Ilya Kahn, 66, a citizen of the United States, Israel and Russia was arrested in Los Angeles for his alleged involvement in a years-long scheme to secure and unlawfully export sensitive technology from the United States for the benefit of a Russian business, the United States Department of Justice said.
The business was sanctioned by the U.S. government following Russia’s invasion of Ukraine in February 2022. According to court documents, Kahn is charged by criminal complaint with conspiracy to violate the Export Control Reform Act (ECRA). Kahn will make his initial appearance in the Central District of California.
“As alleged, Kahn illegally sent specialized technology from the United States to a Russian semiconductor manufacturer with ties to multiple other sanctioned Russian entities and did so by circumventing U.S. export laws and regulations”
U.S. Attorney Breon Peace for the Eastern District of New York
According to court documents, Kahn is the owner of Senesys Incorporated, which is based in California, and Sensor Design Association, which maintains a contact address in Brooklyn. As alleged in the complaint and other public filings, Kahn operated these two businesses – ostensibly involved in “security software development” and the testing of silicon wafers for military avionics and space users – through which he engaged in a years-long conspiracy to acquire and export sensitive and sophisticated electronics from the United States to a sanctioned Russian business without acquiring the appropriate licenses.
The Russian business, Joint Stock Company Research and Development Center ELVEES (Elvees) was added to the Commerce’s Department’s Entity List in March 2022 and was sanctioned by the Treasury Department in September 2022 because of its critical role in facilitating Russia’s military and its invasion of Ukraine.
For example, according to the complaint, in 2022, Kahn exported U.S.-origin network interface controllers and a radio-frequency transmitter to Elvees in Russia by way of a Hong Kong-based shipping company. This item required an export license from the Commerce Department, which Kahn did not obtain.
If convicted, Kahn faces a maximum penalty of 20 years in prison for conspiracy to violate the ECRA.
