Category: Security Intelligence

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

Arthur Petrov, 33, a dual Russian-German citizen who has resided in Russia and Cyprus, is charged by criminal complaint, unsealed today, with export control violations, smuggling, wire fraud, and money laundering offenses based on his alleged participation in an ongoing scheme to procure U.S.-sourced microelectronics subject to U.S. export controls on behalf of a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military.

Petrov was arrested on Aug. 26 in the Republic of Cyprus at the request of the United States.

“As alleged in the complaint, Arthur Petrov conspired to smuggle U.S. microelectronics technology with military applications to Russia, the type of components used by the Russian military in its unjust invasion of Ukraine,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will not tolerate efforts to circumvent our export control laws to fuel the Russian war machine and those who try will find no refuge from U.S. justice. We thank our partners in the Republic of Cyprus for their law enforcement cooperation and continued support.” 

“Those how evade our export control restrictions to support Putin’s brutal war machine will be held accountable,” said Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod. “In conjunction with today’s criminal action, we have issued a Temporary Denial Order to shutter this alleged illicit procurement network’s access to the type of U.S. micro-electronics embedded in Russian missiles and drones that have been used in its unprovoked war against the Ukrainian people.”

“Arthur Petrov is alleged to have participated in an international illicit procurement network based in Russia, using shell companies to smuggle shipments from U.S. distributors of microelectronics with military applications through intermediary countries in order to conceal the ultimate destination of these sensitive materials: Russia. As alleged, Petrov knew that the transactions and shipments were in contravention of U.S. export controls relating to Russia,” said U.S. Attorney Damian Williams for the Southern District of New York. “Efforts to illicitly supply Russia with U.S.-sourced military technology represent an affront to national security and will continue to be met with criminal prosecutions by this office.”

“Petrov’s alleged conduct in the complaint represents a complex, concerted scheme to circumvent U.S. law and export controls,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “The alleged creation and establishment of an intricate network of shell companies demonstrates the elaborate measures adversaries will take to steal sensitive technology. The FBI remains committed to dismantling criminal enterprises’ intent on threatening national security.”  

According to court documents, Petrov is a dual Russian-German national who works for LLC Electrocom VPK (Electrocom), a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military. Petrov and two co-conspirators (CC-1 and CC-2), who are Russian nationals also working for Electrocom, operated an illicit procurement network in Russia and elsewhere overseas. As alleged, following Russia’ invasion of Ukraine in February 2022 and continuing until August 2023, they fraudulently procured from U.S. distributors large quantities of microelectronics subject to U.S. export controls on behalf of Electrocom. To carry out the scheme, Petrov, CC-1, and CC-2 used shell companies and other deceptive means to conceal that the electronics components were destined for Russia. The technology that Petrov and his co-conspirators procured during the course of the conspiracy have significant military applications and include various types of electronics components of the sort that have been recovered in Russian military hardware on the battlefield in Ukraine, such as Russian guided missiles, drones, and electronic warfare and communications devices.

To perpetrate the scheme, Petrov first acquired the controlled microelectronics from U.S.-based electronics exporters using a Cyprus-based shell company, Astrafteros Technokosmos LTD (Astrafteros), which he operates. Petrov procured these sensitive electronics components by falsely representing to the U.S. exporters that Astrafteros was purchasing the items for fire security systems, among other commercial uses, and that the ultimate end-users and destinations of the electronics are companies in Cyprus or other third countries — when in fact the components are destined for Electrocom in Russia, which supplies manufacturers for the Russian military. The microelectronics that Petrov procured as part of the conspiracy include, among other things, microcontrollers and integrated circuits that are on the Commerce Control List maintained by the Commerce Department and cannot lawfully be exported or reexported to Russia without a license from the Commerce Department. Invoices provided to Petrov by the U.S. distributors expressly noted that these microcontrollers and integrated circuits are subject to U.S. export controls.

