Export Privileges Denied for Maxim Marchenko After Conviction

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Date: 2024-07-17

On July 17, 2024, Maxim Marchenko was convicted in the U.S. District Court for the Southern District of New York. He was found guilty of smuggling goods from the United States in violation of 18 U.S.C. 554 and for conspiracy to commit money laundering.

Marchenko unlawfully caused companies in the United States to export OLED micro-displays to Russia. The court sentenced him to 36 months in prison and three years of supervised release.

According to Section 1760(e) of the Export Control Reform Act (ECRA), a person convicted of certain offenses, like smuggling, can have their export privileges denied for up to ten years. Any licenses from the Bureau of Industry and Security (BIS) that the person had at the time of conviction may also be revoked.

The Bureau of Industry and Security (BIS) received notice of Marchenko’s conviction. BIS gave Marchenko a chance to submit a written statement. He did not provide any written response.

After reviewing the case, BIS decided to deny Marchenko’s export privileges for ten years from his conviction date. This ban lasts until July 17, 2034.

Details of the Export Ban:

  • Maxim Marchenko cannot take part in any business involving any item (commodity, software, or technology) subject to the Export Administration Regulations, whether directly or indirectly.
  • He cannot apply for, obtain, or use any export license, or be involved in negotiations, buying, selling, or any transaction related to exported items covered by the regulations.
  • Marchenko cannot benefit from any transaction involving items exported from the U.S.

Restrictions for Others:

  • No person may export or help export any item subject to the regulations to Marchenko.
  • Nobody can help Marchenko get ownership, possession, or control of regulated items.
  • No one can acquire regulated items from Marchenko with knowledge that such items will be exported from the United States.
  • No person can service any regulated item owned or controlled by Marchenko if it involves use of items exported from the United States.

Extension of the Order:

Any person, firm, corporation, or business linked to Marchenko by ownership, control, position, affiliation, or business connection may also be subject to the order to prevent evasion.

Appeal Process:

Marchenko may appeal the order to the Under Secretary of Commerce for Industry and Security. The appeal must be filed within 45 days and follow the rules in Part 756 of the Regulations.

Public Notice:

  • A copy of the order will be delivered to Marchenko and published in the Federal Register.
  • The order is effective immediately and will remain so until July 17, 2034.

Issued by: Steven Fisher, Acting Director, Office of Export Enforcement.


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