ISLAMABAD – Two Pakistani businessmen have pleaded guilty before a US courtto money laundering in connection with funds they received for the unlawfulexport of goods to Pakistan.
Muhammad Ismail, 67, and Kamran Khan 38, now face a maximum jail term of 20years.
Since the time of their arrests in December 2016, Ismail has been releasedon a USD 50,000 bond, and Kamran Khan has been released on a USD 100,000bond.
According to court documents and statements made in court, from 2012 toDecember 2016, Ismail, and his two sons, Kamran and Imran Khan, wereengaged in a scheme to purchase goods that were controlled under the ExportAdministration Regulations (EAR) and to export those goods without alicense to Pakistan, is violation of the EAR.
Imran, 43, has already pleaded guilty to violating US export laws.
Through companies conducting business as Brush Locker Tools, KauserEnterprises-USA and Kauser Enterprises-Pakistan, the three defendantsreceived orders from a Pakistani company that procured materials andequipment for the Pakistani military, requesting them to procure specificproducts that were subject to the EAR.
When US manufacturers asked about the end-user for a product, they eitherinformed the manufacturer that the product would remain in the US orcompleted an end-user certification indicating that the product would notbe exported, federal prosecutors said.
After the products were purchased, they were shipped by the manufacturer tothem in Connecticut. The products were then shipped to Pakistan on behalfof either the Pakistan Atomic Energy Commission, the Pakistan Space & UpperAtmosphere Research Commission or the National Institute of Lasers &Optronics, all of which were listed on the US Department of Commerce EntityList.
The Entity List identifies foreign parties that are prohibited fromreceiving some or all items subject to the EAR unless the exporter securesa license.
They never obtained a license to export any item to the designated entitieseven though they knew that a license was required prior to export.