Hungarian National Charged with Violating U.S. Export Controls to Russia
The Justice Department has unsealed a criminal complaint against Hungarian national Bence Horvath, accusing him of violating U.S. export controls by conspiring to illegally export U.S.-origin radio communications technology to Russian government end users without a license. Horvath, charged with one count of conspiring to violate the Export Control Reform Act of 2018 (ECRA), was arrested upon his arrival at San Francisco International Airport on August 23.
“As alleged, the defendant attempted to purchase military-grade radios for Russian entities using a multinational procurement chain to evade law enforcement,” stated Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department remains committed to disrupting and holding accountable criminal networks that continue to fuel Russian aggression abroad and threaten our collective security.”
Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department’s Bureau of Industry and Security (BIS) emphasized the importance of targeting illicit global procurement networks. “As Horvath’s arrest demonstrates, it doesn’t matter where in the world you operate – when the United States believes your conduct violates our export laws, we take action,” he said.
U.S. Attorney Matthew M. Graves for the District of Columbia added, “This defendant allegedly sought to skirt U.S. export controls put in place to protect our national security and to address Russia’s unprovoked full-scale invasion of Ukraine. We will continue to work with our partners to bring to justice the people who scheme to secure U.S. technology in violation of U.S. laws.”
Court documents reveal that Horvath and his associates managed a multinational procurement network that directly contracted with various Russian government entities. They were involved in large-scale projects such as constructing operational radio communications systems in Russia’s Kursk region, near the Ukrainian border. The complaint alleges that Horvath organized the purchase of U.S.-origin radio communications technology and smuggled it to Russian government end-users through affiliates in Spain, Serbia, Hungary, Latvia, and other locations.
Beginning in January 2023, Horvath and his network engaged in discussions with a small U.S. radio distribution company to procure and export U.S.-manufactured military-grade radios and related accessories to Russia. Over several months, Horvath continued his attempts to secure these items, intending to transship them to Russia via a freight forwarder in Latvia.
As part of the conspiracy, Horvath purchased 200 military-grade radios, intending to export them to Russia. However, U.S. Customs and Border Protection detained the shipment, preventing the radios from reaching prohibited Russian end users.
The investigation is being conducted by Homeland Security Investigation, the Defense Criminal Investigative Service, and the Department of Commerce.
Assistant U.S. Attorneys Christopher Tortorice and Maeghan Mikorski for the District of Columbia, along with Trial Attorney Sean Heiden of the National Security Division’s Counterintelligence and Export Control Section, are prosecuting the case.
The actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force aims to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture focuses on enforcing the sanctions, export restrictions, and economic countermeasures imposed by the United States and its allies in response to Russia’s unprovoked invasion of Ukraine.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
