Indictments Handed Down in Export Scheme

Feb. 24, 2025
By: Ashley J. Bodden

While the array of new tariffs and proposed tariffs has the trade world’s attention, it is important to remember that enforcement agencies are still enforcing U.S. export control laws. Earlier this month, the Department of Justice unsealed its federal indictment against an Ohio-based supplier and three employees for illegally exporting aircraft parts and components from the United States to Russia and Russian airline companies without the required licenses from the Department of Commerce.

According to the 11-count indictment, Flighttime Enterprise Inc., an American subsidiary of a Russian aircraft parts supplier, with offices in Ohio and Florida, along with three of its current and former employees illegally exported parts and components to Russia without the required license. The indictment alleges that the employees knowingly and willfully violated and evaded export restrictions against the Russia to aviation parts to Russia and Russian end users, including airlines subject to the DOC Temporary Denial Orders, by mislabeling shipments, providing false certifications, and using intermediary companies and countries to obscure the true end destination and end user. The indictment specifies four alleged export transactions totaling more than $2 million.

As alleged in the indictment, in June 2022, Flighttime employees negotiated the purchase of an auxiliary power unit from an American supplier. The employee then falsely told the American supplier that the part would be used to replenish stock in West Chester, Ohio. Another employee then signed and dated a Russian end-user certificate with the supplier, falsely certifying that the part would not be exported to Russia. The part was thereafter exported to Russia for a Russian aviation company without the required license.

Flighttime and the three employees have each been charged with conspiracy to violate the Export Control Reform Act (ECRA), and violating the ECRA, which is punishable by up to 20 years in prison. They have also been charged with conspiracy to commit smuggling, smuggling, and conspiracy to launder monetary instruments, which are all punishable by lengthy prison time.

This is a prime example of potential consequences under the export control laws. Potential prison sentences, as well as hefty fines are a high price to pay for any employee to violate the law. Therefore, it is important not only for companies but also individuals to compile with all requirements of export control laws.

Barnes Richardson has extensive experience with complex compliance, licensing, and enforcement matters. If you have any questions surrounding the applicability of export controls on your company or a particular transaction, please contact any attorney at Barnes Richardson and Colburn.