WASHINGTON – Five men, all associated with the front company “BusinessWorld” in Rawalpindi, Pakistan, and including Muhammad Kamran Wali(Kamran), 41, of Pakistan; Muhammad Ahsan Wali (Ahsan), 48, and Haji WaliMuhammad Sheikh (Haji), 82, both of Mississauga, Ontario, Canada; AshrafKhan Muhammad (Khan) of Hong Kong; and Ahmed Waheed (Waheed), 52, ofIlford, Essex, United Kingdom, were indicted in federal court forconspiracy to violate the International Emergency Economic Powers Act andthe Export Control Reform Act. The grand jury returned the indictment onOct. 16, 2019, and it was unsealed today.
“The defendants smuggled U.S. origin goods to entities that have beendesignated for years as threats to U.S. national security for their ties toPakistan’s weapons programs,” said Assistant Attorney General for NationalSecurity John C. Demers. “This indictment puts the world on notice not todo business with these defendants and demonstrates our commitment toholding them accountable. It also stands as an example of the kind ofdeceptive behavior U.S. businesses need to watch out for in designingappropriate export control and sanctions compliance programs.”
“Federal export control laws are vital tools that help prevent items frombeing exported overseas where they could be used in ways that canjeopardize our national security,” said U.S. Attorney Scott W. Murray forthe District of New Hampshire. “In order to protect the safety andsecurity of the American people, we work closely with our law enforcementpartners to identify those who violate these important laws. We willcontinue to be vigilant in our efforts to identify individuals whoseactions may jeopardize the national security of the United States.”
“The alleged behavior of these five individuals presented more than aviolation of U.S. export laws, it posed a potential threat to the nationalsecurity interests of the United States and to the delicate balance ofpower among nations within the region,” said Jason Molina, Acting SpecialAgent in Charge, Homeland Security Investigations. “HSI’sCounterproliferation group proactively works investigations into U.S.import-export licensing laws violations because of the threat it can poseto our national security.”
“The indictments unsealed today are a result of the ongoing coordinationand collaborative counter proliferation efforts by the Office of ExportEnforcement, the Justice Department, the Defense Criminal InvestigativeService, and Homeland Security Investigations,”said Special Agent in ChargeWilliam Higgins of the Office of Export Enforcement. “The Boston FieldOffice of the Office of Export Enforcement will continue to vigorouslypursue violators with all its partners to stem illicit trade that threatensU.S. national security and undermines U.S. foreign policy.”
“Stopping the illegal exportation of sensitive defense technology is a toppriority for the Defense Criminal Investigative Service (DCIS) and today’sindictment is the result of a multi-agency effort,” stated Special Agent inCharge Leigh-Alistair Barzey, DCIS Northeast Field Office. “The DCIS iscommitted to working with the USAO-NH, Homeland Security Investigations andthe Office of Export Enforcement, to protect our nation’s security byidentifying, investigating and prosecuting criminal procurement networks.”
According to the indictment, between September 2014 and October 2019, thedefendants operated an international procurement network of front companiesthat existed to acquire U.S.-origin goods for the Advanced EngineeringResearch Organization (AERO) and the Pakistan Atomic Energy Commission(PAEC), and to cause those goods to be exported from the United States tothe entities without export licenses in violation of federals law. BothAERO and PAEC were on the Commerce Department’s Entity List, which imposesexport license requirements for organizations whose activities are found tobe contrary to U.S. national security or foreign policy interests. PAECwas added to the Entity List in 1998. AERO was added to the Entity List in2014, after the U.S. Government found that it had used intermediaries andfront companies to procure items for use in Pakistan’s cruise missile andstrategic UAV programs.
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According to the indictment, the defendants attempted to conceal the truedestinations in Pakistan of the U.S.-origin goods by using theconspirators’ network of front companies as the supposed purchasers and endusers of the goods and as the apparent source of payments for the goods,even though the goods were ultimately received in Pakistan and paid for byAERO or PAEC. The defendants caused the U.S. companies to file exportdocuments that falsely identified the Ultimate Consignees of the shipmentsas entities other than AERO and PAEC. The defendants never applied for orobtained an export license from the Department of Commerce authorizing theexport of goods to AERO or PAEC in Pakistan.
The indictment identified 38 separate exports from the U.S. that thedefendants caused, involving 29 different companies from around thecountry. Three of those companies are in New Hampshire. None of the U.S.companies is alleged to have been complicit in the illegal exports. Eachdefendant is charged with two felony counts of conspiracy. Although arrestwarrants are pending, none of the five defendants has thus far beenapprehended.
This matter was investigated by the Department of Commerce’s Office ofExport Enforcement; the Department of Defense, Office of Inspector General,Defense Criminal Investigative Service; and Immigration and CustomsEnforcement’s Homeland Security Investigations. The case is beingprosecuted by Assistant U.S. Attorney John Davis and Trial AttorneyNicholas Hunter of DOJ’s Counterintelligence and Export Control Section,National Security Division.
The charges and allegations contained in an indictment are merelyaccusations. A defendant is presumed innocent until and unless provenguilty.
