US tech smuggler faces 20 years for Russia sanctions scheme


The American-Israeli national faces two decades behind bars for facilitating a scheme to export dual-use semiconductors and other tech to a sanctioned Russian firm with ties to the military.

Ilya Khan pleaded guilty to running a scheme to trade with Joint Stock Company Research and Development Center ELVEES (Elvees) and other Russian companies, the Department of Justice (DoJ) said.

The US sanctioned Elvees in 2022, as the company supplies Russia’s security services, military, and defence sector.

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According to the DoJ, Khan ran two companies, Senesys Incorporated and Sensor Design Association. While officially, the companies were involved in “security software development,” the authorities say businesses were a front to a “years’ long conspiracy” to peddle sensitive tech to Elvees.

Khan’s firms allowed Russia access to semiconductors necessary for communications systems, GPS receivers, and drones. All of this tech is vital in Russia’s war in Ukraine, which the Kremlin launched at full scale in 2022.

The 66-year-old businessman admitted to running a transnational network of front companies and bank accounts that allowed them to facilitate tech supply to sanctioned entities in Russia.

DoJ claims that chips would reach Russia via Hong Kong and mainland China. Trade with Elvees netted Khan’s companies over $50 million, 10% of which Khan channeled for personal use. As part of the plea deal, he agreed to forfeit ill-gotten gains.

Khan faces a maximum penalty of 20 years in prison.

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