The defendant, who resided in Florida, allegedly participated in global illicit procurement network that used entities in Hong Kong and elsewhere to procure components used in unmanned aerial vehicles for Russian end users
WASHINGTON — A Russian citizen living in Sarasota, Florida, was arrested on the morning of Sept. 16 on an indictment charging him with conspiring to violate the Export Control Reform Act to commit smuggling, to commit money laundering, and to defraud the United States.
The indictment was announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General Matt Olsen with the Department of Justice’s National Security Division and Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin of HSI Denver.
“This defendant attempted to procure and illegally export dual-use microelectronics with military applications and ultimately ship them back to Russia,” said Spradlin. “Mr. Postovoy will now face justice for his duplicity. Our stellar agents will continue to investigate these crimes alongside our strike force partners and the Department of Justice and hold these criminals accountable who threaten the security of the United States.”
“According to the indictment, this defendant illegally exported dual-use technology to Russia that could bolster its capabilities to wage its unprovoked war against Ukraine,” said Graves. “As alleged, he lied about the final destination for the technology he was shipping and used intermediary destinations to mask this illegal activity. Fortunately, our skilled law enforcement partners at HSI and our dedicated attorneys unraveled the plot.”
Denis Postovoy, 44, was arrested in Sarasota.
The indictment alleges that, beginning in at least February 2022, following Russia’s full-scale invasion of Ukraine, Postovoy procured and illicitly exported from the United States to Russia microelectronic components with military applications. The exported microelectronics can be used in unmanned aerial vehicles (UAVs 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 U.S.-based distributors and exported them to Russia without the required licenses from the U.S. Department of Commerce.
As alleged, Postovoy’s companies included WowCube HK Limited, JST Group Hong Kong and 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 that were ultimately destined for Russia through intermediary destinations, including Hong Kong, Switzerland and elsewhere, and received payments in U.S. dollars from foreign bank accounts. His companies transferred funds for the purchase and shipment of the goods through bank accounts in Hong Kong, Russia and elsewhere to bank accounts in the United States, including bank accounts maintained by the U.S. suppliers of microelectronics and other sensitive technologies.
This case is being investigated by HSI Colorado Springs. It is being prosecuted by Assistant U.S. Attorney Stuart D. Allen of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Sean R. Heiden of the National Security Division’s Counterintelligence and Export Control Section.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Sept. 16 actions were coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce, designed to target illicit actors, protect supply chains and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. government to enhance the criminal and administrative enforcement of export control laws.
HSI's Counterproliferation Investigations program prevents illicit procurement networks, terrorist groups and hostile nations from illegally obtaining United States military products, sensitive dual-use technology, weapons of mass destruction, or chemical, biological, radiological and nuclear materials.
If you see something unusual, say something. Please contact the HSI Tip Line at 877-4-HSI-TIP.
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