The Justice Department unsealed a criminal complaint charging Hungarian national Bence Horvath with violations of U.S. export controls targeting Russia, including by conspiring with others to illegally export U.S.-origin radio communications technology to Russian government end users without a license. Horvath is charged by complaint with one count of conspiring to violate the Export Control Reform Act of 2018 (ECRA). He was arrested on arrival at San Francisco International Airport in San Francisco, California, on Aug. 23.
“As alleged, the defendant attempted to purchase military-grade radios for Russian entities using a multinational procurement chain to evade law enforcement,” said 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.”
“Targeting illicit global procurement networks that operate in the shadows to equip the Russian government is of the highest priority to BIS,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department’s Bureau of Industry and Security (BIS). “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.”
“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,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “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.”
According to the court documents, Horvath and others managed a multinational procurement network that contracted directly with various entities in the Russian government and worked on large scale projects such as the construction of operational radio communications systems in Russia’s Kursk region along the Russian/Ukrainian border. The complaint alleges that Horvath himself arranged to purchase U.S.-origin radio communications technology and smuggle such technology to Russian government end-users through a network of affiliates located in Spain, Serbia, Hungary, Latvia, and elsewhere.
Beginning at least around January 2023, Horvath and others in his network initiated discussions with a small U.S. radio distribution company about procuring and exporting to Russia U.S.-manufactured military-grade radios and related accessories. Over the next several months, Horvath continued his efforts to secure those items, which he intended to transship to Russia via a freight forwarder in Latvia.
As part of the conspiracy, Horvath purchased 200 of the military-grade radios and intended to export them to Russia, but he was not successful. U.S. Customs and Border Protection detained the shipment, preventing the radios from falling into the hands of prohibited Russian end users.
Homeland Security Investigation, Defense Criminal Investigative Service and Department of Commerce are investigating the case.
Assistant U.S. Attorneys Christopher Tortorice and Maeghan Mikorski for the District of Columbia and Trial Attorney Sean Heiden of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Today’s 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 is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military 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.
