US Charges Russian, Chinese National With National Security-Related Crimes

The U.S. recently unsealed a pair of indictments, one against Russian national Denis Postovoy and the other against Chinese national Song Wu, for national security-related offenses. Postovoy is accused of conspiring to commit export control violations by shipping microelectronic components with military applications from the U.S. to Russia, while Song is charged with fraud and identity theft related to efforts to obtain confidential or proprietary software from government agencies, research universities and private companies.

DOJ said the indictments stem from the work of the multi-agency Disruptive Technology Strike Force, which is co-led by DOJ and the Commerce Department to "counter efforts by hostile nation states to illicitly acquire sensitive U.S. technology to advance their authoritarian regimes and facilitate human rights abuses." Along with the Postovoy and Song indictments, DOJ said three other recent cases also came from the task force's efforts.

The other cases are against Massachusetts man Sam Bhambhani and Russian national Maxim Teslenko for shipping laser welding machines to Russia (see 2409100038), U.S.-Iranian national Jeffrey Nader for allegedly exporting aircraft parts to Iran (see 2408150003) and U.S.-Iranian national Gholam Reza Goodarzi for allegedly smuggling unmanned aerial vehicle (UAV) parts to Iran (see 2409040009).

From at least February 2022, DOJ said Postovoy allegedly procured and exported the microelectronic components, which can be used in UAVs or drones, from U.S. companies to Russia through a web of companies he owns or operates in Hong Kong, Russia and other nations. His companies include Hong Kong-based firms WowCube HK Limited, JST Group Hong Kong and Jove HK Limited, and the Russia-based Vector Group.

Postovoy allegedly hid the end users of the goods by submitting false information on export-related documents and transshipping items that were ultimately meant for Russia in intermediary locations, including Hong Kong and Switzerland. The seven-count indictment charges Postovoy with conspiring to violate the Export Control Reform Act, smuggling, money laundering and defrauding the U.S. The Russian national was arrested on Sept. 17 in Florida.

The suit against Song, unsealed Sept. 17, charges the man with conducting a "multi-year 'spear phishing' email campaign," in which he pretended to be a U.S.-based researcher or engineer to obtain restricted software used for "aerospace engineering and computational fluid dynamics." The software could be used in industrial or military settings, including for the "development of advanced tactical missiles and aerodynamic design and assessment of weapons."

Song allegedly sent emails to people working in the U.S. government, including employees of NASA, the Air Force, the Navy, the Army and the Federal Aviation Administration. Phishing emails also were sent to individuals working in research universities in Georgia, Michigan, Massachusetts, Pennsylvania, Indiana and Ohio, and employees at private aerospace companies, DOJ said.

While conducting the scheme, Song worked as an engineer at Aviation Industry Corporation of China, a state-owned aerospace and defense contractor that makes civilian and military aircraft, the agency said. Commerce has added affiliates of the Aviation Industry Corporation to the Entity List. Song is charged with 14 counts of wire fraud and 14 counts of aggravated identity theft.