To evade these controls, Petrov, CC-1, and CC-2 worked together to transship the controlled items procured by Petrov using pass-through entities operated by CC-1 and CC-2 in third countries. CC-1 and CC-2 then caused the items to be shipped, sometimes through yet another country, to the ultimate destination: Electrocom in Saint Petersburg, Russia. At all times, Petrov, CC-1, and CC-2 concealed from the U.S. distributors that they were procuring the controlled electronics components on behalf of Electrocom and that the items were destined for Russia. During the course of the conspiracy, Petrov, CC-1, and CC-2 procured from U.S. distributors and shipped to Russia more than $225,000 worth of controlled electronics components with military applications.

Petrov is charged with one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison; one count of conspiracy to violate the Export Control Reform Act (ECRA), which carries a maximum sentence of 20 years in prison; three counts of violating the ECRA, which each carry a maximum sentence of 20 years in prison; one count of conspiracy to smuggle goods from the United States, which carries a maximum sentence of five years in prison; three counts of smuggling goods from the United States, which each carry a maximum sentence of 10 years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum sentence 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.

The FBI and the Department of Commerce’s Bureau of Industry and Security are investigating the case, with valuable assistance provided by the FBI’s Legal Attaché offices in Poland, Germany, and Athens, Greece; the Justice Department’s National Security Division; and the Justice Department’s Office of International Affairs. The Republic of Cyprus National Police also provided critical assistance in effecting the defendant’s arrest and detention at the request of the United States.

Assistant U.S. Attorney Kevin Sullivan for the Southern District of New York is prosecuting the case, with assistance from Trial Attorney Maria Fedor of the Counterintelligence and Export Control Section.

Today’s actions were coordinated through the Justice Department’s Task Force KleptoCapture and the Justice and Commerce Departments’ Disruptive Technology Strike Force. 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 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.

A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: Federal Bureau of Investigation FBI Crime News (b)

BOSTON – A former Sergeant with the Massachusetts Bay Transportation Authority (MBTA) Transit Police Department (Transit Police) was arrested today in connection with the alleged filing of false reports regarding another Transit Police Officer’s assault on a man at the Ashmont MBTA Station.

David S. Finnerty, 47, of Rutland, was indicted on two counts of false reports. Finnerty was arrested this morning and will appear in federal court in Boston later today.

“Our office holds the men and women who wear police uniforms and serve our communities in the highest regard. Instances of police misconduct are rare, but they need to be investigated and prosecuted when they do happen, especially when supervisors are involved as alleged here. For the good of the community and all the honorable officers and supervisors in the police ranks, misconduct of this nature cannot be tolerated. I commend the leadership of the MBTA Transit Police for their sustained cooperation in this investigation,” said Acting United States Attorney Joshua S. Levy. 

“Today, the FBI arrested former Transit Police Sgt. David Finnerty for violating his oath by filing false reports to try and obstruct an investigation into another officer’s assault on a man at the MBTA’s Ashmont station. We believe Sgt. Finnerty not only failed to lead by example, but betrayed the trust placed in him by his fellow officers, and the public,” said Jodi Cohen Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Make no mistake, the FBI will do everything we can to help our law enforcement partners bring to justice anyone who violates their oath by trying to cover up civil rights violations, overshadowing the majority of officers who are dedicated, honest, and fully committed to enforcing our laws and building trust within their communities.”

According to the indictment, Finnerty was the Transit Police Officer in Charge and the supervisor of Transit Police Officer D.B. It is alleged that at or around 1:47 a.m. on July 27, 2018 at the Ashmont MBTA station, Officer D.B., while acting in his role as an officer, physically assaulted a man without legal justification. It is alleged that Finnerty falsified an arrest report and a Duty Supervisor/OIC Command Staff shift briefing regarding the incident involving Officer D.B. – specifically, by including false and misleading statements and by omitting material information.

The charge of false reports provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Assistant U.S. Attorneys Kristina E. Barclay and Assistant U.S. Attorney Julien Mundele are prosecuting the case.

The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Source: Federal Bureau of Investigation FBI Crime News (b)

HOUSTON – A 48-year-old Iola resident has pleaded guilty to interstate transportation of waging paraphernalia, announced U.S. Attorney Alamdar S. Hamdani.

