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Pakistani businessmen plead guilty to money laundering in US

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Press Trust of India Washington
Last Updated : Mar 06 2018 | 1:30 PM IST
Two Pakistani businessmen have pleaded guilty before a US court to money laundering in connection with funds they received for the unlawful export of goods to a company that procured materials and equipment for the Pakistani military.
Muhammad Ismail, 67, and Kamran Khan 38, now face a maximum jail term of 20 years.
Since the time of their arrests in December 2016, Ismail has been released on a USD 50,000 bond, and Kamran Khan has been released on a USD 100,000 bond.
According to court documents and statements made in court, from 2012 to December 2016, Ismail, and his two sons, Kamran and Imran Khan, were engaged in a scheme to purchase goods that were controlled under the Export Administration Regulations (EAR) and to export those goods without a license to Pakistan, in violation of the EAR.
Imran, 43, has already pleaded guilty to violating US export laws.
Through companies conducting business as Brush Locker Tools, Kauser Enterprises-USA and Kauser Enterprises-Pakistan, the three defendants received orders from a Pakistani company that procured materials and equipment for the Pakistani military, requesting them to procure specific products that were subject to the EAR.

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When US manufacturers asked about the end-user for a product, they either informed the manufacturer that the product would remain in the US or completed an end-user certification indicating that the product would not be exported, federal prosecutors said.
After the products were purchased, they were shipped by the manufacturer to them in Connecticut.
The products were then shipped to Pakistan on behalf of either the Pakistan Atomic Energy Commission, the Pakistan Space & Upper Atmosphere Research Commission or the National Institute of Lasers & Optronics, all of which were listed on the US Department of Commerce Entity List.
The Entity List identifies foreign parties that are prohibited from receiving some or all items subject to the EAR unless the exporter secures a license.
They never obtained a license to export any item to the designated entities even though they knew that a license was required prior to export.

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First Published: Mar 06 2018 | 1:30 PM IST

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