yekaterinburg, Russia, while falsifying the export documentation submitted to the U.S. government in order to conceal the fact that the UEMZ was the true end user of the machines. The Ural Electromechanical Plant is a subsidiary of Rosatom, a Russian state corporation headquartered in Moscow, that oversaw Russia’s civilian and military nuclear program. According to the indictment, Teslenko knew that the laser welding machines were intended for the portion of the Ural Electromechanical Plant involving the Russian nuclear weapons program.
The charge of smuggling provides for a sentence of up to 10 years in prison, three years supervised release and a fine of up to $250,000. The charge of conspiracy provides for a sentence of up to five years in prison, three years supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. sentencing guidelines and statutes that govern the determination of a sentence in a criminal case.
The details contained in the charging documents are allegations. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI special agents assigned to the agency's counterproliferation investigations program are on the front lines of the U.S. government's fight to prevent the illicit export and transfer of sensitive military and dual-purpose technology and defense articles to transnational criminal organizations, terrorist groups, adversarial nation states and other nefarious entities operating around the world. As the only U.S. government agency with full statutory authority to enforce all U.S. export control laws relating to military items, controlled dual-purpose goods and sanctions violations, HSI stands at the forefront of the government’s counter-proliferation mission.
“This case underscores our unwavering commitment to enforcing U.S. export laws and safeguarding national security,” said acting U.S. Attorney Joshua S. Levy. “The defendants are alleged to have engaged in a sophisticated scheme to evade export controls, deceiving the government about the true destination of sensitive technology and putting critical national interests at risk. We will continue to work tirelessly with our federal partners to keep our country's most sensitive technologies out of the world's most dangerous hands.”
“These two men are accused of helping Russia illegally acquire cutting edge, American made laser welding machines in support of this hostile nation state's nuclear program. As part of their shameful efforts to evade our country’s export laws, we believe these men utilized shell companies, fictitious personas and falsified records,” said Jodi Cohen, Special Agent in Charge of the FBI’s Boston Division. “This is yet another flagrant example of Russia using illicit procurement networks to advance their goals to the detriment of our country’s national security. Let this case serve as a warning to others that if you violate U.S. export controls or evade U.S. sanctions, the FBI and our partners will find you and ensure that you are brought to justice.”
“The Office of Export Enforcement is committed to vigorously investigating illegal exports to Russia and will hold all those who violate our export control laws accountable, whether those violations involve smuggling, illicit procurement, transshipment, or other illegal schemes,” said Acting Special Agent in Charge Aaron Tambrini, U.S. Department of Commerce’s Office of Export Enforcement, Boston Field Office. “This multi-year investigation is a testament to the excellent cooperation between our law enforcement partners in countering Russia’s nuclear weapons program.”
Krol, Levy, Cohen and Tambrini made the announcement Sept. 16.