Israeli-American businessman admits to smuggling advanced technological equipment to Russia

Israeli-American businessman Ilya Khan, 66, who also holds Russian citizenship, pleaded guilty Thursday in U.S. federal court in Brooklyn to conspiracy to violate the Export Control Reform Act for his role in a transnational, multi-million-dollar scheme to secure and illegally export dual-use semiconductors and other sensitive technology to Joint Stock Company Research and Development Center ELVEES (Elvees) and other entities in Russia. Elvees, one of the leading Russian developers of microchips, was sanctioned by the U.S. government in 2022 for contributing to Russia’s security services, military and defense sectors. Kahn also pleaded guilty to attempted tax evasion for failing to pay taxes on the illicit income he earned from the scheme. He agreed to pay a fine of approximately $4.92 million, and an additional $1.89 million as income tax that was not reported to the U.S. authorities. The maximum sentence he faces for the convictions is up to 20 years in prison.
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