The Department of Justice (DOJ) has issued a press release stating that Ilya Kahn leveraged his business connections in China and other countries to transfer hundreds of thousands of semiconductors to businesses sanctioned by the United States. These recipient businesses reportedly have links to the Russian Military and Russian Intelligence Agencies.
In another press release, the DOJ reveals that Kahn has been implicated in this scheme for over a year, unlawfully exporting millions of dollars worth of sensitive security technology to benefit Russia. Kahn now faces charges of conspiracy to violate the Export Control Reform Act (ECRA) due to his involvement in this operation. Holding citizenships in the United States, Israel, and Russia, Kahn could face a maximum penalty of 20 years if convicted for his role in this scheme.
According to yet another DOJ press release, it is alleged that Kahn, previously an engineer in the US, exported microcontrollers and network interface controllers to Elvees, a Russian business, in 2019, 2022, and 2023 without securing an export license from the Commerce Department. Furthermore, he reportedly arranged for Elvees to continue receiving semiconductors from Taiwan post Russia's invasion of Ukraine by using Hong Kong and other locations as transshipment points. This was done with an intention to evade US export laws and conceal Russian end users.
U.S. Attorney Breon Peace for the Eastern District of New York commented on the situation: "As alleged, Kahn illegally sent specialized technology from the United States to a Russian semiconductor manufacturer with ties to multiple other sanctioned Russian entities and did so by circumventing U.S. export laws and regulations." Peace further emphasized that evading U.S export regulations to send goods benefiting the Russian military complex poses a threat to national security as well as allies and partners abroad. He concluded by affirming that they will continue using all law enforcement and national security tools at their disposal to hold accountable those individuals or corporations that flout the rule of law.
