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| Photo Credit: The Hindu

A 57-year-old Indian national has been arrested in the U.S. on charges of procuring aerospace components on behalf of Russian entities in violation of export control laws.

Sanjay Kaushik, Managing Partner of New Delhi-based air charter services provider Arezo Aviation, was arrested in Miami on October 17 after he landed from India on an official travel, the Department of Justice said in a press release on Friday (November 22, 2024).

According to the company’s website, Arezo Aviation is based out of Maharam Nagar in Delhi Cantt area and is an aviation services firm involved in air charters, air ambulances, and the distribution of aircraft spare parts, lubricants, and pilot supply for commercial, general, and corporate aviation.

Currently detained in an Oregon jail, Mr. Kaushik has not sought release.

US Magistrate Judge Stacie F Beckerman on Friday (November 22, 2024) ordered that he remain in custody, citing him as a flight risk.

If convicted, Kaushik faces a maximum sentence of 20 years in prison and a fine of up to $1 million per count under the indictment.

“Kaushik is part of an illicit procurement network unlawfully obtaining aviation goods and technology from the United States for entities in Russia,” federal prosecutors told the court.

They claimed that Mr. Kaushik worked in collaboration with his Austria-based associate Markus Kaltenegger and others to obtain US-origin aviation goods for end-users in Russia.

According to court filings, Mr. Kaushik exported aircraft parts, components, and technology, from the U.S. to Russia and Russian end users without obtaining the required license or authorisation from the Department of Commerce for such exports and re-exports.

“Sanjay Kaushik is part of an illicit procurement network unlawfully obtaining export-controlled aviation goods and technology from the United States for entities in Russia, including sanctioned entities reportedly involved in providing aviation goods to the Russian government or military,” federal prosecutors alleged.

The evidence shows that Kaushik conspired with Kaltenegger and others to “facilitate the purchase, shipping, and negotiation of aviation goods from the US for re-export to Russian clients, splitting the profit from such illicit sales, in violation of the ECRA (Export Control Reform Act) and smuggling statutes,” they alleged.

The prosecutors alleged that Kaushik and Kaltenegger provided falsified end-user documentation to U.S. suppliers, claiming that components would be used in India, while they were destined for Russian clients. In one instance, Kaltenegger in September 2023 purchased an export-controlled Attitude and Heading Reference System (AHRS) from a US supplier in Oregon and later sold it for delivery to Moscow at more than double the price.

They claim that a search of Kaushik’s iCloud account uncovered evidence of communications indicating his involvement in procuring export-controlled items, including components for helicopters.

Emails presented in court purportedly show Kaushik’s knowledge of international restrictions and sanctions but indicate that he continued to pursue business deals with Russian clients. Financial records reveal that Kaushik transferred over USD 126,185.32 to Kaltenegger after receiving payments from PDS AVIA LLC, a Russian entity.

The indictment also accused Kaushik of continuing to supply aviation goods to Aircompany North-West LLC, a Russia-based entity listed by the U.S. Department of Commerce for providing aviation items to the Russian government and military, even after a warning from U.S. authorities earlier this year.

Federal prosecutors have described the alleged scheme as a significant violation of U.S. export laws, stating that Mr. Kaushik and his associates profited from illicit transactions involving aerospace components critical to aviation and defence industries.