United States v. By Trade OU

On April 5, 2023, By Trade OU, an Estonia-based company, was sentenced, following its December 1, 2022 guilty plea, for its role in a conspiracy to violate U.S. export control laws and regulations and smuggle a jig grinder that was manufactured in Connecticut to Russia without an export license. A jig grinder is a high-precision grinding machine system that does not require a license to export to European Union countries but does require a license for export and reexport to Russia because of its potential application in nuclear proliferation and defense programs. By Trade OU admitted that it received funds from a Russian company, identified in the indictment as “Company B,” to purchase a jig grinder on the Russian company’s behalf from a Latvian company that had arranged to purchase the jig grinder from a manufacturer in Connecticut.

By Trade OU pleaded guilty to one count of conspiracy to violate the Export Control Reform Act, and one count of international money laundering conspiracy and agreed to forfeit €312,192.44 (approximately $342,000). In a related civil forfeiture action, U.S. District Judge Victor A. Bolden also ordered the forfeiture of $484,696 that had been delivered to the Connecticut manufacturer as part of the attempted purchase of the jig grinder.

Press Release: Federal Court Orders Forfeiture of $826K in Funds Used in Attempt to Export Dual-Use High Precision Jig Grinder to Russia