New Jersey man convicted in Russia sanctions evasion scheme

A New Jersey man who helped facilitate a Russian arms dealing and money laundering operation has been sentenced to 30 months’ imprisonment.

In addition to the prison term, dual US-Russian national Vadim Yermolenko was ordered to pay a forfeiture money judgment of $75,547. 

Yermolenko pled guilty in November 2024 to conspiracy to violate the Export Control Reform Act, bank fraud conspiracy, and conspiracy to defraud the US. Court documents allege that he worked with OFAC-designated Russian procurement companies Serniya Engineering and Sertal LLC to obscure the Russian end users of US-origin technology. The companies, which aimed to transfer ammunition and sensitive dual-use electronics to Russia’s military and intelligence services, worked through a global network of shell companies and bank accounts.  

Yermolenko and others allegedly purchased and exported controlled dual-use electronic components, including sensitive tech used in nuclear and hypersonic weapons development as well as quantum computing. Yermolenko also helped in setting up the US-based shell companies and bank accounts used in the operation.

The US Department of Justice said in a statement that ‘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.’

Joseph Nocella, US Attorney for New York’s Eastern District, said, ‘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. 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.’