Russian National Jailed for Smuggling US Military Tech to Russia

Russian businessman sentenced to 3 years for smuggling military-grade microelectronics to Russia via Hong Kong. Maxim Marchenko used shell companies to illegally procure OLED displays for Russian military applications.

A Hong Kong-based Russian national, Maxim Marchenko, has been sentenced to three years in prison for his role in a sophisticated scheme to illegally procure US-made military-grade microelectronics and funnel them to Russia.

Marchenko, 52, operated a network of shell companies that disguised the true destination of sensitive OLED micro-displays, crucial components used in advanced weaponry like night vision goggles and rifle scopes. He and his co-conspirators, also Russian nationals, deceived US distributors by falsely claiming the microelectronics were destined for legitimate uses in China, Hong Kong, and other countries.

According to the U.S. Department of Justice’s (DOJ) press release, The scheme, which ran from May 2022 to August 2023, saw Marchenko’s shell companies, including Alice Components, Neway Technologies Limited, and RG Solutions Limited, purchase over $1.6 million worth of these sensitive technologies. The microelectronics were then transshipped through third countries, ultimately reaching Russian end users.

“This sentence sends a clear message that we will not tolerate the illicit procurement of US technology that ultimately ends up fueling Russia’s aggression,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division.

The FBI, the Commerce Department’s Bureau of Industry and Security, and the State Department’s Diplomatic Security Service collaborated on the investigation, with assistance from the Justice Department’s Office of International Affairs.

This case was prosecuted by the Southern District of New York and the National Security Division’s Counterintelligence and Export Control Section. It was coordinated through the Justice Department’s Task Force KleptoCapture and the Disruptive Technology Strike Force, both dedicated to combating Russia’s efforts to acquire critical technology.

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