Sentencing in Brooklyn Dual-Use Scheme

A Montreal man was sentenced Wednesday to  to 40 months in prison for conspiring to commit export control violations.

Nikolay Goltsev masterminded a global procurement scheme on behalf of sanctioned Russian companies, including Russian military companies. Some of the electronic components shipped by Goltsev were later found in seized Russian weapons platforms and signals intelligence equipment in Ukraine.

Goltsev used two Brooklyn companies, SH Brothers Inc. and SN Electronics Inc., to unlawfully source, purchase and ship millions of dollars in dual-use electronics from U.S. manufacturers to sanctioned end users in Russia. 

During the period charged in the indictment, SH Brothers made hundreds of shipments valued at over $7 million to Russia.

To carry out the defendants’ criminal scheme, Goltsev purchased the electronic components from U.S. manufacturers and distributors under the auspices of SH Brothers and SN Electronics and arranged for the items to be shipped from those manufacturers and distributors to various locations in Brooklyn.

The co-conspirators then unlawfully shipped the items to a variety of intermediary front companies located in other countries, including Turkey, Hong Kong, India, China and the United Arab Emirates, where they were rerouted to Russia.

Goltsev’s communications show that he had a sophisticated understanding of export control laws. For example, in a message in February 2023, Goltsev advised another co-defendant to “write something more substantial [to the U.S. company] so that there are no more questions.” The co-defendant responded, “is it better to provide them with a Chinese end user,” to which Goltsev stated, “yes should be ok.”  Goltsev’s communications also show that he knew the electronic components were going to Russia for use in Ukraine and support of Russia. 

In July 24, Goltsev's wife, co-defendant Kristina Puzyreva, was sentenced to 24 months in prison for conspiracy to launder the proceeds of the export scheme. Co-defendant Salimdzhon Nasriddinov is awaiting sentencing.

“Goltsev and his wife thought they would ‘get rich’ by running an illicit global procurement scheme to supply sanctioned end users in Russia,” said Acting Assistant Secretary for Export Enforcement Kevin J. Kurland of the Department of Commerce. “Instead, they got jail time.”

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