New Jersey : Today, in federal court in Brooklyn, New York, a New Jersey resident and dual U.S. and Russian national, Vadim Yermolenko, was sentenced to 30 months in prison for his role in a transnational arms dealing and money laundering network that sought to acquire ammunition and sensitive dual-use electronics for Russian military and intelligence services. In addition to the term of imprisonment Yermolenko was ordered to pay a forfeiture money judgment of $75,547. Yermolenko pleaded guilty in November 2024 to conspiracy to violate the Export Control Reform Act, bank fraud conspiracy, and conspiracy to defraud the United States.
“The defendant lied to banks, facilitated the illegal export of ammunition and sensitive technology, and evaded income taxes, all as part of a global procurement and money laundering network operated on behalf of the Russian government,” said U.S. Attorney Joseph Nocella for the Eastern District of New York. “Today’s sentence should send a message to all who would consider abusing the financial system to commit crimes on behalf of foreign nations: this office will find you, prosecute you, and, if you are convicted, seek a significant prison sentence.”
As alleged in court documents, the defendant was affiliated with Serniya Engineering (Serniya) and Sertal LLC (Sertal), two Moscow-based procurement companies. Serniya and Sertal operated a vast network of shell companies and bank accounts throughout the world, including in the United States, that were used in furtherance of the scheme to conceal the involvement of the Russian government and the true Russian end users of U.S.-origin equipment.
The defendant and his co-conspirators unlawfully purchased and exported highly sensitive, export controlled electronic components, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing, and other military applications. Serniya, Sertal, and several individuals and companies involved in the scheme were designated by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) in February 2022.
To carry out the scheme, Yermolenko helped set up numerous shell companies and bank accounts in the U.S. to illicitly move money and export-controlled goods. During the period charged in the indictment, more than $12 million passed through accounts owned or controlled by the defendant, which he failed to report to the IRS. These funds were used in part to purchase sensitive equipment used in radar, surveillance, and military research and development. In one instance, money from one of the defendant’s accounts was used to purchase export-controlled sniper bullets, which were intercepted in Estonia before they could be smuggled into Russia.
Co-defendant Nikolaos Bogonikolos previously pleaded guilty to wire fraud conspiracy and conspiracy to violate the Export Control Reform Act and was sentenced to 15 months in prison. Co-defendant Alexey Brayman previously pleaded guilty to conspiracy to defraud the United States and is awaiting sentence.
Assistant Attorney General John A. Eisenberg for National Security, U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York, Assistant Director in Charge Christopher G. Raia of the FBI’s New York Field Office, Special Agent in Charge Jonathan Carson of the U.S. Department of Commerce’s Office of Export Enforcement, New York Field Office (OEE), and Special Agent in Charge Harry T. Chavis Jr. of IRS Criminal Investigation New York (IRS-CI) made the announcement.
U.S. Customs and Border Protection, the Department of Justice’s Office of International Affairs, and the Estonian authorities provided valuable assistance.
Assistant U.S. Attorneys Andrew D. Reich and Matthew Skurnik for the Eastern District of New York are in charge of the prosecution, with assistance from Trial Attorney Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section. Former Assistant U.S. Attorney Artie McConnell and former Litigation Analysts Emma Tavangari and Mary Clare McMahon for the Eastern District of New York, as well as former National Security Division Trial Attorney Scott A. Claffee, contributed to the prosecution.
