New Jersey Resident Pleads Guilty in Russian Military Procurement Scheme
Vadim Yermolenko, a 43-year-old dual U.S.-Russian national residing in New Jersey, has admitted to charges of conspiracy to violate the Export Control Reform Act, commit bank fraud, and defraud the United States. His guilty plea is linked to a transnational network aimed at acquiring sensitive dual-use electronics for Russian military and intelligence purposes.
Attorney General Merrick B. Garland highlighted the significance of this case, stating, “This defendant joins the nearly two dozen other criminals that our Task Force KleptoCapture has brought to justice in American courtrooms over the past two and a half years for enabling Russia’s military aggression.” Garland further emphasized that Yermolenko played a crucial role in a disrupted plot with Russian intelligence to smuggle sniper rifle ammunition and U.S. military-grade equipment into Russia.
FBI Director Christopher Wray expressed the dangers associated with illegal exports, noting, “The illegal export of sensitive, dual-use technologies in support of Russia’s war effort poses a significant threat to the United States and its allies and must not be tolerated.”
Investigations and Legal Actions
Yermolenko’s involvement with Moscow-based companies Serniya Engineering and Sertal LLC, both linked to Russian intelligence, was central to this procurement scheme. These companies operated an extensive network of shell entities worldwide to obscure the Russian government’s involvement in acquiring U.S.-origin equipment.
According to court documents, Yermolenko and his associates purchased and exported electronic components that could be employed in nuclear weapons, hypersonic weapons, and other military technologies. The U.S. Department of the Treasury and the Department of Commerce imposed sanctions on Serniya, Sertal, and other entities associated with the scheme after Russia’s invasion of Ukraine in February 2022.
International and Domestic Collaboration
Sertal had authorization for sensitive procurement activities from Russia’s Federal Security Service (FSB), and its clients included prominent Russian defense and intelligence bodies. To execute the scheme, Yermolenko established multiple shell companies and bank accounts in the U.S. to facilitate illegal financial transactions and exports. Over $12 million was funneled through his accounts, used partly to buy equipment for radar and military research.
In a notable incident, sniper bullets purchased using these funds were intercepted in Estonia before reaching Russia.
Ongoing Legal Proceedings
Co-defendant Alexey Brayman has also pleaded guilty and is awaiting sentencing. Charges against Vadim Konoshchenok were dismissed following his removal from the U.S. in a prisoner exchange with Russia. The case against Nikolaos Bogonikolos is still pending, while Boris Livshits, Alexey Ippolitov, Svetlana Skvortsova, and Yevgeniy Grinin remain fugitives.
The investigation has been conducted by the FBI, BIS, and IRS, with assistance from U.S. Customs and Border Protection, the Department of Justice’s Office of International Affairs, and Estonian authorities.
This case is part of the coordinated efforts through the Justice Department’s Task Force KleptoCapture and the Disruptive Technology Strike Force to enforce sanctions and prevent illicit acquisition of critical technology by hostile nations.
