A Turkish man pleaded guilty today in Boston to charges that he attempted to illegally export defense technical data to foreign nationals in Turkey to fraudulently manufacture various United States military components in violation of the Arms Export Control Act. The US Department of Defense (DOD) later determined that some of the components were substandard and unsuitable for military use.
Arif Ugur, 53, pleaded guilty to two counts of wire fraud, two counts of violating the Arms Export Control Act and one count of conspiracy to violate the Arms Export Control Act. U.S. District Court Judge Nathaniel Gorton scheduled sentencing for December 14, 2022.
In 2015, Ugur, a Turkish national, founded and was the sole managing partner of Anatolia Group Limited Partnership (Anatolia), a domestic limited liability company registered in Massachusetts. Beginning in approximately July 2015, Ugur bid for and won numerous contracts to supply the DOD with a variety of machine parts and hardware items intended for use by the United States military. Many of these contracts required the components to be manufactured in the United States. In his initial bids and subsequent email communications with DOD officials, Ugur falsely claimed that Anatolia manufactured the components in the United States. In fact, Anatolia and Ugur had no production facilities in the United States or elsewhere.
Instead, Ugur shared technical specifications and drawings of various DOD parts and components with employees of the Turkish manufacturer so that they could produce the components for Anatolia. Ugur also provided the Turkish manufacturer’s employees and other Turkish nationals with access to DOD’s electronic library of technical specifications and designs. Many of the components Ugur contracted to provide and provided to DOD were classified as defense items under the International Traffic in Arms Regulations (ITAR) and the United States Munitions List (USML). Thus, an export permit is required to export the parts and related technical data (drawings, specifications, etc.) from the United States to Turkey. Uyghur knew these limitations,
The charge of violating the Arms Export Control Act carries a sentence of up to 20 years in prison, three years of supervised release and a $250,000 fine. The fraud charge carries a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross profit or loss from the offense. The charge of conspiracy to violate the Arms Export Control Act carries a sentence of up to five years in prison, three years of supervised release and a $250,000 fine.
Petros Kranias
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
