Turkish national charged with wire fraud and illegally exporting defense articles to Turkey

Massachusetts

Defendant allegedly defrauded the U.S. Department of Defense and exported technical data controlled under the International Traffic in Arms Regulations and the United States Munitions List to Turkish manufacturer without an export license

BOSTON (USDOJ) – A Turkish national was arrested and charged in federal court in Boston in connection with fraudulently having various parts and machine components for the United States military made by a Turkish manufacturer in violation of arms regulations.

Arif Ugur, 52, formerly of Cambridge, Mass., was charged by criminal complaint with one count of wire fraud, one count of violating the Arms Export Control Act and one count of conspiring to violate the Arms Export Control Act. Ugur was arrested today in Virginia and will appear in federal court in Boston at a later date.

The criminal complaint alleges that in approximately May 2015, Ugur founded and was the sole managing partner of the Anatolia Group Limited Partnership (Anatolia), a domestic limited partnership registered in Massachusetts. Beginning in approximately July 2015, Ugur bid on and acquired numerous contracts to supply the U.S. Department of Defense (DOD) with a variety of machine parts and hardware items intended for use by the United States military. Many of these contracts required that the parts be manufactured in the United States. In his initial bids and in subsequent email communications with DOD representatives, it is alleged that Ugur falsely claimed that Anatolia was manufacturing the parts in the United States. In fact, Anatolia and Ugur had no manufacturing facilities in the United States or elsewhere. Instead, Ugur allegedly contracted with a Turkish manufacturer to make the parts and then passed them off to DOD as if they had been manufactured by Anatolia in the United States.

It is further alleged that Ugur shared technical specifications and drawings of various DOD parts and components with employees of the Turkish manufacturer so that they could produce the parts for Anatolia. Ugur also allegedly provided employees of the Turkish manufacturer and other Turkish nationals with access to DOD’s online library of technical specifications and drawings. Many of the parts that Ugur contracted to provide, and did provide to DOD, were designated as defense articles under the International Traffic in Arms Regulations (ITAR) and the United States Munitions List (USML). Thus, an export license was required to export the parts and related technical data (drawings, specifications, etc.) from the United States to Turkey. The complaint alleges that Ugur knew of these restrictions, but nonetheless exported technical data controlled under the ITAR and USML to employees of the Turkish manufacturer without an export license.

The charge of violating the Arms Export Control Act provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $1 million, or twice the gross gain or loss of the offense. The charge of conspiring to violate the Arms Export Control Act provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss of the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Patrick J. Hegarty, Special Agent in Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office; and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigation in Boston made the announcement today. The U.S. Department of Commerce, Bureau of Industry and Security also assisted in the investigation. Assistant U.S. Attorneys Jason A. Casey and Timothy H. Kistner of Mendell’s National Security Unit are prosecuting the case.

Details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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