Marcos Trevino admitted to operating a raffle that offered a chance to win a limited edition Dodge Challenger SRT Demon automobile from 2018 to 2022. He promoted it throughout the United States on various websites, social media and at auto shows. The raffle’s website made it appear as though the participant was not purchasing a ticket. They were supposedly getting a koozie which, in turn, would grant them one entry for the drawing. The total cost of each of the beverage holders was $105.

The rules claimed no purchase was necessary and that a purchase would not improve chance of winning. However, there was no alternate means of entry other than the purchase of the koozie.  

Despite the raffle being in existence for almost four years, there was no drawing or receipt of prizes by any participants. No one has ever received a koozie. Trevino still had the Dodge Demon on his property at the time of his arrest. According to the website, total ticket sales reached 765 (resulting in funds totaling $80,325). 

Such a raffle is illegal for to conduct for various reasons. A charitable organization does not run it, there was no date was set for the drawing, there was no end date, proceeds were not spent on a lawful purpose, and it included statewide and interstate advertising. 

In addition, although the website claimed that a money back guarantee, there was no method described for a participant to get his/her money back.   

U.S. District Judge Alfred Bennett accepted the plea and set sentencing for Dec. 7. At that time, Lopez faces up to five years in federal prison as well as a possible $250,000 maximum fine. He could also be ordered to forfeit the earnings from the raffle and provide restitution to the participants. 

Previously released on bond, Trevino was permitted to remain on bond pending that hearing. 

The FBI conducted the investigation. Assistant U.S. Attorney Adam L. Goldman is prosecuting the case.

Source: Federal Bureau of Investigation FBI Crime News (b)

Source: Federal Bureau of Investigation FBI Crime News (b)

           WASHINGTON – An Arkansas man has been arrested on felony and misdemeanor charges related to his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

           Nathan Earl Hughes, 34, of Fayetteville, Arkansas, is charged in a criminal complaint filed in the District of Columbia with a felony offense of civil disorder. In addition to the felony, Hughes is charged with misdemeanor offenses of entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, and impeding passage through the Capitol grounds or buildings.

           Hughes was arrested on Aug. 30, 2023, in Fayetteville, Arkansas, and made his initial appearance today in the Western District of Arkansas.

           According to court documents, video footage obtained from law enforcement depicting the events at the Capitol on Jan. 6, 2021, shows an individual, later identified as Hughes, as present in the vicinity of the Lower West Terrace tunnel for at least one hour. Hughes wore a black/dark blue and camouflage print hat with a frayed brim, distinctive black Mechanix gloves, a gray hooded sweatshirt, and a black “Infowars” branded shirt with an image of a space shuttle and the words ‘Space Force Est. 2020” written on it.

           Court documents say that, at various points, Hughes pushed against the police line in the tunnel and helped other rioters physically fight police in an attempt to breach the line and enter the U.S. Capitol building. At approximately 3:15 p.m., Hughes was at the mouth of the tunnel and signaled the crowd of rioters, “C’mon! C’mon!” while waving his hand in the direction of the tunnel. After signaling to the crowd, Hughes entered the tunnel and charged toward the police line.

           Inside the tunnel, Hughes continued to signal others to enter and confront the police line. Hughes then stood shoulder-to-shoulder with others and began to rock back and forth in a synchronized movement with the crowd. At about 3:18 p.m., Hughes assisted the mob with forcefully removing police riot shields and passing them out of the tunnel. Hughes also personally attempted to forcefully pull away police shields and pass them out of the tunnel back to the other rioters.

           At approximately 3:19 p.m., as Hughes was being forced out of the tunnel by police, he was observed using his elbow to strike in the direction of police. After he was pushed out of the tunnel, Hughes remained in the vicinity of the tunnel for at least 90 minutes, encouraging other rioters to “Pull them out!” Earlier in the day, Hughes had witnessed the mob forcibly pulling police officers from the tunnel and into the crowd.

           This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Western District of Arkansas.

           This case is being investigated by the FBI’s Little Rock and Washington Field Offices, with valuable assistance provided by the U.S. Capitol Police and the Metropolitan Police Department.

           In the 31 months since Jan. 6, 2021, more than 1,106 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 350 individuals charged with assaulting or impeding law enforcement. 

           Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.