In a recent development, the U.
S. Department of Justice (DOJ) has disclosed the arrest and subsequent charging of two American men of Russian descent.
The duo, Sergey Nefedov and Mark Shumovich, stand accused of attempting to unlawfully export snowmachines and related parts valued at nearly half a million dollars to Russia, in direct violation of the sanctions imposed on the nation. This information was reported by the Daily Caller.
According to the DOJ's statement, the federal prosecutors have alleged that the two men, Nefedov, 40, from Anchorage, Alaska, and Shumovich, 35, from Bellevue, Washington, orchestrated a scheme to export these high-value goods to Russia without the necessary licenses and approvals, thereby breaching U.S. export laws.
The indictment further reveals that the pair allegedly planned to ship the luxury items to Russia through an intermediary company based in Hong Kong between March 2022 and May 2023. This action, if proven, would be a clear violation of the U.S. Executive Order 14068, which restricts trade with Russia following its unlawful military invasion of Ukraine on February 24, 2022.
The indictment also details that a Russian national, who operates a snowmachine sales company in Russia, allegedly collaborated with a Russian businessman based in Hong Kong to facilitate the shipment of goods worth nearly $1 million from Hong Kong to Russia. The Russian businessman is said to have created invoices for the purchase of snowmachines and other motorsport vehicles from Nefedov's company, Absolut Auto Sales LLC.
The indictment further alleges that the Russian company owner expressed his need for the goods to "transit in a third country" from the U.S. as deliveries of equipment to Russia "have been stopped". The Russian company owner reportedly approved quotes that Nefedov and Shumovich had received from U.S.-based snowmachine distributors and freight forwarders. Subsequently, Nefedov and Shumovich allegedly purchased the snowmachines in the U.S. using funds wired from the Russian company owner via the Hong Kong-based Russian businessman to Nefedovs Absolut Auto Sales LLC.
The indictment also alleges that a freight forwarder, acting on instructions from the American duo, misled U.S. authorities by stating that the snowmachines were destined for Hong Kong, a location that does not require an export license, thereby "provid[ing] false information to U.S. authorities by concealing the end user and destination of the snowmachines."
Upon discovery, the authorities impounded the snowmachines. If found guilty, Nefedov and Shumovich could each face up to five years in prison for conspiring to unlawfully export goods from the U.S. and defraud the U.S. They could also face 10 years in prison for smuggling, 20 years for unlawful export without a license in violation of the Export Control Reform Act, and another 20 years for conspiracy to commit international money laundering, according to the DOJ.
In addition to these charges, Nefedov faces accusations of "money laundering and making a false statement in violation of the Export Control Reform Act, which both carry maximum penalties of 20 years in prison", the DOJ added.
Special Agent in Charge Robert Hammer of Homeland Security Investigations (HSI)s operations in the Pacific Northwest, in the DOJs statement, said, "This seizure of snowmachines and the coordinated investigation led to the disruption and identification of a transnational criminal network attempting to circumvent Russian sanctions."
The DOJs Task Force KleptoCapture, announced by Attorney General Merrick Garland on March 2, 2022, coordinated the case. This task force is part of the U.S. response to Russias unprovoked military invasion of Ukraine, enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed.
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