Vadim Yermolenko, 43, a dual US-Russian national and resident of New Jersey, has pleaded guilty to multiple charges related to his role in sanctions busting as part of a gang that operated in the US and Europe for nearly eight years.
According to the FBI, Yermolenko was a key player in a Russian intelligence controlled scheme and “unlawfully purchased and exported highly sensitive, export controlled electronic components, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing and other military applications.”
“The illegal export of sensitive, dual-use technologies in support of Russia’s war effort poses a significant threat to the United States and its allies and must not be tolerated,” declared FBI director Christopher Wray.
He went on to say: “The defendant in this case played a key role in exporting US technology that in the hands of our adversaries could pose great danger to our national security. The FBI and its partners will continue to focus on protecting strategic innovation at home and hold accountable anyone who facilitates illegal transfers to hostile nations like Russia.”
The FBI claims the gang was involved in two front companies, Serniya Engineering and Sertal, set up at the behest of the Russian intelligence agency Federal Security Service (FSB) after sanctions were imposed following the invasion of Ukraine in 2022. Later in the year, when sanctions were tightened after Russia expanded its invasion, the two entities were blocklisted by the US authorities, but continued to operate via shell companies in the US and Europe.
Under the scheme, the Russian military, scientific institutions, and manufacturers placed orders with Serniya and Sertal, who then sourced the goods and sent them out to shell companies in the UK, Estonia, Finland, the Netherlands, Germany, and Hong Kong. The authorities say goods worth at least $12 million were shipped using this web of paper companies.
The feds say Yermolenko was in charge of the New Jersey side of the cooperation – reboxing equipment like laboratory lasers, signal generators, oscilloscopes, transistors, and even ammunition. He would set up front companies, forge end-user certificates, and replace shipping labels to disguise the items’ cost and destination, so as to fly under the sanctions radar.
They allege he was adept at forging documentation, although sometimes he did use his wife’s signature on some documents. According to the court filing [PDF], the techniques are illustrated by an April 29, 2022 conversation in which a fellow team member instructed Yermolenko:
You need to call or, which would be better, go to the bank. You need to find out why they won’t send the outgoing wire transfer to Iceland. If the bank asks what the payment is for, it’s for bicycle spare parts, sporting goods and textile products.
In another exchange, the complaint details, a different member of the group – tasked with distributing the hardware in Russia – took delivery of a military-grade spectrum analyzer. He called up the American manufacturer to complain that it was improperly calibrated. He then allegedly let slip to the support staffer that the unit was in Russia and the staffer then explained that he couldn’t talk to him anymore because of the sanctions.
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According to the document, the group was caught by Estonian authorities, who stopped one of the team – a suspected FSB officer called Vadim Konoshchenok – and found his vehicle packed with 35 types of semiconductors and other electronics, and thousands of rounds of 6.5mm sniper ammunition. Konoshchenok was extradited to the US, but then repatriated to Russia as part of a prisoner exchange in August.
“This defendant admitted to playing a central role in a now-disrupted scheme with Russian intelligence services to smuggle sniper rifle ammunition and US military grade equipment into Russia,” explained attorney general Merrick Garland.
“The Justice Department will never stop working to aggressively disrupt and prosecute both the criminal networks and the individuals responsible for bolstering the Russian war machine.”
Yermolenko has pleaded guilty to charges of conspiracy to violate the Export Control Reform Act, conspiracy to commit bank fraud, and conspiracy to defraud the US. His New Hampshire-based co-conspirator, American permanent resident Alexey Brayman, has already pleaded guilty to conspiracy to defraud the US, and there is a case pending against Greek importer Nikolaos Bogonikolos.
The rest of the gang are in Russia, and unlikely to see the inside of a US jail cell. ®
This post was originally published on here
