Russian Businessman Sentenced to 3 Years for Smuggling Military-Grade Microelectronics to Russia via Hong Kong

Russian businessman, Maxim Marchenko, has been sentenced to three years in prison for smuggling military-grade microelectronics to Russia through Hong Kong. Marchenko used a network of shell companies to illegally procure OLED displays for Russian military applications, including advanced weaponry such as night vision goggles and rifle scopes. The scheme, which took place from May 2022 to August 2023, involved deceiving US distributors by falsely claiming the microelectronics were destined for legitimate uses in China and Hong Kong.

The US Department of Justice stated that Marchenko’s shell companies, including Alice Components, Neway Technologies Limited, and RG Solutions Limited, purchased over $1.6 million worth of sensitive technologies which were then transshipped through third countries to reach Russian end users. The investigation was a collaboration between the FBI, the Commerce Department’s Bureau of Industry and Security, and the State Department’s Diplomatic Security Service, with assistance from the Justice Department’s Office of International Affairs.

Assistant Attorney General Matthew G. Olsen emphasized that this sentence sends a clear message that the illicit procurement of US technology for Russia’s aggression will not be tolerated. The case was prosecuted by the Southern District of New York and the National Security Division’s Counterintelligence and Export Control Section, in coordination with the Justice Department’s Task Force KleptoCapture and the Disruptive Technology Strike Force dedicated to combating Russia’s efforts to acquire critical technology.

For more related topics, the FBI has recently made arrests related to cyberattacks and hacking incidents involving Russian actors, highlighting the ongoing efforts to disrupt such illicit activities.