A former salesman for a laser welding machine manufacturer was arrested on Monday, facing charges of conspiring to illegally export equipment to a subsidiary of Rosatom, Russia’s state nuclear company. The U.S. government alleges that the salesman, Sam Bhambhani, helped facilitate exports to the Russian entity by falsifying documents to evade U.S. export controls.
Salesman Accused of Export Violations
The indictment against Bhambhani, a North Attleboro, Massachusetts resident, was filed in a federal court in Boston. According to the charges, Bhambhani worked as a salesman for a global supplier of laser equipment used in welding, cutting, engraving, and motion systems. His company had facilities in Rhode Island and Florida.
The indictment details that from 2015 to 2021, Bhambhani conspired with a Russian citizen, Maxim Teslenko, to sell the equipment to a Rosatom subsidiary in Yekaterinburg, Russia. This subsidiary was involved in the production of components for both nuclear munitions and civilian goods.
Falsified Export Documents
According to U.S. prosecutors, Bhambhani and Teslenko used falsified documents to hide the real end-user of the laser equipment from U.S. export control authorities. In a 2020 exchange cited in the indictment, Bhambhani acknowledged the difficulty in circumventing U.S. export laws due to the growing restrictions on trade with Russia.
“Also, we will have to figure out the shipment and invoicing as now there are too many controls put on export to Russia. ‘Politics!'” Bhambhani allegedly wrote to Teslenko.
US Export Restrictions Tighten
The charges come amid tightening U.S. export regulations on items that could bolster Russia’s defense, aerospace, and maritime sectors, particularly following Russia’s invasion of Ukraine in February 2022. These sanctions and export controls are designed to limit the flow of critical technology that could be used by the Russian government or its military.
While Bhambhani’s lawyer has not commented on the case, the U.S. government continues to investigate potential violations of export laws involving sensitive technologies, especially those linked to Russia’s nuclear capabilities.
Rosatom’s Role in Russian Industry
Rosatom, the state nuclear corporation of Russia, is responsible for overseeing nuclear energy and weaponry in the country. As such, any sales of equipment used in manufacturing nuclear-related components, even for civilian purposes, are subject to strict U.S. export controls.
The indictment highlights the risks posed by unauthorized sales to foreign entities and the potential consequences for U.S. citizens and companies involved in circumventing these regulations.
