MOSCOW (dpa-AFX) - A U.S. businessman has been arrested for operating an years-long scheme to illegally export semiconductors and sensitive technology to Russia for the use of its military and intelligence services.
66 year-old Ilya Kahn, who also holds Israeli and Russian citizenships, was arrested in Los Angeles, the U.S. Department of Justice said in a statement.
He allegedly used a network of businesses in China and other countries to transfer hundreds of thousands of semiconductors to leading Russian developers of microchips and devices, Elvees.
The joint stock company was sanctioned by the U.S. government following Russia's invasion of Ukraine over its ties with Russian military and the Federal Security Service.
According to court documents, Kahn is the owner of two businesses - California-based Senesys Incorporated and Brooklyn-based Sensor Design Association. It alleges that these firms were involved in 'security software development' and the testing of silicon wafers for military avionics and space users - through which he was exporting sensitive and sophisticated electronics from the United States without acquiring the appropriate licenses.
In 2019, Kahn exported multiple U.S.-origin microcontrollers and in 2022, he exported U.S.-origin network interface controllers and a radio-frequency transmitter to
Elvees through a Hong Kong-based shipping company. These items required an export license from the Commerce Department, as they were highly sensitive due to national security and anti-terrorism reasons.
Kahn also arranged for Elvees to continue to receive semiconductors manufactured in Taiwan following Russia's invasion of Ukraine.
If convicted, Kahn will face a maximum penalty of 20 years in prison for conspiracy to violate the Export Control Reform Act.
The FBI and Department of Commerce's BIS New York Field Office are investigating the case with assistance from the U.S. Attorney's Office for the Central District of California.
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