A New Jersey resident, Vadim Yermolenko, who holds both U.S. and Russian citizenship, has been sentenced to 30 months in federal prison for taking part in an international scheme that helped Russia get sensitive technology and military supplies. He was also ordered to give up more than $75,000.
Yermolenko admitted guilt last year to three crimes: conspiring to break U.S. export control laws, plotting bank fraud, and working to cheat the United States government.
Investigators revealed that Yermolenko worked with two Russian companies that had already been flagged by U.S. authorities for helping Russia secretly buy technology. These companies used fake businesses and hidden bank accounts around the world. Their goal was to cover up the fact that the equipment was going to Russia’s military and intelligence agencies.
The items being purchased were not ordinary goods. Court filings said they included electronics that could support nuclear research, hypersonic missiles, quantum computing, radar, and surveillance systems.
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How the Illegal Operation Worked
Yermolenko helped set up many shell companies inside the United States. These fake businesses were used to move money and buy U.S.-made technology that is tightly restricted because it can be used for weapons.
Over $12 million flowed through accounts linked to Yermolenko. He never reported this money to the IRS. Part of these funds was used to purchase electronic parts that can be used in radar, surveillance, and even research for nuclear and hypersonic weapons.
Prosecutors said he also used the hidden funds to disguise the true purpose of the purchases. By failing to report the money, he committed tax fraud while also moving cash for Russia’s procurement network.
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In one alarming case, money from his accounts was used to buy sniper bullets. These bullets are classified as controlled items. Authorities in Estonia intercepted the shipment before it reached Russia. Without that interception, the ammunition could have been used in war zones.
The companies tied to the scheme had already been blacklisted by the U.S. Treasury Department in 2022. Their activities were part of a broader Russian effort to secretly obtain equipment from abroad, despite U.S. sanctions.
Other Defendants and International Cooperation
The case also involved other defendants. Nikolaos Bogonikolos, one of Yermolenko’s co-conspirators, admitted guilt in connection with wire fraud and breaking export control laws. He was sentenced to 15 months in prison. Alexey Brayman, another co-defendant, admitted guilt to conspiring against the U.S. government and is still waiting to be sentenced.
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Authorities in the United States worked closely with Estonian officials, as well as U.S. Customs and Border Protection, to stop the smuggling attempts. Several federal agencies, including the FBI, the Department of Commerce, and the IRS, played key roles in the investigation.
According to prosecutors, the network was designed to look legitimate on the surface but was secretly controlled by Russian interests. Sensitive electronics, which have both civilian and military uses, were at the heart of the operation. These items can play a role in developing advanced weapons systems, quantum technology, and high-tech surveillance.
Officials said Yermolenko lied to banks, tried to hide money movements, and failed to pay taxes. The charges highlighted not only the risk of sensitive technology ending up in the wrong hands but also the financial crimes used to cover up such activities.
The sentencing is part of a broader crackdown on global procurement and sanctions evasion schemes that seek to undermine U.S. export controls. The case shows how international cooperation and quick action can prevent dangerous technology and weapons from reaching unauthorized users.