Man Pleads Guilty to Illegal Export of Nuclear Materials to Pakistan
The U.S. Attorney's Office for the district of Maryland has announced that Nadeem Akhtar, owner of Computer Communication USA (CC-USA), has pleaded guilty to conspiring to commit export violations and to defraud the U.S. in connection with a scheme to illegally export nuclear-related materials to Pakistan.
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Used Company to Obtain Dual-Use Items for Export to Pakistan
According to his plea agreement, from October 2005 through March 2010, Akhtar and his conspirators used CC-USA to obtain or attempt to obtain radiation detection devices, resins for coolant water purification, calibration and switching equipment, attenuators and surface refinishing abrasives for export to restricted entities in Pakistan. Other items include mechanical and electrical valves, cranes and scissor lifts. The total worth of all of these items exceeds $400,000.
Due to the use of some of these items in both commercial and military applications (dual-use), a license would be required to export these items to an end-user of concern, or if exported in support of a prohibited end-use. Prohibited end-uses include activities related to nuclear explosives, nuclear reactors, or the processing and production of nuclear-related materials.
Restricted Entities Were Acting Contrary to U.S. Nat'l Security Interests
The restricted entities in Pakistan included organizations of concern to the U.S. government as acting contrary to the national security or foreign policy interests of the U.S. Exports of commodities to these organizations were prohibited absent the issuance of an export license. These restricted entities included: Pakistan’s Space and Upper Atmosphere Research Commission; and the Pakistan Atomic Energy Commission (PAEC) and its subordinate entities, such as the Chasma Nuclear Power Plant I and the research reactor maintained by the Pakistan Institute of Engineering and Applied Sciences.
Evaded Regs by Undervaluing Items, Not Revealing True End-User, Transshipping Items, Etc.
Akhtar attempted to evade export regulations and licensing requirements by: undervaluing and falsely describing the items being exported; failing to reveal the true end-user by using third parties and/or real and fake business entities/locations in Pakistan, Dubai and the U.S.; using individuals in Illinois and California to procure items for him under false pretenses; shipping items to his residences in Maryland so it would appear as though his company was the actual purchaser/end-user of the items; and transshipping the items from the U.S. through the United Arab Emirates.
Entities in Pakistani Gov't Gave Orders for Nuclear-Related & Other Commodities
Akhtar took direction from the owner of a trading company in Pakistan, who had business relationships with governmental entities in Pakistan. This individual would obtain orders for nuclear-related and other commodities from Pakistani government entities identified above, and then direct Akhtar as to what commodities to purchase in the U.S. for export to Pakistan, and the methods to be used to conceal the true nature, value and end-user of the items. Akhtar would negotiate prices and arrange for shipment of the commodities.
Man Received Commission as Percent of Cost of Each Item Obtained for Export
Akhtar’s co-conspirators included individuals in Pakistan, Dubai, and New York associated with the owner of the Pakistani trading company. The owner usually paid Akhtar a commission of five to seven and a half percent of the cost of each item Akhtar obtained for export from the U.S.
Faces Sentence of 5 Yrs in Prison, $250K Fine
Akhtar faces a maximum sentence of five years in prison and a $250,000 fine. Sentencing is scheduled for January 2012.