On July 9th. in federal court in Brooklyn, Canadian national Nikolay Goltsev and Brooklyn resident Salimdzhon Nasriddinov pleaded guilty to conspiracy to commit export control violations for their roles in a global procurement scheme on behalf of sanctioned Russian companies, including companies with Russian military contracts.
Some of the electronic components shipped by the defendants were later found in seized Russian weapons platforms and signals intelligence equipment in Ukraine. The proceeding was held before United States Magistrate Judge Taryn A. Merkl. When sentenced, Goltsev and Nasriddinov each face up to 20 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York; Lisa O. Monaco, United States Deputy Attorney General; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations New York (HSI), Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement, U.S. Department of Commerce, announced the plea.
“The defendants flouted U.S. law to help Russia in its war against Ukraine, but they were stopped in their tracks and swiftly brought to justice,” stated United States Attorney Peace. “This Office will take on and successfully neutralize the complicated procurement networks that are making it possible for Russia to continue its unprovoked war against Ukraine.”
Mr. Peace thanked the U.S. Customs and Border Protection and the Justice Department’s Office of International Affairs for their valuable assistance to the investigation.
“The defendants shipped millions of dollars of U.S. electronics critical to the missiles and drones Russia uses to attack Ukraine, and they now face U.S. prison time for their scheme,” stated Deputy Attorney General Monaco. “As Russia continues to wage its unjust war of aggression against Ukraine, the Department remains committed to holding accountable those who fuel Putin’s war machine.”
“The defendants shipped millions of dollars’ worth of electronic components to Russia, including the exact type of parts found in Russian weapons and drones used to attack Ukraine,” stated Assistant Attorney General Olsen. “We know the devastation and destruction that these weapons cause and the Justice Department is committed to holding accountable those who violate U.S. laws to supply the Russian war machine.”
“With today’s guilty pleas, all three defendants have acknowledged their involvement in their scheme to provide more than $7 million worth of material support to the Kremlin in its inhumane attacks on Ukraine. Nikolay Goltsev, Salimdzhon Nasriddinov, and their co-conspirator coordinated the deployment of over 300 shipments of restricted electronics that were ultimately used on the Russian battlefield. HSI New York remains committed to utilizing its unique authorities to relentlessly pursue individuals who seek to exploit U.S. export control laws for financial gain,” stated HSI New York Special Agent in Charge Arvelo. “I am proud to stand alongside the Department of Justice, the FBI, and the Department of Commerce in confronting these issues directly.”
“Eliminating illegal global procurement networks that prop up the Russian war machine requires a full-court press,” stated Assistant Secretary for Export Enforcement Axelrod. “That’s why we and our law enforcement partners are working nonstop to ensure that those operating such networks – like Nasriddinov and Goltsev – face American justice.”
According to the court filings and statements made during the plea proceeding, the defendants used two Brooklyn companies, SH Brothers Inc. and SN Electronics Inc., to unlawfully source, purchase, and ship millions of dollars in dual-use electronics from U.S. manufacturers to sanctioned end users in Russia. Some of the electronic components and integrated circuits shipped by the defendants through SH Brothers have been found in seized Russian weapons platforms and signals intelligence equipment in Ukraine, including the Torn-MDM radio reconnaissance complex, the RB-301B “Borisoglebsk-2” electronic warfare complex, the Izdeliye 305E light multi-purpose guided missile, the Vitebsk L370 airborne counter missile system, Ka-52 helicopters, Orlan-10 unmanned aerial vehicles (“UAVs”) and T-72B3 battle tanks. Some of these components were critical to Russia’s precision-guided weapons systems being used against Ukraine. During the period charged in the indictment, SH Brothers made hundreds of shipments valued at over $7 million to Russia.
To carry out their criminal scheme, Nasriddinov and Goltsev purchased the electronic components from U.S. manufacturers and distributors under the auspices of SH Brothers and SN Electronics, and arranged for the items to be shipped from those manufacturers and distributors to various locations in Brooklyn. Nasriddinov and Goltsev then unlawfully shipped the items to a variety of intermediary front companies located in other countries, including Turkey, Hong Kong, India, China and the United Arab Emirates, where they were rerouted to Russia.
The defendants were aware of the potential military applications of the electronics that they exported to Russia. For example, in a message exchange on or about and between November 8, 2022 and November 15, 2022, Goltsev commented how shipping to Russia had become “dangerous” and discussed a shipment of electronic components that had been detained by U.S. officials at John F. Kennedy International Airport in Queens, New York. Nasriddinov responded that “Ukrainians alleged that they’re being bombed from parts from there [the U.S. manufacturer], maybe that’s why they started investigating everything?” Goltsev responded that, “we need to figure out why they keep holding the package . . . I don’t really understand how they figured [it] out.” In a subsequent message, Goltsev commented that, “in the future we will need to load from several companies, not to attract attention . . . for now large packages will be dangerous until we understand what they figured out . . . we will need to think of diversifying the load . . . so that not everything is moving from the same deck.”
In a February 23, 2023 message, Nasriddinov wrote to Goltsev, “Happy Defender of the Fatherland,” referring to the holiday in Russia and parts of the former Soviet Union celebrating those who served in the armed forces. Goltsev responded, “happy holiday to you too my friend, we are defending it in the way that we can [smile emoji].”
The scheme involved millions of dollars and proved to be lucrative for the defendants. For example, in a September 15, 2022 text message from Nasriddinov to Goltsev, Nasriddinov boasted, “SH [Brothers] is one of the best companies in the world, it’s time to move forward onto the stock exchange and stock market, capital should be in the billions, we are working.” Goltsev responded, “pushing components to those who need it I can do, everything else you will have to teach me [three smile emojis].”
The government seized $20,000 in cash from the New York hotel room in which defendant Goltsev was arrested. In total, the government has seized approximately $1.68 million in connection with this export scheme.
Goltsev and Nasriddinov are scheduled to be sentenced on Dec. 10 and Dec. 11, respectively. They each face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
A third co-defendant, Kristina Puzyreva, pleaded guilty in February 2024 to conspiracy to launder the proceeds of the export scheme. She is awaiting sentencing.
The FBI, HSI and Department of Commerce, Export Enforcement are investigating the case, with assistance from the U.S. Customs and Border Protection and Justice Department’s Office of International Affairs.
These actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is 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. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Artie McConnell and Ellen H. Sise are in charge of the prosecution, along with Trial Attorney Christopher M. Cook of the National Security Division’s Counterintelligence and Export Control Section. Assistant United States Attorney Laura Mantell of the Office’s Asset Recovery Section is handling forfeiture matters.
Note: View the plea agreement for Nikolay Goltsev here and plea agreement for Salimdzhon Nasriddinov here.
Source: United States Attorney’s Office