Aircraft MRO Smuggler Appeal Denied

BIS Chief Alan Estevez dismissed an appeal of a Temporary Denial Order issued in June against Russian national Alexey Sumchenko for his activities smuggling aircraft parts through Hong Kong to Russian airline customers. 

Sumchenko argued that the alleged misconduct outlined in the TDO occurred after he relinquished ownership of the entities, reasoning Judge Tommy Cantrell found unpersuasive.

"Respondent makes two arguments. He first argues a TDO is not necessary to prevent him from imminently violating the EAR because he is no longer an owner or director of Skywind, Hong Fan, and Lufeng.

"Specifically, Respondent argues the TDO “addresses alleged violations that occurred after February 2022,” and that Respondent “was divesting his ownership and resigning” from the companies during 2022 and 2023.

"Respondent asserts his “ownership of the companies is the only allegation that purportedly ties him to the alleged violations described in the TDO.”  I am not persuaded.

"First, I note Respondent never challenged the truth of the allegations of the TDO, he merely distances himself from the conduct by stating he gave up ownership  of two of the companies (Hong Fan and Lufeng) by June 2022. Respondent conveniently ignores his own exhibits, which show he was still director of the companies until November 14, 2022.

"Respondent’s exhibits also show he remained in control, as owner and director, of Skywind until November 23, 2023.

"Respondent alternatively argues even if he was in control of the companies while they were engaged in the illicit conduct, the TDO does not prove he “was involved in or even knew about those events.”  I find this argument unpersuasive."

Background

June 12, 2024 BIS issued a TDO against Skytechnic, Skywind International Limited, Hong Fan International, Lufeng Limited, Unical dis Ticaret Ve Lojistik JSC, Izzi Cup DOO, Alexey Sumchenko, Anna Shumakova, Branmir Salevic, and Danijela Salevic. [12346]

Their transnational scheme to circumvent BIS export controls is responsible for the export of approximately 260 shipments, the majority of which contained aircraft parts, to Russia.

The Russian recipients included Pobeda Airlines, and  PJSC Aeroflot,  also subject to  TDOs.

Other Airline TDOs Renewed

September 20, BIS renewed Temporary Denial Orders for Russian carriers Utair Aviation, Azur Air, and Aeroflot.