Ilya Khan, a businessman with citizenship in the United States, Israel, and Russia, has pleaded guilty to charges related to exporting sensitive technology to Russia. The 66-year-old admitted his role in a scheme that involved illegally exporting dual-use semiconductors and other technologies to Russian entities such as Joint Stock Company Research and Development Center ELVEES (Elvees). Elvees was sanctioned by the U.S. government in 2022 for its contributions to Russia's security services and military sectors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division commented on the plea: “Today’s guilty plea is another step towards stopping the illicit flow of technology to support the Russian war machine.” He emphasized the department's commitment to disrupting illegal exports of sensitive electronics.
Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Department of Commerce praised law enforcement efforts: “Kahn’s brazen, multi-million dollar scheme...was doomed to fail due to exemplary investigative work.” He reiterated their focus on disrupting illicit procurement networks aiding Russia.
Executive Assistant Director Robert Wells of the FBI’s National Security Branch highlighted the broader implications: “The illegal export of goods and technology to Russia is a threat to U.S. economic and national security.”
U.S. Attorney Breon Peace for the Eastern District of New York described Kahn's actions as critical in supporting Russia's chip design capabilities: “Semiconductors...are the lifeblood of Russia’s war machine.”
Chief Guy Ficco from IRS Criminal Investigation noted Kahn's tax evasion alongside his export violations: “Kahn’s multi-million dollar business threatened national and financial security.”
Khan owned Senesys Incorporated and Sensor Design Association, operating these businesses as fronts for acquiring sensitive electronics from the U.S. without required licenses. Despite sanctions imposed on Elvees in March 2022, Kahn continued operations with them.
His activities date back at least a decade, with accounts under his control receiving over $50 million from Elvees-related entities between 2012 and 2022. Nearly $5 million was used personally by Khan without reporting it for taxes.
As part of his plea agreement, Khan will forfeit nearly $5 million in gains and pay additional restitution to the IRS. He faces up to 20 years in prison.
The case was investigated by the FBI Los Angeles Field Office, with prosecution led by Assistant U.S. Attorneys Artie McConnell and Matthew Skurnik along with Trial Attorney Scott Claffee.
These proceedings were coordinated through initiatives like Task Force KleptoCapture, aimed at enforcing sanctions against Russia following its invasion of Ukraine.
